Japanese online trading company Monex Group Inc. (TYO:8698) just announced its financial results for fiscal year ended March 31, 2017. The highlights are:
Segment profit of JPY 1,768M, which is 70% decrease YoY in FYE Mar. 2017, due to decrease in stock and FX trading volume and increase in costs for parallel operation of backbone system.
- Continued fixed-type cost control initiatives since 2Q
- Implemented new commission structure to attract new customer base in 4Q. The number of newly-opened funded accounts in 4Q reached the record highest
- Recognized two consecutive quarters of segment profitability, contributing to the group’s enterprise value
Segment profit maintained black for two consecutive quarters driven by controlling the fixed-type costs since 2Q, however, segment loss of JPY 457M was recognized due to the loss recognized up to 2Q.
4Q turned black with increased trading volume. For overall FYE Mar. 2017, recorded segment loss of JPY 97M due to decrease in trading volume.
Profit decreased by the costs to migrate Japan’s backbone system
Segment profit of JPY 255M in 4Q (3 months), which is a decrease by 64% QoQ, due to the parallel operation and temporary costs regarding migration of the backbone system
Segment profit of JPY 69M in 4Q (3 months) driven by increased equities and options trading volume, and continued improvement of net financial income
Brokerage commission increased by 27% QoQ at Monex Boom Securities (in HKD) and turned black in operating income. Segment loss of JPY 39M in 4Q (3 months) was recognized due to equity in losses of an equity method investment in a joint venture in mainland China
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