Japan’s financial services giant, Monex Group (TYO: 8698), has generated total revenue of more than 21.3 billion yen in the second quarter of the financial year 2023. It was almost 4.5 percent higher than the previous quarter but had declined by more than 14.1 percent on a yearly basis.

Monex Group Revenue in Focus

It generated 9.6 billion yen from the commission-based revenue, which is higher than 9 billion yen in Q1 FY23 and 9.1 billion in Q2 FY22. With a net trading income of 2.4 billion yen and a financial income of 7.3 billion yen, the total operating revenue for the quarter came in at 19.96 billion yen, which is a yearly decline of 9.5 percent.

The quarterly expanse of the financial group increased despite a yearly decline in revenue. Between July and September, its expenses for the three months came in at 20.3 billion yen.

The pre-tax profit for the quarter came in at 996 million yen, which is lower than 1.07 billion yen in the previous quarter and 7.16 billion yen in Q2 FY22. After considering taxes, the net profit of the Japanese group decreased to 262 million yen, which is a decline of more than 73 percent quarter-over-quarter and 94.5 percent on a yearly basis.

Monex Group Expanding Key Divisions

Monex Group’s business can be divided into four key segments: crypto exchange Coincheck, US online broker TradeStation, Japanese online broker Monex and a few other brands in the Asia-Pacific.

Tradestation’s operating income improved by $18.6 million quarter-over-quarter, pulling it from a loss in Q1 to a profit of $3.5 million in Q2. Additionally, the American trading platform changed its strategy to focus on sophisticated and active traders, which resulted in an $8.9 quarterly advertising expense reduction.

Monex’s crypto business, which Coincheck drives, generated a loss of around 400 million yen during the quarter due to the slowdown in trading activities. However, the group continued to expand its services in this division.