Traders Holdings (8704) Q2 2025 earnings summary

Executive summary

• Achieved record semiannual operating revenues and operating income, with operating income approximately 2.3 times higher year-over-year, driven by strong FX trading activity and market volatility despite customer losses in high-interest rate currencies.

• Net operating revenue increased 68.3% year-over-year to 7,605 million yen, and profit attributable to owners of parent surged 91.7% year-over-year to 2,885 million yen.

• Customer assets under custody grew in 1Q but declined in 2Q due to sharp yen appreciation and loss cuts, resulting in a slight decrease for the first half.

• Selected for the JPX-Nikkei Mid and Small Cap Index for the second consecutive year, reflecting high investment attractiveness.

• The business benefited from increased FX trading volumes, while system development revenues from external customers declined.

Financial highlights

• 1H FY2025/3 operating revenue: 7,657 million yen (+65.9% QoQ), operating income: 4,273 million yen (+129.4% QoQ), and ordinary profit up 132.1% to 4,284 million yen.

• Quarterly net income for 2Q: 1,400 million yen (+624.9% QoQ), with a profit margin of 33.8%.

• Net assets increased by 2,123 million yen to 16,245 million yen, reflecting higher profits and treasury share transactions.

• Cash and cash equivalents rose by 2,768 million yen to 11,589 million yen at period end.

• SG&A expenses increased 25.4% year-over-year, mainly due to higher advertising, personnel, and trading-related expenses, including a one-time personnel expense of 250 million yen.

Outlook and guidance

• Progress toward full-year plan is high: 64.9% for operating revenue, 85.5% for operating income, 85.7% for ordinary income, and 84.9% for net income at 1H.

• Full-year forecast remains unchanged at 11,800 million yen in revenue and 5,000 million yen in operating profit, due to uncertainty about 2H volatility and decreased assets under custody; possible revision after 3Q.

• Dividend forecast for the year is 24 yen per share, with the year-end dividend yet to be determined.

• Targeting 115 billion yen in assets under custody by year-end, with new marketing and customer acquisition measures planned.