Revenue Up, Profit Down for Rakuten Securities in Q3 2016

Net cash flows from operating activities for the third quarter of 2016 amounted to ¥60,247 million.

Rakuten Securities Inc, one of the largest foreign exchange (FX) brokers in Japan, ‎has reported its financial results for the Q3 2016 ending September 30, 2016, which were emblematic of higher revenues and lagging profits, according ‎to a Rakuten statement. ‎

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The financial statement also covers a period over the past nine months between January 1 to September 30, 2016. ‎

For Q3 2016, Rakuten Securities revealed that revenues from continuing ‎operations pointed higher, coming in at ¥190,451 million ($1,790 million), a gain of 4.2 percent ‎YoY from ¥182,705 million ($1,717 million) in Q3 2015. ‎

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However, Rakuten Securities yielded an operating income of ¥26,419 million ($248.30 million) during the three ‎months ending September 30, 2016, a loss of -4.6 percent from ¥27,669 million ($260.05 million) in the year earlier. ‎This figure was largely influenced by negative impact of higher operating expense ‎which rose by 5.44 percent over the same period to ¥163,029 million ($1,531 million).‎

The same narrative was noted across the YTD results, with operating revenues coming ‎in at ¥559,357 million ($5,254 million) which is up 8.7 percent compared to its 2015 equivalents, while the net income dropped 9 percent when weighed against the same ‎nine months ending September 30, 2015. ‎

In terms of overall assets, Rakuten currently holds ¥4,278,402 million ($40,185 million), an increase of ‎‎¥8,449 million from ¥4,269,953 million ($40,106 million) at the end of the previous fiscal year. ‎Moreover, net cash flows from operating activities for the nine months ended ‎September 30, 2016 amounted to ¥60,247 million ($566.06 million) compared with a cash inflow of ‎‎¥29,555 million ($277.69 million) for the same period of previous fiscal year.‎

Back in September, the Hong Kong subsidiary, Rakuten Securities HK, has launched a brand new forex ‎account service under the name Rakuten FX. The move follows the expansion of Rakuten ‎Securities in the APAC region after the company acquired last month 100 per cent of the shares in ‎Australian foreign currency broker FXAsia Pty Ltd.‎

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