Monex Group released financial results for Q1 of Fiscal Year Ending March 31, 2017. During April to June, 2016, the consolidated trading operating revenue after deducting financial expenses was 10,635 million JPY, decreased by 6.65% from the previous quarter and the quarterly profit attribute to owners of the company was 261 million JPY, -26.5% from the previous quarter. The company maintained profitability despite decreased trading volume in the market.
JapanThe revenue was 6,790 million JPY and the profit was 673 million JPY, they decreased by 4.4% and 3.6% respectively from the previous quarter. This decrease was caused by lower stock trading volume resulting decline of brokerage commissions. 508 million JPY of other income was booked as reversal of allowance for loss on cancellation of outsourcing contract due to the change of the migration schedule towards the final launch of the new backbone brokerage system. System related expenses increased by 149 million JPY to 3,317 million JPY because of “TradeStation” trading platform in Japan going into operation. The company aims to develop an active trader market which has room for growth even in the sluggish market by the launch of TradeStation. The company will conduct full-scale marketing for it from Q2 this FY.
USThe revenues went down to 3,976 million JPY from 4,569 million JPY in the previous quarter and recorded 398 million JPY of net loss (ref: 271 million JPY of net loss for the previous quarter). Brokerage commission decreased by 5% (in USD) due to lower trading volume in stocks, futures and options. When comparing with the same quarter of the previous FY, the revenue increased by 3% (in USD) due to higher trading volume of futures offset by the decrease in revenue caused by the assignment of FX business. 145 million JPY one-time expenses related to FX platform business was booked as loss on business restructuring due to suspension of the original plan.
ChinaThe revenues decreased by 4.6% to 167 million JPY from the previous quarter and the net loss was 11 million JPY (ref: 5 million JPY of net loss for the previous quarter). Stock brokerage commission decreased by 13% (in HKD) due to lower trading volume in Hong Kong stock market. Net financial income increased by 10% (in HKD) due to increase in margin lending transactions
(Source: Monex )