Monex Group (8698) Q1 2025 earnings summary

Executive summary

• Achieved stable consolidated profit of ¥2.5B in 1Q FYE Mar. 2025, driven by strong Japan and US brokerage businesses despite lower crypto market volatility.

• TradeStation posted record-high quarterly revenue and profit; Coincheck maintained profitability with IEO revenues offsetting lower trading income.

• Operating income rose to ¥19,244 million for 1Q FY2025, up from ¥15,836 million year-over-year, reflecting strong performance in core businesses.

• Monex, Inc. and its intermediate holding company were reclassified as equity-method affiliates after a share transfer to NTT DOCOMO, with their results now shown as discontinued operations.

• Announced share buyback of up to ¥5B and continued commitment to growth investments and optimizing business portfolio.

Financial highlights

• Consolidated operating revenue after deducting financial expenses was ¥16.96B, down 3% QoQ and 16% YoY.

• Quarterly profit attributable to owners was ¥2.47B, up from ¥2.41B year-over-year.

• US segment achieved record revenue and profit in both USD and JPY terms.

• Crypto asset segment revenue rose 164% YoY to ¥3.1B, with IEO revenues offsetting lower trading income.

• Total assets grew to ¥785,222 million as of June 30, 2024, from ¥761,642 million at March 31, 2024.

Outlook and guidance

• Focus on sustainable profit growth and increased corporate value through cost of capital-conscious management.

• Ongoing growth investments in asset management and technology, leveraging funds from business portfolio optimization.

• The company plans to repurchase up to 14 million shares (5.43% of outstanding shares) for up to ¥5 billion between July 29, 2024, and June 30, 2025.