GMO Financial Sees Strong Revenue, Earning with Crypto Trading Boom
GMO Financial Holdings, a subsidiary of Japanese conglomerate GMO Internet, released its preliminary consolidated financial results for the first nine months of the year, ending on September 30, showing substantial gains across revenue and profits.
The operating revenue of the company in the period skyrocketed to more than 33 billion yen, which is 18.4 percent higher than the previous year. It generated 12.4 billion yen as operating income and another 12.7 billion as ordinary income, both of which jumped by 22 percent and 27.9 percent, respectively.
The profit of the Japanese company in the nine months surged by 25.8 percent to 7.8 billion yen.
GMO Financial’s offerings include trading services with over-the-counter (OTC) forex and contracts for difference (CFDs) instruments. It also started to offer cryptocurrencies trading amid huge demand for the asset class among retail traders.
“For the nine months ended September 30, 2021, the trading volume and revenue of OTC-FX and CFDs decreased compared to the same period last year, which saw a volatile market due to the rapid market fluctuations,” the announcement added.
“However, operating revenue increased by 18.4% YoY mainly because the trading volume of and the revenues related to the transactions of crypto assets increased significantly amid the volatile crypto assets market.”
Additionally, GMO revealed that it ran rampant advertisement and marketing campaigns since the second quarter to promote its crypto trading business.
“While selling, general and administrative expenses, especially advertising and promotion costs, increased due to aggressive marketing measures, such as TV commercials conducted since Q2 in the crypto assets business, which saw strong trends, operating income, ordinary income, and profit attributable to owners of the parent increased compared to the same period last year,” the company added.
Last month, the Japanese financial services company decided to re-purchase 4.07 percent of the total outstanding shares from Daiwa Securities Group.
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