Monex Group’s Japan, US and China revenues are down in 1Q FY2017

In response to decreased trading volume in the US market, online trading services provider Monex Group, Inc. (TYO:8698) has reduced 40 headcounts in April 2016 and more than 60 headcounts on July 27, 2016.

The company has also launched the TradeStation trading platform in Japan in March 2016. First-ever functions in Japan have been well received and enabled us to acquire a new customer base different from our existing one. Full-scale marketing activities scheduled to begin in the 2Q of FYE 2017.

Monex-Saison-Vanguard Investment Partners’ wrap asset management service are scheduled to be launched this fall. The company’s aim is to increase assets under management in the mid- and long- term with the coming era of large inheritances.

The final launch of the new backbone brokerage system was changed from fall 2016 to early 2017. Migration to the backbone system for futures and options completed in mid-July as scheduled.

monex consolidated performance

Segment performance:

Japan segment

・Revenues and profit went down from the previous quarter

・Brokerage commissions decreased by 7% due to lower stock trading volume

・Booked JPY 508 M of other income 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

US segment

・Revenues went down from the previous quarter and recorded JPY 398 M of net loss (JPY 271 M of net loss for 4Q FYE Mar. 2016)

・Brokerage commission decreased by 5% (in USD) due to lower trading volume in stocks, futures and options

・JPY 145 M one-time expenses related to FX platform business booked as loss on business restructuring due to suspension of the original plan

China segment

・Revenues went down from the previous quarter and recorded JPY 11 M of net loss (JPY 5 M of net loss for 4Q FYE Mar. 2016)

・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

monex segment performance

You can view the full report from Monex by clicking here.


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Monex Group's Japan, US and China revenues are down in 1Q FY2017


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