Japan’s Monex Group, which operates several brokerages and a crypto Exchange , published its financials for the second quarter of the ongoing fiscal year, reporting a massive yearly surge in revenue and profits.
The revenue for the quarter came in at 24.8 billion yen, more than 64 percent higher than Q2 of 2020. Additionally, the pre-tax profit of the group surged by 238 percent to 7.2 billion yen. However, on a quarterly basis both of these figures pulled back by 9.1 percent and 36 percent, respectively.
The group ended the quarter with a net profit of 4.7 billion yen.
Monex Group’s business can be divided into four key segments: crypto exchange Coincheck, US online broker TradeStation, Japanese online broker Monex and a few other brands in the Asia-Pacific.
The key driver of the group’s revenue remains the booming Japanese crypto demand. Blockchain and other crypto-asset revenue of the company for the last six months came in at 24 billion yen, dwarfing its established traditional brokerage businesses.
The crypto segment generated a profit of 4.8 billion yen in the quarter, while the other Japanese businesses brought in 3.7 billion yen in profits. However, the American brokerage remained in losses.
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In addition, Monex confirmed that it will start to raise capital for the growth of its US business.
“TradeStation is preparing to raise capital and funds in the US to promote its growth strategy. It increased headcount and expanded customer base through enhanced marketing initiatives,” Monex stated. The US broker even underwent re-branding, improved commission strategies and expanded products over the past few years.
The platform is targeting the new young trader base in the country, and it ended the quarter with more than 160,000, which is a yearly jump of 30 percent. Moreover, the total client assets on the platform climbed by 44 percent to $11.3 billion.
Meanwhile, Monex recently launched wealth management services to cater to the growing demand of its customer base. This has added another vertical to the group’s business.
