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Monex Group

Monex Group 8698

マネックスグループ
Monex Group, Inc.
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ARK Mori Building 25F 1-12-32, Akasaka, Minato-ku Tokyo 107-6025
https://www.monexgroup.jp/jp/index.html
03-4323-8698
Summary
Monex Group, Inc. started as online brokerage Monex, Inc. in April 1999 with CEO Oki Matsumoto and Sony Corporation as core investors. The company grew through mergers with Nikko Beans, Inc. in 2005, and ORIX Securities in 2010. The group expanded overseas by adding Boom Group and TradeStation Group, Inc. in 2010 and 2011, respectively.
Capital Markets
Key dates
2018-02-13
Coverage initiation
Full Report
2022-05-02
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Executive summary

One of Japan’s top five online brokers with subsidiaries in US and in cryptocurrency exchange business

Monex Group, Inc. started as online brokerage Monex, Inc. in April 1999 with CEO Oki Matsumoto and Sony Corporation as core investors. The company grew through mergers with Nikko Beans, Inc. in 2005, and ORIX Securities in 2010. The group expanded overseas by adding Boom Group (in Hong Kong) in 2010 and TradeStation Group, Inc. (in the US) 2011. Seeing blockchain and cryptocurrency technology as key growth drivers in the future, Monex Group has been preparing to enter this field since announcing its “new beginning” initiative in October 2017. In keeping with this plan, it subsequently acquired cryptocurrency exchange operator Coincheck, Inc. in April 2018.

Monex Group’s core business is retail online brokerage services. The company offers trading services mainly in equities, forex, and investment trusts (mutual funds), as well as futures, options, bonds, and cryptocurrency. Peers are SBI Securities, Rakuten Securities, Matsui Securities, and au Kabucom Securities (in order of market share).

In FY03/21, mainstay subsidiary Monex, Inc. reported a total of 1.94mn customer accounts (ranking it third among Japan’s top five online brokerages with 11.8% market share), customer assets under custody of JPY5.1tn (third; 13.1%), equity trading value of JPY19.2tn (fifth, 5.8%), and margin trades outstanding of JPY207.6bn (fifth; 7.9%). Monex is distinguished from its competitors by its US subsidiary and its subsidiary in the cryptocurrency exchange business. Its customer base mainly consists of investors with a longer-term outlook who do not mind paying higher commissions for the diverse trading order options and trading tools the company offers.

Monex Group has five reporting segments: Japan, US, Asia-Pacific, Crypto Asset, and Investment. At the Japan segment, Monex, Inc. is the core business, at the US segment the core business is TradeStation Group, at the Asia-Pacific segment the core business is Boom Securities, at the Crypto Asset segment the core business is Coincheck, and at the Investment segment the core business is Monex Ventures. In FY03/21, the Japan segment accounted for 38.8% of net operating revenue, the US segment 30.6%, and the Crypto Asset segment 27.8%. At the pre-tax profit level, the Japan segment accounted for 34.2% of consolidated earnings, the US segment 15.0%, and the Crypto Asset segment 46.3%.

Japan (Monex, Inc.): At the Japan segment, net operating revenue comes from stock brokerage commissions (51.4% in FY03/21), trading income (15.6%), and net financial income (22.7%). Segment SG&A expenses are mostly fixed costs, with trading-related expenses accounting for 27.5%, personnel expenses 22.1%, and system-related expenses 44.9% in FY03/21.

US (TradeStation Group): At the US segment, net operating revenue comes from commissions received (78.4% in FY03/21) and net financial income (17.1%). Segment SG&A expenses includes trading-related expenses (35.6% in FY03/21), personnel expenses (38.8%), and system-related expenses (18.2%)—the elevated level of personnel expenses reflecting the high cost of its in-house software development team. At end-March 2021, the US segment reported a total of 145,887 active accounts and USD10.3bn in customer assets under custody.

Crypto Asset (Coincheck, Inc.): As a cryptocurrency exchange operator, Coincheck derives the majority of its operating revenue from net trading income. Segment SG&A expenses includes trading-related expenses (40.4% in FY03/21), personnel expenses (28.7%), and office expenses (4.6%). At end-FY03/21, Coincheck reported a total of 3.72mn downloads of it trading app by users, of which the number of users with verified identities came to 1.20mn . Coincheck is currently the top cryptocurrency exchange operator in Japan both in terms of the number of cryptocurrencies handled (16) and trading app downloads.

Trends and outlook

For FY03/22, the company reported full-year consolidated operating revenue of JPY88.8bn (+14.0% YoY), net operating revenue of JPY83.5bn (+13.4% YoY), operating profit equivalent of JPY14.9bn (-37.3% YoY), pre-tax profit of JPY20.8bn (-2.3% YoY), and profit attributable to parent company shareholders of JPY13.0bn (-9.2% YoY). Operating revenue reached a historical high due to growth in the Japan, US, and Crypto Asset segments. Operating profit equivalent declined as the company stepped up its marketing activities in the US.

In the wake of the move by major online brokers in the US to commission-free trading in October 2019, Monex changed its own direction in Q3 FY03/20 and began working to move its business model away from a brokerage service-based model and more toward an asset management service-based model. Under the new business model, the Monex Group will be focusing less on generating brokerage commissions and more on receiving compensation for services to support the wealth building and asset management of its customers.

Strengths and weaknesses

Shared Research sees the company’s strengths as its diversification by region, business, and customer base; customers willing to pay higher commissions for its value-added services; and highly acclaimed trading platform. Its weaknesses lie in a high cost structure and being late to acquire active traders due to a product-driven approach. (See the Strengths and weaknesses section for details.)

Key financial data


Income statementFY03/13FY03/14FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22
(JPYmn)IFRSIFRSIFRSIFRSIFRSIFRSIFRSIFRSIFRSIFRS
Operating revenue36,09054,72250,97554,27145,83153,63552,17553,22677,90588,783

YoY18.1%51.6%-6.8%6.5%-15.6%17.0%-2.7%2.0%46.4%14.0%
Net operating revenue33,76950,05145,20949,64241,85249,15547,41747,99073,69583,549

YoY16.9%48.2%-9.7%9.8%-15.7%17.4%-3.5%1.2%53.6%13.4%
Operating profit equivalent3,41015,0698,0668,2471,2749,3022,7275,15523,83314,949

YoY20.6%341.9%-46.5%2.2%-84.6%630.1%-70.7%89.0%362.3%-37.3%

% of net operating revenue9.4%27.5%15.8%15.2%2.8%17.3%5.2%9.7%30.6%16.8%
Pre-tax profit6,99816,8956,1155,1001,0718,6311,7904,13121,29620,801

YoY162.3%141.4%-63.8%-16.6%-79.0%705.9%-79.3%130.8%415.5%-2.3%

Pre-tax profit margin19.4%30.9%12.0%9.4%2.3%16.1%3.4%7.8%27.3%23.4%
Profit attributable to owners of the parent3,90110,3543,4943,5542986,7301,1813,01114,35413,032

YoY279.5%165.4%-66.3%1.7%-91.6%--82.5%155.0%376.7%-9.2%

Profit margin10.8%18.9%6.9%6.5%0.7%12.5%2.3%5.7%18.4%14.7%
Per-share data









Issued shares at end-FY ('000 shares ) 2,997287,681287,681284,134280,592269,706266,322258,999258,999267,447
EPS13.035.812.212.51.124.34.411.655.850.0
EPS (fully diluted)---12.51.124.3-11.649.6-
Dividend per share4.118.08.29.65.210.05.45.912.015.3
Book value per share265.8280.5302.2302.0290.0298.5297.3297.7347.7391.6
Balance sheet (JPYmn)










Cash and cash equivalents51,19385,44268,54061,90277,90083,884154,146132,561186,683253,458

Cash segregated as deposits349,837426,719525,567497,442552,028543,438566,220620,222751,888843,590

Margin transaction assets149,487178,230175,637149,236147,653192,224138,836107,207182,017162,285

Loans secured by securities44,583152,382159,96931,62834,25021,38942,06432,74842,77491,376

Intangible assets37,39441,55848,80753,05353,75149,85147,69846,00644,86145,350
Total assets682,193939,2701,055,242888,116936,776973,5201,027,8491,022,9341,401,1301,607,761

Margin transaction liabilities39,74536,30846,12533,00640,66429,68332,79330,04437,63729,004

Loans payable secured by securities67,661183,765195,52171,97477,50478,203101,02872,349117,259159,317

Deposits received231,164287,385368,656350,904324,672324,256358,176393,344492,466592,373

Guarantee deposits131,535167,039184,850170,666257,753254,647249,544282,006334,357348,569

Bonds and loans payable113,381159,125150,418154,261138,133191,010190,641147,941246,220262,627
Total liabilities602,492858,569968,310802,094855,090893,027947,707945,9091,310,6051,501,742
Total equity79,70280,70186,93286,02281,68780,49380,14277,02490,524106,018
Total interest-bearing debt113,381159,125150,418154,261138,133191,010190,641147,941246,220262,627
Cash flow statement(JPYmn)









Cash flows from operating activities-20,510-8,256-24976643,715-38,70153,83434,454-63,81851,701
Cash flows from investing activities4015,960-8,602-5,934-8,301-5,87222,763-7,068-7,158-6,026
Cash flows from financing activities30,39535,998-11,968-673-18,46249,870-5,909-48,39995,48313,763
Financial ratios









ROA (pre-tax profit-based)1.2%2.1%0.6%0.5%0.1%0.9%0.2%0.4%1.8%1.4%
ROE5.0%12.9%4.2%4.1%0.4%8.3%1.5%3.9%17.3%13.4%
Equity ratio11.7%8.6%8.2%9.7%8.7%8.3%7.8%7.5%6.5%6.6%
Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Figures that exceed 1,000% YoY are denoted by -.

Recent updates

Notice regarding year-end dividend

2022-05-02

On April 27, 2022, Monex Group, Inc.  announced its year-end dividend forecast for FY03/22.

The company’s shareholder returns policy aims at paying stable dividends of at least JPY7.5 per share for each half-yearly period and conducting share buybacks at the discretion of management. It also aims to improve total shareholder returns (TSR). For FY03/22, the company plans to pay a year-end dividend of JPY7.7 per share (JPY7.5 in FY03/21), bringing the annual dividend per share to JPY15.3 (JPY12.0 in FY03/21).

Total shareholder returns (TSR): Calculated as (capital gain (change in share price) + dividends) ÷ amount invested.

Notice regarding Coincheck Group B.V, a consolidated subsidiary's listing on NASDAQ by De-SPAC

2022-03-23

Monex Group, Inc. announced the planned listing on NASDAQ of consolidated subsidiary Coincheck Group B.V. through De-SPAC transaction.

Monex Group concluded a business combination agreement between Coincheck Group B.V. (CCG), a wholly owned subsidiary that will become the holding company of Coincheck Inc. as a result of the transaction, and Thunder Bridge Capital Partners IV, Inc. (TBCP), a SPAC listed on NASDAQ. CCG plans to list its shares on NASDAQ following the business combination.

CCG is scheduled to be listed on NASDAQ with the ticker symbol CNCK by end-2022. Under the agreement, the pre-money equity valuation of CCG (equity valuation before the above transaction) is calculated as the initial valuation of around USD1.3bn (approximately JPY150bn) + earn-out (price adjustment that allows for the acquisition of 50mn additional CCG shares if certain conditions are met). The earn-out portion is worth UD500mn (approximately JPY60bn; calculation based on the assumption that CCG shares are initially issued at USD10 per share).

CCG will remain a consolidated subsidiary of Monex Group after listing on NASDAQ, making Coincheck Inc. a wholly owned subsidiary of CCG. The company also commented that the growth strategies of Coincheck and CCG will remain an important part of Monex Group's strategy.

Trends and outlook

Quarterly trends and results

CumulativeFY03/21FY03/22
(JPYmn)Q1Q1–Q2Q1–Q3Q1–Q4Q1Q1–Q2Q1–Q3Q1–Q4
Operating revenue14,26729,31747,26577,90527,06049,09469,69188,783
YoY8.5%12.6%22.5%46.4%89.7%67.5%47.4%14.0%
Net operating revenue13,20827,10643,93373,69426,06946,80065,93883,549
YoY11.2%16.4%27.6%53.6%97.4%72.7%50.1%13.4%
Commissions received8,50616,83825,43836,8649,07518,23827,57637,361
YoY48.7%47.0%44.9%45.3%6.7%8.3%8.4%1.3%
Brokerage commissions6,55912,61218,80226,8606,12012,11518,38124,809
YoY51.1%45.5%41.0%38.6%-6.7%-3.9%-2.2%-7.6%
Equity and ETF4,4148,44312,80318,5163,9417,72911,62315,403
YoY71.4%64.2%55.7%54.0%-10.7%-8.5%-9.2%-16.8%
Futures and options commissions2,1364,1435,9018,0151,9584,0126,2588,798
YoY23.0%18.9%16.6%9.7%-8.3%-3.2%6.0%9.8%
Underwriting and distribution commissions52452632757105115
YoY-84.4%-57.1%-34.2%-40.0%440.0%137.5%101.9%82.5%
Subscription and distribution commissions2468294477
YoY-96.6%-96.6%-96.5%-95.5%0.0%125.0%633.3%862.5%
Other commissions1,9404,1986,5789,9332,9266,0569,04612,360
YoY50.5%60.7%65.5%73.9%50.8%44.3%37.5%24.4%
Net trading income1,7824,4459,50924,50413,38521,89127,23830,477
YoY-22.7%4.5%61.8%186.6%651.1%392.5%186.4%24.4%
Financial income3,7357,48611,48715,3944,2658,36113,72718,886
YoY-24.2%-24.8%-21.2%-17.1%14.2%11.7%19.5%22.7%
Other operating revenue2455478311,1443344727811,109
YoY23.7%45.9%50.3%58.4%36.3%-13.7%-6.0%-3.1%
SG&A expenses11,26422,85134,67649,86115,14830,67049,30768,601
YoY5.6%8.2%10.5%16.4%34.5%34.2%42.2%37.6%
% of net operating revenue85.3%84.3%78.9%67.7%58.1%65.5%74.8%82.1%
Operating profit equivalent1,9444,2559,25723,83310,92116,13016,63114,948
YoY60.0%96.4%203.5%362.3%461.8%279.1%79.7%-37.3%
% of net operating revenue14.7%15.7%21.1%32.3%41.9%34.5%25.2%17.9%
Pre-tax profit1,9914,1528,94421,29611,10718,26919,27920,801
YoY66.5%89.2%191.9%415.5%457.9%340.0%115.6%-2.3%
% of net operating revenue15.1%15.3%20.4%28.9%42.6%39.0%29.2%24.9%
Profit attributable to owners of the parent1,4252,9196,54814,3547,26012,02712,46213,017
YoY67.8%73.9%190.8%376.7%409.5%312.0%90.3%-9.3%
% of net operating revenue10.8%10.8%14.9%19.5%27.8%25.7%18.9%15.6%

Quarterly performanceFY03/21FY03/22
(JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4
Operating revenue14,26715,05017,94830,64027,06022,03420,59719,092
YoY8.5%16.8%43.1%109.1%89.7%46.4%14.8%-37.7%
Net operating revenue13,20813,89816,82729,76126,06920,73119,13817,611
YoY11.2%21.9%50.8%119.5%97.4%49.2%13.7%-40.8%
Commissions received8,5068,3328,60011,4269,0759,1639,3389,785
YoY48.7%45.3%40.9%46.2%6.7%10.0%8.6%-14.4%
Brokerage commissions6,5596,0536,1908,0586,1205,9956,2666,428
YoY51.1%39.9%32.7%33.2%-6.7%-1.0%1.2%-20.2%
Equity and ETF4,4144,0294,3605,7133,9413,7883,8943,780
YoY71.4%57.0%41.4%50.5%-10.7%-6.0%-10.7%-33.8%
Futures and options commissions2,1362,0071,7582,1141,9582,0542,2462,540
YoY23.0%14.8%11.6%-6.0%-8.3%2.3%27.8%20.2%
Underwriting and distribution commissions519281127304810
YoY-84.4%-20.8%21.7%-57.7%440.0%57.9%71.4%-9.1%
Subscription and distribution commissions2222273533
YoY-96.6%-96.7%-96.3%-33.3%0.0%250.0%--
Other commissions1,9402,2582,3803,3552,9263,1302,9903,314
YoY50.5%70.7%74.6%93.1%50.8%38.6%25.6%-1.2%
Net trading income1,7822,6635,06414,99513,3858,5065,3473,239
YoY-22.7%36.6%212.0%461.0%651.1%219.4%5.6%-78.4%
Financial income3,7353,7514,0013,9074,2654,0965,3665,159
YoY-24.2%-25.3%-13.7%-2.2%14.2%9.2%34.1%32.0%
Other operating revenue245302284313334138309328
YoY23.7%70.6%59.6%85.2%36.3%-54.3%8.8%4.8%
SG&A expenses11,26411,58711,82515,18515,14815,52218,63719,294
YoY5.6%10.9%15.1%32.6%34.5%34.0%57.6%27.1%
% of net operating revenue85.3%83.4%70.3%51.0%58.1%74.9%97.4%109.6%
Operating profit equivalent1,9442,3115,00214,57610,9215,209501-1,683
YoY60.0%143.0%465.8%592.4%461.8%125.4%-90.0%-
% of net operating revenue14.7%16.6%29.7%49.0%41.9%25.1%2.6%-9.6%
Pre-tax profit1,9912,1614,79212,35211,1077,1621,0101,522
YoY66.5%116.3%451.4%-457.9%231.4%-78.9%-87.7%
% of net operating revenue15.1%15.5%28.5%41.5%42.6%34.5%5.3%8.6%
Profit attributable to owners of the parent1,4251,4943,6297,8067,2604,767435555
YoY67.8%80.0%533.3%928.5%409.5%219.1%-88.0%-92.9%
% of net operating revenue10.8%10.7%21.6%26.2%27.8%23.0%2.3%3.2%
Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Figures that exceed 1,000% YoY are denoted by -. Quarterly performance figures calculated using differences in cumulative quarterly performance.
SG&A breakdown
SG&A breakdown (cumulative)FY03/21FY03/22
(JPYmn)Q1Q1–Q2Q1–Q3Q1–Q4Q1Q1–Q2Q1–Q3Q1–Q4
Total SG&A expenses11,26422,85134,67649,86115,14830,67049,30768,601
YoY5.6%8.2%10.5%16.4%34.5%34.2%42.2%37.6%
Trading-related expenses3,1726,66210,25815,9865,41811,26619,32126,742
YoY10.1%16.6%20.0%33.5%70.8%69.1%88.4%67.3%
Commissions paid1,3132,6754,0195,7541,6603,2414,9387,296
YoY13.2%15.8%19.0%20.4%26.4%21.2%22.9%26.8%
Stock exchange and association fees270506738984227435659936
YoY50.8%40.2%40.3%26.3%-15.9%-14.0%-10.7%-4.9%
Telecom, transportation, and information8221,7112,6323,6011,0082,0153,1544,266
YoY-9.2%-0.2%2.2%4.6%22.6%17.8%19.8%18.5%
Advertising7551,7472,8305,5982,5045,53110,48314,120
YoY35.5%48.4%55.4%108.6%231.7%216.6%270.4%152.2%
Other12233849194386123
YoY-85.0%-85.0%-84.6%-83.0%58.3%87.0%126.3%151.0%
Personnel3,4807,05810,86715,6144,5008,81713,70519,867
YoY3.1%6.1%10.7%16.4%29.3%24.9%26.1%27.2%
Real estate-related1,1332,2173,3654,4701,2102,4453,7605,134
YoY11.3%6.5%7.0%5.7%6.8%10.3%11.7%14.9%
Real estate7914823731385167261365
YoY-22.5%-25.6%-11.9%-7.7%7.6%12.8%10.1%16.6%
Furniture and fixtures1,0542,0693,1284,1571,1252,2783,4984,768
YoY15.1%10.0%8.8%6.9%6.7%10.1%11.8%14.7%
Office expenses5961,2071,7862,4207341,4232,1632,889
YoY-10.9%-4.5%-2.8%-1.0%23.2%17.9%21.1%19.4%
Outsourcing5801,1741,7332,3447061,3702,0842,779
YoY-10.9%-4.4%-2.6%-1.0%21.7%16.7%20.3%18.6%
Supplies17335376295480111
YoY-5.6%-8.3%-7.0%-1.3%70.6%63.6%50.9%46.1%
Depreciation2,0254,0916,0998,1492,0934,1506,1818,417
YoY3.2%1.1%0.9%0.3%3.4%1.4%1.3%3.3%
Taxes and dues2113896071,0233316298721,079
YoY15.9%15.4%20.9%47.6%56.9%61.7%43.7%5.5%
Other6481,2261,6952,1998621,9393,3054,471
YoY11.9%20.3%13.8%12.3%33.0%58.2%95.0%103.3%

SG&A breakdown (quarterly)FY03/21FY03/22
(JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4
Total SG&A expenses11,26411,58711,82515,18515,14815,52218,63719,294


YoY5.6%10.9%15.1%32.6%34.5%34.0%57.6%27.1%


Trading-related expenses3,1723,4903,5965,7285,4185,8488,0557,421



YoY10.1%23.1%27.0%67.0%70.8%67.6%124.0%29.6%



Commissions paid1,3131,3621,3441,7351,6601,5811,6972,358




YoY13.2%18.3%26.2%23.6%26.4%16.1%26.3%35.9%



Stock exchange and association fees270236232246227208224277




YoY50.8%29.7%40.6%-2.8%-15.9%-11.9%-3.4%12.6%



Telecom, transportation, and information8228899219691,0081,0071,1391,112




YoY-9.2%9.9%6.8%11.8%22.6%13.3%23.7%14.8%



Advertising7559921,0832,7682,5043,0274,9523,637




YoY35.5%60.0%68.2%220.7%231.7%205.1%357.2%31.4%



Other1211151119244337




YoY-85.0%-84.9%-83.9%-73.8%58.3%118.2%186.7%236.4%


Personnel3,4803,5783,8094,7474,5004,3174,8886,162



YoY3.1%9.3%20.3%32.0%29.3%20.7%28.3%29.8%


Real estate-related1,1331,0841,1481,1051,2101,2351,3151,374



YoY11.3%2.0%7.9%2.0%6.8%13.9%14.5%24.3%



Real estate79698976858294104




YoY-22.5%-28.9%27.1%8.6%7.6%18.8%5.6%36.8%



Furniture and fixtures1,0541,0151,0591,0291,1251,1531,2201,270




YoY15.1%5.2%6.4%1.6%6.7%13.6%15.2%23.4%


Office expenses596611579634734689740726



YoY-10.9%2.7%1.0%4.4%23.2%12.8%27.8%14.5%



Outsourcing580594559611706664714695




YoY-10.9%2.9%1.3%4.1%21.7%11.8%27.7%13.7%



Supplies1716202329252631




YoY-5.6%-11.1%-4.8%15.0%70.6%56.3%30.0%34.8%


Depreciation2,0252,0662,0082,0502,0932,0572,0312,236



YoY3.2%-0.9%0.4%-1.2%3.4%-0.4%1.1%9.1%


Taxes and dues211178218416331298243207



YoY15.9%14.8%32.1%117.8%56.9%67.4%11.5%-50.2%


Other6485784695048621,0771,3661,166



YoY11.9%31.4%-0.2%7.2%33.0%86.3%191.3%131.3%
Source: Shared Research based on company data
Note. Figures may differ from company materials due to differences in rounding methods.
Note: Figures that exceed 1,000% YoY are denoted by -.
Note: Quarterly performance figures calculated using differences in cumulative quarterly performance.
Results by segment (Japan, US, and Asia-Pacific segments)
CumulativeQ1–Q4 FY03/21Q1 FY03/22Q1-Q2 FY03/22Q1-Q3/FY03/22FY03/22Q1–Q4
(JPYmn)JapanUSAPJapanUSAPJapanUSAPJapanUSAPJapanUSAP
Operating revenue30,96325,3751,6137,7516,38532315,59412,55064523,71919,83494231,86527,2141,225
YoY17.3%7.3%81.8%6.5%6.5%-0.9%8.6%5.1%-10.8%7.5%10.7%-13.1%2.9%7.2%-24.1%
Commissions received17,81217,9881,0794,0834,4262018,2368,77240312,48513,46458816,97818,583771
YoY41.2%46.6%137.7%-3.2%6.6%-2.9%1.3%5.2%-13.1%0.6%7.9%-16.0%-4.7%3.3%-28.5%
Brokerage commissions15,29411,3211,0713,3252,6892006,5785,3324019,9438,16158613,18911,286769
YoY48.6%28.1%137.5%-11.0%-2.3%-2.9%-6.6%-1.4%-13.0%-7.2%3.2%-15.6%-13.8%-0.3%-28.2%
Equity and ETF14,9633,3481,0713,2725742006,4651,0774019,7581,61258612,9202,177769
Futures and options3317,685-521,906-1123,900-1836,074-2668,531-
Cryptocurrencies (exchange)-288--210--357--476--579-
Underwriting and distribution commissions63--27--57--105--115--
Subscription and distribution8--2--9--44--77--
Other commissions2,4476,66687301,73711,5923,43922,3945,30323,5987,2962
YoY20.0%94.3%300.0%53.7%24.2%0.0%50.3%17.3%-33.3%46.4%16.0%-66.7%47.0%9.5%-75.0%
Net trading income4,552--1,217--2,652--3,557--4,350--0
YoY-9.5%--17.2%--28.4%--7.7%---4.4%--
Financial income8,4686,3091662,4141,727324,6333,347657,4775,7659910,1567,773131
YoY-2.1%-36.7%-40.7%20.8%8.3%-30.4%13.1%9.2%-28.6%19.4%24.0%-19.5%19.9%23.2%-21.1%
Other operating revenue1301,051368371959074389178200559255381727323
Financial expenses1,8642,394937862518401,32121,1042,54021,4273,5203
Net operating revenue29,09922,9581,6047,3735,72832314,75411,19264422,61517,25494030,43823,5791,222
YoY19.5%15.4%153.0%8.3%7.5%-0.3%10.7%4.9%-10.3%10.0%7.3%-12.6%4.6%2.7%-23.8%
SG&A expenses24,13719,7711,1456,0365,92524812,11712,76051118,45921,32578425,25129,5871,083
YoY11.4%10.6%27.5%4.5%23.7%-6.1%4.1%33.8%-4.5%4.7%49.4%-1.5%4.6%49.6%-5.4%
% of net operating revenue82.9%86.1%71.4%81.9%103.4%76.8%82.1%114.0%79.3%81.6%123.6%83.4%83.0%125.5%88.6%
Operating profit equivalent4,9623,1874591,337-197742,637-1,5671324,156-4,0711565,187-6,008139
YoY85.8%58.6%-29.3%-23.3%57.0%--27.5%42.4%--44.3%4.5%--69.7%
% of net operating revenue17.1%13.9%28.6%18.1%-22.9%17.9%-20.5%18.4%-16.6%17.0%-11.4%
Other revenue2,75236628802123,432559374,024952387,8041,14956
Other expenses43724377-1012276792373689241,02669824
Pre-tax profit7,2753,2005182,139-185865,841-1,6871687,806-3,80817011,964-5,558171
YoY223.3%81.4%-86.5%-30.3%241.2%--21.9%146.6%--46.9%64.5%--67.0%
% of net operating revenue25.0%13.9%32.3%29.0%-26.6%39.6%-26.1%34.5%-18.1%39.3%-14.0%
Profit4,7852,5234171,399-350693,868-1,5031375,181-3,1441278,015-5,024131
YoY247.0%77.9%-88.8%-35.3%259.1%--22.2%147.8%--51.3%67.5%--68.6%
Profit attributable to owners of the parent4,7542,5234171,374-350693,832-1,5031375,124-3,1441278,000-5,024-417
YoY203.0%77.9%-83.9%-35.3%254.2%--22.2%145.3%--51.3%68.3%--
% of net operating revenue16.3%11.0%26.0%18.6%-21.4%26.0%-21.3%22.7%-13.5%26.3%--

Quarterly performanceQ4 FY03/21Q1 FY03/22Q2 FY03/22Q3/ FY03/22FY03/22Q4
(JPYmn)JapanUSAPJapanUSAPJapanUSAPJapanUSAPJapanUSAP
Operating revenue8,9027,4575297,7516,3853237,8436,1653228,1257,2842978,1467,380283
YoY22.5%18.6%85.0%6.5%6.5%-0.9%10.9%3.7%-18.7%5.5%21.8%-17.7%-8.5%-1.0%-46.5%
Commissions received5,4075,5113794,0834,4262014,1534,3462024,2504,6931854,4935,118183
YoY41.6%43.5%114.1%-3.2%6.6%-2.9%6.0%3.7%-21.4%-0.5%13.5%-21.6%-16.9%-7.1%-51.7%
Brokerage commissions4,5823,4163773,3252,6892003,2532,6432013,3652,8291853,2463,125183
YoY38.9%27.4%113.0%-11.0%-2.3%-2.9%-1.8%-0.5%-21.2%-8.2%13.3%-20.6%-29.2%-8.5%-51.5%
Equity and ETF4,5091,1663773,2725742003,1935032013,2935351853,162565183
Futures and options732,041-521,906-601,994-712,174-832,457-
Cryptocurrencies (exchange)-209--210--147--119--103-
Underwriting and distribution commissions11--27--30--48--10--
Subscription and distribution2-2-7--35--33-
Other commissions8122,09527301,73718621,70218021,864-1,2041,993-
YoY65.0%80.6%-53.7%24.2%0.0%47.6%11.0%-50.0%39.2%13.7%-48.3%-4.9%-
Net trading income1,248--1,217--1,435--905--0793--
YoY-17.1%--17.2%--39.6%---26.9%---36.5%--
Financial income2,2041,662432,4141,727322,2191,650332,8442,418342,6792,00732
YoY15.0%-20.6%-35.8%20.8%8.3%-30.4%5.7%12.2%-26.7%31.4%52.7%6.3%21.6%20.8%-25.6%
Other operating revenue43278107371959037194871261707818116868
Financial expenses3585732378625146269612641,219-3239801
Net operating revenue8,5446,8805287,3735,7283237,3815,4643217,8616,0622967,8236,325282
YoY25.3%26.2%89.9%8.3%7.5%-0.3%13.3%2.2%-18.5%8.7%12.1%-17.5%-8.4%-8.1%-46.6%
SG&A expenses6,5015,4983496,0365,9252486,0816,8352636,3428,5652736,7928,262299
YoY10.9%11.0%37.9%4.5%23.7%-6.1%3.6%43.9%-3.3%5.8%80.9%4.6%4.5%50.3%-14.3%
SG&A as % of net operating revenue76.1%79.9%66.1%81.9%103.4%76.8%82.4%125.1%81.9%80.7%141.3%92.2%86.8%130.6%106.0%
Operating profit equivalent2,0431,3821791,337-197741,300-1,371581,519-2,503231,031-1,938-17
YoY113.3%175.8%616.0%29.3%-23.3%101.2%--52.5%22.6%--76.5%-49.5%--
OP equivalent as % of net operating revenue23.9%20.1%33.9%18.1%-22.9%17.6%-18.1%19.3%-7.8%13.2%--
Other revenue2,07018148802122,5525572559239313,78019718
Other expenses37-577-101150689114610226539-0
Pre-tax profit4,1091,3931982,139-185863,702-1,502821,965-2,12124,158-1,7501
YoY787.5%390.5%382.9%86.5%-30.3%555.2%--45.0%35.1%--98.1%1.2%--99.5%
% of net operating revenue48.1%20.2%37.5%29.0%-26.6%50.2%-25.5%25.0%-0.7%53.2%-0.4%
Profit2,6941,1891561,399-350692,469-1,153681,313-1,641-102,834-1,8804
YoY897.8%612.0%387.5%88.8%-35.3%634.8%--45.6%29.5%--5.2%--97.4%
Profit attributable to owners of the parent2,6651,1891561,374-350692,458-1,153681,292-1,641-102,876-1,880-544
YoY727.6%612.0%387.5%83.9%-35.3%633.7%--45.6%28.3%--7.9%--
% of net operating revenue31.2%17.3%29.5%18.6%-21.4%33.3%-21.2%16.4%--36.8%--
Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Figures that exceed 1,000% YoY are denoted by -.
Note: Cumulative quarterly performance calculated as the total of quarterly results.
Results by segment (Crypto Asset and Investment segments)
CumulativeQ1–Q4 FY03/21Q1 FY03/22Q1-Q2 FY03/22Q1-Q3/FY03/22FY03/22Q1–Q4
(JPYmn)Crypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestment
Operating revenue20,82667212,73914120,45042625,50156228,6731,078
YoY445.9%351.0%--16.6%688.7%18.7%286.8%-10.5%37.7%60.4%
Commissions received852-471-1,043-1,374-1,495-
YoY195.8%-572.9%-394.3%-257.8%-75.5%-
Brokerage commissions40-12-19-27-32-
YoY-20.0%-140.0%-171.4%-50.0%--20.0%-
Equity and ETF----------
Futures and options----------
Cryptocurrencies (exchange)40-12-19-27-32-
Underwriting and distribution commissions----------
Subscription and distribution----------
Other commissions812-459-1,024-1,347-1,463-
YoY241.2%-606.2%-402.0%-268.0%-80.2%-
Net trading income19,960-12,171-19,245-23,692-26,143-
YoY465.6%-1,533.7%-708.3%-281.6%-31.0%-
Financial income-672-141-426-562-1,078
YoY-351.0%--16.6%-18.7%--10.5%-60.4%
Other operating revenue14-98-31-67-86-
Financial expenses4163140225833201613
Net operating revenue20,82350912,73910120,43416825,46124228,621465
YoY446.2%241.6%--40.2%688.0%-46.3%286.4%-47.0%37.4%-8.6%
SG&A expenses7,129723,752256,6864310,5966814,90989
YoY103.6%33.3%423.3%31.6%276.5%16.2%239.2%21.4%109.1%23.6%
% of net operating revenue34.2%14.1%29.5%24.8%32.7%25.6%41.6%28.1%52.1%19.1%
Operating profit equivalent13,6924398,9877613,74812514,86617413,713376
YoY-367.0%--49.7%--54.9%329.0%-56.8%0.2%-14.4%
% of net operating revenue65.8%86.2%70.5%75.2%67.3%74.4%58.4%71.9%47.9%80.9%
Other revenue6810-87-87-0141-0
Other expenses3,83181-8-9--18-
Pre-tax profit9,8674378,9967613,82712514,94317313,871375
YoY-364.9%--49.3%--54.7%359.8%-56.9%40.6%-14.2%
% of net operating revenue47.4%85.9%70.6%75.2%67.7%74.4%58.7%71.5%48.5%80.6%
Profit6,4701936,148239,4897710,2511109,707227
YoY-310.6%--73.9%--43.8%283.5%-42.7%50.0%17.6%
Profit attributable to owners of the parent6,4701936,148239,4897710,2511109,707227
YoY-310.6%--73.9%--43.8%283.5%-42.7%50.0%17.6%
% of net operating revenue31.1%37.9%48.3%22.8%46.4%45.8%40.3%45.5%33.9%48.8%

Quarterly performanceQ4 FY03/21Q1 FY03/22Q2 FY03/22Q3/ FY03/22FY03/22Q4
(JPYmn)Crypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestment
Operating revenue14,2334412,7391417,7112855,0511363,172516
YoY-51.7%--16.6%333.7%50.0%26.3%-49.4%-77.7%-
Commissions received468-471-572-331-121-
YoY431.8%-572.9%-305.7%-91.3%--74.1%-
Brokerage commissions22-12-7-8-5-
YoY450.0%-140.0%-250.0%--27.3%--77.3%-
Equity and ETF----------
Futures and options----------
Cryptocurrencies (exchange)22-12-7-8-5-
Underwriting and distribution commissions----------
Subscription and distribution----------
Other commissions446-459-565-323-116-
YoY431.0%-606.2%-306.5%-99.4%--74.0%-
Net trading income13,751-12,171-7,074-4,447-2,451-
YoY----332.4%-16.2%--82.2%-
Financial income-44-141-285-136-516
YoY-51.7%--16.6%-50.0%--49.4%--
Other operating revenue14-98--67-36-19-
Financial expenses1-81401218162-2293
Net operating revenue14,2335212,7391017,695675,027743,160223
YoY-79.3%--40.2%334.0%-53.5%25.8%-48.6%-77.8%328.8%
SG&A expenses4,005163,752252,934183,910254,31321
YoY305.8%14.3%423.3%31.6%177.1%0.0%190.1%31.6%7.7%31.3%
SG&A as % of net operating revenue28.1%30.8%29.5%24.8%38.1%26.9%77.8%33.8%136.5%9.4%
Operating profit equivalent10,227368,987764,761491,11849-1,153202
YoY-140.0%--49.7%566.8%-61.1%-57.8%-61.1%-461.1%
OP equivalent as % of net operating revenue71.9%69.2%70.5%75.2%61.9%73.1%22.2%66.2%-90.6%
Other revenue-1810-77--0-054-
Other expenses3,61081-7-1--27-
Pre-tax profit6,617368,996764,831491,11648-1,072202
YoY-140.0%--49.3%566.3%-61.1%-53.9%-61.6%-461.1%
% of net operating revenue46.5%69.2%70.6%75.2%62.8%73.1%22.2%64.9%-90.6%
Profit3,79716,148233,3415476233-544117
YoY----73.9%478.0%10.2%-61.6%-40.0%--
Profit attributable to owners of the parent3,79716,148233,3415476233-544117
YoY----73.9%478.0%10.2%-61.6%-40.0%--
% of net operating revenue26.7%1.9%48.3%22.8%43.4%80.6%15.2%44.6%-52.5%
Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Figures that exceed 1,000% YoY are denoted by -.
Note: Cumulative quarterly performance calculated as the total of quarterly results.
SG&A expenses by segment (Japan, US, and Asia-Pacific segments)
CumulativeQ1–Q4 FY03/21Q1 FY03/22Q1-Q2 FY03/22Q1-Q3/FY03/22FY03/22Q1–Q4
(JPYmn)JapanUSAPJapanUSAPJapanUSAPJapanUSAPJapanUSAP
Total SG&A expenses24,13719,7711,1456,0365,92524812,11712,76051118,45921,32578425,25129,5871,083
YoY11.4%10.6%27.5%4.5%23.7%-6.1%4.1%33.8%-4.5%4.7%49.4%-1.5%4.6%49.6%-5.4%
Trading-related expenses6,6497,0483741,5482,053733,2314,6851504,9578,6612387,20712,527338
YoY30.2%15.6%37.0%9.6%24.0%-13.1%8.1%38.9%-13.8%6.1%71.1%-7.8%8.4%77.7%-9.6%
Commissions paid2,5543,545125544937141,1311,859261,7852,790422,9823,96755
Stock exchange and association fees841143018245035184053612307152210
Telecom, transportation, and information1,6611,50211440943229822862581,3211,300881,7451,775119
Advertising1,5711,849135407631299121,862651,2874,4101071,7246,509163
Other2280680141902738040560
Personnel5,3307,6615351,3472,2311252,6464,6302564,1057,3383815,5229,924511
YoY18.2%6.2%33.8%11.2%20.6%6.8%8.8%27.4%5.3%7.9%34.5%4.4%3.6%29.5%-4.5%
Real estate-related3,6041,1461792934941,87872292,8471,154133,9051,55619
YoY-3.3%22.6%0.0%-1.8%30.7%-20.0%1.6%37.5%0.0%3.6%39.5%0.0%8.4%35.8%11.8%
Real estate18311612453239060614986921611214
Furniture and fixtures3,4201,028588331711,78766232,6971,06843,6881,4445
Office expenses1,99230585351281,01622211,53832372,0594861
YoY0.7%3.4%16.0%2.9%100.0%-50.0%-2.1%100.0%-25.0%2.0%60.0%-9.8%3.4%60.0%5.2%
Outsourcing1,948056519079850191,4920352,000057
Supplies4330416121302224532358485
Depreciation5,2342,4291161,316653282,6031,297543,8851,916815,1072,603108
YoY4.5%-3.1%-2.5%1.8%7.0%-3.4%-1.5%7.8%-6.9%-1.3%6.2%-5.8%-2.4%7.2%-6.9%
Taxes and dues75441019380413150620230802320
Other5741,41744169619113321,388225082,200346502,89746
Quarterly performanceQ4 FY03/21Q1 FY03/22Q2 FY03/22Q3/ FY03/22FY03/22Q4
(JPYmn)JapanUSAPJapanUSAPJapanUSAPJapanUSAPJapanUSAP
Total SG&A expenses6,5015,4983496,0365,9252486,0816,8352636,3428,5652736,7928,262299
YoY10.9%11.0%37.9%4.5%23.7%-6.1%3.6%43.9%-3.3%5.8%80.9%4.6%4.5%50.3%-14.3%
Trading-related expenses1,9781,9851161,5482,053731,6832,632771,7263,976882,2503,866100
YoY30.6%12.2%39.8%9.6%24.0%-13.1%6.7%53.2%-14.4%2.6%135.4%4.8%13.8%94.8%-13.8%
Commissions paid817965425449371458792212654931161,1971,17713
Stock exchange and association fees210360182450169390185390179980
Telecom, transportation, and information4303982940943229413430294994383042447531
Advertising51758345407631295051,231363752,548424372,09956
Other42068081101319013180
Personnel1,5242,2041701,3472,2311251,2992,3991311,4592,7081251,4172,586130
YoY26.8%11.1%51.8%11.2%20.6%6.8%6.3%34.5%4.0%6.3%48.5%2.5%-7.0%17.3%-23.5%
Real estate-related85731949293494949373596943241,0584026
YoY-10.9%22.7%0.0%-1.8%30.7%-20.0%5.2%44.6%25.0%7.8%43.0%0.0%23.5%26.0%50.0%
Real estate4724345323452835926367265
Furniture and fixtures81029418833171904345291040619913761
Office expenses4841017535128481101352210165211624
YoY-6.4%42.9%13.3%2.9%100.0%-50.0%-7.1%100.0%8.3%11.1%11.1%23.1%7.6%60.0%41.2%
Outsourcing47201651907466012507016508022
Supplies1210116121141011510113162
Depreciation1,297625301,316653281,287644261,282619271,22268727
YoY-1.5%-1.7%3.4%1.8%7.0%-3.4%-4.7%8.6%-10.3%-0.9%3.0%-3.6%-5.8%9.9%-10.0%
Taxes and dues25311019380220702078018290
Other1073441116961911163769111768121214269712
YoY-38.9%19.0%10.0%-18.4%58.3%-8.3%10.9%100.8%0.0%55.8%171.6%20.0%32.7%102.6%9.1%
Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Figures that exceed 1,000% YoY are denoted by -.
Note: Cumulative quarterly performance calculated as the total of quarterly results.
Note: Depreciation for US and Asia-Pacific segments include depreciation of identified intangible assets at the time of acquisition of TradeStation Group and Monex Boom Securities Group.
SG&A expenses by segment (Crypto Asset and Investment segments)
CumulativeQ1–Q4 FY03/21Q1 FY03/22Q1-Q2 FY03/22Q1-Q3/FY03/22FY03/22Q1–Q4
(JPYmn)Crypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestmentCrypto AssetInvestment
Total SG&A expenses7,129723,752256,6864310,5966814,90989
YoY103.6%33.3%423.3%31.6%276.5%16.2%239.2%21.4%109.1%23.6%
Trading-related expenses2,87771,85423,42235,80967,1527
YoY268.4%-30.0%971.7%-33.3%629.6%-25.0%584.2%0.0%148.6%0.0%
Commissions paid48522701439265337553
Stock exchange and association fees--