Japan Exchange Group (8697) Q2 2027 earnings summary

Executive summary

• H1 operating revenue rose 46.7% YoY to ¥131,002 million; operating income increased 65.1% to ¥84,668 million and parent-attributable net income rose 65.6% to ¥57,210 million.

• Strong cash-equity trading and clearing activity, alongside income from interest-rate-swap collateral assets, drove growth; expenses also increased as more collateral-related revenue was returned to clearing participants.

Financial highlights

• H1 operating expenses rose 24.0% to ¥48,270 million; excluding deposited-collateral-asset expenses, they were ¥39,061 million, up 8.0%.

• Income before tax increased 66.0% to ¥85,469 million; net income was ¥58,529 million and basic EPS was ¥55.95, versus ¥33.46 a year earlier.

• H1 EBITDA grew 55.9% to ¥94,583 million; excluding deposited-collateral-asset revenue, operating revenue was ¥115,909 million, up 38.0%.

• Total assets declined ¥13,620,071 million to ¥57,979,495 million, mainly due to lower clearing business financial assets; excluding specified clearing-related items, assets rose ¥4,384 million to ¥458,046 million.

Outlook and guidance

• FY2027 forecast: operating revenue ¥252,500 million, operating expenses ¥100,000 million, operating income ¥154,500 million, income before tax ¥156,500 million and parent-attributable net income ¥105,000 million; unchanged from the September 24 revision.

• Forecast basic EPS is ¥102.88; annual dividend forecast is ¥82 per share, comprising ¥41 at Q2 and ¥41 at year-end.

• Average daily trading assumptions include cash equities of ¥11 trillion, Nikkei 225 options value of ¥38.5 billion and 10-year JGB futures volume of 52,000 contracts.