Monex Net Revenues Drop 14.3% in January, Expenses Skyrocket 43.4%

The Monex Group has released today its monthly consolidated financial results for January 2014, showing weak results during the first month of the year from the Japanese broker.

Total operating revenues for the group dropped by 9.3% from the previous month to about $46.1 Million (¥4.719 billion). The financial expenses of MONEX jumped by a whopping 43.4% compared to December 2013 to about $6.3 million (¥641 million), leaving net operating revenues after deducting financial expenses of only $39.8 million (¥4.077 billion), a month-over-month decrease of 14.3%.

The Monex Group has not yet released the exact breakdown of the financial results which are needed to explain the dramatic rise in its financial expenses and the drop in revenues. The drop in revenue especially stands in contrast due to the fact that Monex reported the month of January's FX volumes as having reached the highest they have been in the last half year. Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates contacted the Group and will update if and when the exact financial details are released.

UPDATE: Speaking with Forex Magnates, a MONEX spokesperson explained that operating revenue includes commission fees incurred out of stock trading of the group, which has a big impact on the figure. "As to the consolidated figure, operating revenue includes valuation gain of option on convertible bond of Akatsuki FG (+414 million yen) which is for one-time in December. January just got back to the normal."

Also explained by the MONEX spokesperson, the considerable increased in financial expanses was due to "stock-lending fee in financial result in U.S. segment increased while revenue from that increased."

MONEX financial results comparison for the last four months (Unit: million Yen):