Monex Sees 14% Q2 Revenue Drop with Crypto Business Losing 400 Million Yen

Monex Group, a Japan based financial service company which has recently been incorporated into "JPX-Nikkei Index 400"​, has released its operating metrics for the second quarter of the financial year 2023, showing a total revenue of more than 21.3 billion yen, up 4.5% compared to the previous quarter, dropping more than 14.1% on a yearly basis.

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The commission-based revenue for the 3 months came in at 9.6 billion yen, which is higher than 9 billion yen in Q1 FY23 and 9.1 billion in Q2 FY22. The total operating revenue for the quarter declined 9.5% YoY to 19.96 billion yen. The net trading income stood at 2.4 billion yen, and the financial income at 7.3 billion yen. 

The quarterly expense of the financial group increased to 20.3 billion yen, despite a yearly decline in revenue.

Between July and September, it generated a pre-tax profit of 996 million yen, which is lower than 1.07 billion yen in the previous quarter and 7.16 billion yen in Q2 FY22. The net profit came in at 262 million yen, representing a drop of more than 73% QoQ and 94.5% YoY.

Monex Group's business include US online broker TradeStation, Japanese online broker Monex, crypto exchange Coincheck and a few other brands in the Asia-Pacific.

Tradestation's operating income saw a jump of $18.6 million QoQ, and its profit stood at $3.5 million, while in Q1, the American trading platform suffered a loss. Additionally, Tradestation slightly reduced its quarterly advertising expense by changing its strategy to focus on sophisticated and active traders.

The crypto business driven by Coincheck, however, still witnessed a loss of around 400 million yen during the quarter as a result of the slowdown in trading activities.