After publishing its trading metrics for June, Kabu, an online securities broker, has now published its monthly business results, revealing an overall disappointing performance for the company.
During June, Kabu reported total revenues generated by commission fees of ¥424 million ($3.9 million). This is lower than the ¥478 million revenue generated in the previous month by 11.3 percent. June’s value is also the lowest reported all year.
Commissions for Kabu are generated via four segments - Stocks, equity credit, futures and options, and other. In June, all four segments noted a month-on-month decline in terms of revenue generated.
Kabu, which is a subsidiary of the Mitsubishi UFJ Financial Group, saw the biggest drop in commission fee revenue from stocks, which fell by 14.5 percent month-on-month. Futures and options revenue was also down by 9.2 percent when measured against the previous month.
In June of 2019, the securities broker also saw a sizable drop in net operating income. Specifically, during the month, net operating income was ¥1.246 billion. This is lower by ¥68 million or 5.2 percent than what was achieved in May.
One place where the broker did report an uptick in revenues was in market making, which is generally the biggest revenue maker for the company. Last month, Kabu reported an uptick of ¥24 million or 4.0 percent in this segment, bringing the monthly total to ¥619 million, up from May’s value of ¥595 million.
Kabu again reports solid non-traditional revenue
Non-traditional revenue, which includes API revenue, equity commissions excluding financial product intermediation, and credit-finance balance, however, again noted a solid increase month-on-month.
Throughout the month of June, Kabu generated ¥652 million in non-traditional revenue. This is stronger than April’s result of ¥605 million by ¥47 million or 7.8 percent. It is also the strongest monthly value achieved all year.
