Japan Exchange Group (8697) Q2 2025 earnings summary

Executive summary

• Operating revenue rose 11.5% year-over-year to ¥81.8 billion for Q2 FY2024, driven by higher trading, clearing, listing, and information services revenue from increased cash equity trading and market information demand.

• Net income increased 2.8% year-over-year to ¥32.3 billion, as revenue growth outpaced a modest 2.0% rise in operating expenses.

• Cash equities average daily trading value surged 26.9% year-over-year, while derivatives trading volumes showed mixed trends.

• A 2-for-1 stock split was executed on October 1, 2024, with all per-share figures adjusted accordingly.

Financial highlights

• Operating income for Q2 FY2024 was ¥47.7 billion, up 7.2% year-over-year; income before tax also up 7.2% to ¥47.7 billion.

• EBITDA for the period reached ¥56.9 billion, a 6.1% increase year-over-year.

• Trading services revenue grew 13.2% year-over-year to ¥33.5 billion, with cash equities transaction fees up 19.9%.

• Listing services revenue rose 9.5% year-over-year, supported by higher ETF AUM.

• Information services revenue increased 10.2% year-over-year to ¥16.0 billion, driven by index licensing and market data usage.

Outlook and guidance

• FY2024 operating revenue, operating income, and net income are all forecast to exceed previous guidance, with the latest revision projecting operating revenue of ¥159.0 billion and net income of ¥58.0 billion.

• Basic earnings per share forecast at ¥55.75 (stock split adjusted); dividend forecast unchanged, with a payout ratio target of 60%.

• Average daily trading value for cash equities is forecast at ¥5.4 trillion, up 8.1% year-over-year.

• The number of IPOs at TSE declined to 53 from 57 in the same period last year.

• Forecast revision reflects higher trading value assumptions for stocks and derivatives.