Monex Inc, the Japanese retail Forex broker, earlier today posted some of the financial metrics for the first month of 2015, with numbers painting a rather gloomy picture, as revenues fell on an annual and monthly basis, while financial expenses rose.
Let’s start with the operating revenues which amounted to JPY 4.53 billion (USD 38 million), falling by 10% from the JPY 5.04 billion mark recorded in December 2014. On an annual basis the decline was less pronounced, with the operating revenues down by 4%.
Financial expenditure surged in monthly terms. In January 2015, MONEX’s financial expenses reached JPY 611 million, up by massive 54% from the JPY 396 million level recorded in December 2014. On an annual basis, the situation was less dull, with expenditure down by 4.7% from levels seen in January 2014.
The financial metrics are in tune with the disappointing operating metrics for January 2015, released earlier this month, which showed a drop in Forex trading volumes. It seems that trading activity (and volumes, subsequently) was not propelled upwards by “Black Thursday” events. The trend seems to be exactly the opposite.
Regarding the rise in expenses, we cannot skip mentioning that the Japanese operations have been undergoing restructuring for several months, as Monex FX is gradually being merged with Monex Inc. Although the move is ultimately targeted at reducing expenditure, it may require some investments and capital at this point.
You can view the detailed financial data by clicking here.