Monex Group Reports Disappointing Preliminary Q1 Results

While most of its peers registered year-on-year growth, Monex is struggling to achieve the same results as 2014. According to the latest preliminary figures it released for the final quarter of the fiscal year ending March 31, the group is experiencing a protracted slow down.

Preliminary quarterly results for the 4th quarter of fiscal 2015 ending on the 31st of March, are reported as slightly lower than for Q3. Total operating revenues decreased modestly, by 1.5% to ¥13.9 billion ($116.5 million). In the interim, net income decreased materially by 20%, which netted the company ¥2.6 billion ($21 million).

Looking at the quarter on quarter comparison, the company remains more or less on the right track, but annual results present a different picture.

Total operating revenues for the fiscal year ending on March 31st decreased by 7% to ¥50.9 billion ($427 million). Income before taxes collapsed by 63.9% to ¥6.1 billion ($51 million), while net income shed 67.2% to ¥3.4 billion ($28.5 million).

For the Japanese focused subsidiary of Monex Group, the picture has not been materially different. Monex Inc. reported operating revenues for fiscal 2015 lower by 12.2% to ¥32.9 billion ($275 million). Operating income for the full year declined by 38.9% to ¥8.7 billion ($73 million).

Compared to its peers in the industry, it appears as if Monex is losing market share compared to a year ago. The activity on the Japanese securities markets has been vibrant recently, with the Nikkei 225 surpassing the 20,000 mark for the first time since March 2000.