Monex Group Sees Solid Q3 Results, Hits Record Profits in US

In the United States, segment profit come in at ¥700 million, a record high for the Group.

Monex Group, a Tokyo-based financial services company that operates retail brokerages TradeStation, Monex, Boom Hong Kong, and cryptocurrency exchange Coincheck, announced its unaudited consolidated financial results for the third quarter of its 2019 fiscal year.

Today, the company has released its financial results up until the end of the third quarter for its 2019 fiscal year ending March 31, 2019. This period is the nine months ended December 31, 2018.

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For this period, total revenue for the Monex Group was ¥40.78 billion ($374.86 million). When measured against the same time period in 2017, which had total revenue of ¥38.89 billion this is 4.86 percent higher.

Contributing the most to total revenues is operating revenue. During the nine months ended December 31, 2018, operating revenue was ¥40.12 billion. This is again higher than the prior year period by 4.53 percent.

Taking a look at profit, once financial expenses and income tax has been deducted, the “quarterly” profit for the nine-month period in 2018 was ¥2.59 billion. When comparing this against the same period in the previous year, this is actually less by 43.04 percent, as the quarterly profit for the same nine-month period in 2017 was ¥4.55 billion.

Monex Group financial breakdown by region

The Monex Group has operations in Japan, the United States and the Asia Pacific. Starting first with Japan, the sector saw an increase in revenue and income due to the growth in equities and foreign exchange (forex) trading.

Specifically, in the third quarter of the company’s 2019 fiscal year, which is from October 1, 2018, until December 31, 2018, segment profit for Japan was ¥1.1 billion. This is a jump of 36 percent when compared to the previous quarter.

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In Japan, through Monex’s FX service FX Plus, trading volume largely increased during the quarter, which contributed to a rise in the total forex revenue. Furthermore, the market share of traded currency in FX trading hit 1.5 percent for the first time since 2011.

In the United States, an increase in net financial income, which has increased for the last four consecutive quarters, drove the region’s growth to its highest quarterly segment profits. An uptick in financial income coupled with a rise in market volatility, saw segment profit come in at ¥700 million, a record high for the Group and 82 percent higher than the previous quarter.

In the Asia Pacific, whilst Monex Boom Securities managed to maintain a business surplus, the company still recorded a segment loss of ¥30 million.

Coincheck resumes operations, halves losses

Taking a look at the Group’s cryptocurrency operations, Coincheck, a cryptocurrency exchange, resumed its services during the quarter which improved the profitability of the Crypto Asset segment for the Group.

Nonetheless, the segment still reported a loss overall of ¥300 million. However, this is an improvement from the second quarter of the 2019 fiscal year, as the segment reported a loss of ¥600 million.

A new look for the Monex Group

On the same day that the Monex Group released its financial statements, the company also unveiled a new look for the Group in anticipation for its 20th anniversary in April. This new look was showcased by a corporate website revamp.

According to the statement: “the aim of the renewed website [is] to comprehensively convey to shareholders and retail investors the Group’s corporate information as well as the Group’s ESG related initiatives, which focus on the environment, society, and governance.”

“…the company decided to fully renovate the corporate site to communicate who we are and what we do extensively to those who are interested in knowing more about the Group. We will keep updating the corporate information on the new website.”

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