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 increased cash equity trading and higher information services revenue.

• Net income declined 11.1% year-over-year to ¥15,768 million due to the absence of prior-year asset sales and higher operating expenses.

• Operating income fell 7.0% year-over-year to ¥23,291 million.

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

• The Japanese stock market remained active, supporting revenue growth despite increased costs.

Financial highlights

• Q1 FY2024 operating revenue: ¥40,328 million (+9.1% YoY); operating expenses: ¥17,510 million (+2.2% YoY).

• Operating income: ¥23,291 million (−7.0% YoY); net income: ¥15,768 million (−11.1% YoY).

• EBITDA for Q1 FY2024: ¥27,962 million (−5.9% YoY).

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

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

Outlook and guidance

• FY2024 forecast unchanged: operating revenue expected to remain flat year-over-year.

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

• Operating expenses projected to rise 2.7% YoY due to the launch of a new trading system in November 2024.

• Operating income and net income forecast to decrease by 9.7% and 12.0% YoY, respectively.

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