Japan-based online securities broker, Kabu has announced the first quarter preliminary earnings report for the fiscal ending March 31st 2019. The broker is a subsidiary of Mitsubishi UFJ Financial Group, has reported stronger Q1 earnings but operating revenues declined over the year.
According to the preliminary earnings report, the operating results are expected to increase on the back of decreasing primary expenses during the first quarter of the fiscal. The operating revenue during the quarter was reported at $52 million (5.8 billion yen) which is slightly lower from $53.8 million (5.97 billion yen) or 3.2 per cent from the first quarter of last fiscal year.
Net revenue during the quarter increased year-over-year, with $44.5 million (4.9 billion yen) reported in the first quarter as against $42.7 million (4.7 billion yen) in the first quarter of the last fiscal year, an increase of 4.2 per cent Y-o-Y. Operating income during the quarter came in at $19.2 million (2.1 billion), an impressive growth of 78.9 per cent from $10.7 million when compared to the same period year ago. The increase was mostly due to the decline in preliminary expenses on account of less marketing expenses.
The firm also reported impressive growth in ordinary income of 80.2 per cent year-on-year to $19 million (2.1 billion yen) against $10.9 million (1.2 billion yen) in the first quarter. And finally, net income reported an increase of 8.5 per cent coming in at $13.9 million (1.5 billion yen) against $12.8 million (1.4 billion yen) in the first quarter of last fiscal.
The broker will release its report of settlement of accounts for the first quarter of the fiscal year ending on March 2019 on Wednesday, July 25th and also said that the above-reported earnings report could change depending on the market condition.