Japan Exchange Group (8697) Q1 2025 earnings summary

Executive summary

• Operating revenue for Q1 FY2024 rose 9.1% year-over-year to ¥40,328 million, driven by higher trading and information services revenue.

• Operating income fell 7.0% year-over-year to ¥23,291 million, and net income attributable to owners dropped 11.1% to ¥15,768 million.

• Growth in trading value of cash equities and increased market information fees contributed to revenue gains.

Financial highlights

• Trading services revenue increased 8.2% year-over-year to ¥16,354 million, with cash equities transaction fees up 16.5%.

• Clearing services revenue rose 7.9% to ¥8,602 million; listing services revenue up 3.5% to ¥3,754 million.

• Information services revenue grew 14.1% to ¥8,146 million; other operating revenue up 12.3% to ¥3,470 million.

• Operating expenses increased 2.2% year-over-year to ¥17,510 million, with personnel expenses up 13.0%.

• Basic EPS for Q1 FY2024 was ¥30.31, down from ¥34.08 a year earlier.

Outlook and guidance

• FY2025 operating revenue forecast at ¥152,000 million (down 0.6% year-over-year), with net income attributable to owners projected at ¥53,500 million (down 12.0%).

• Basic EPS forecast for FY2025 is ¥51.43, reflecting a 2-for-1 stock split effective October 1, 2024.

• Dividend policy targets a payout ratio of ~60%, with a forecast total dividend of ¥31.00 per share post-split.