JPX Reports 12.4% YoY Uptick in Operating Revenue in Q1

The Japan Exchange Group, Inc. (JPX) joins the growing list of companies to publish their financial results, with the exchange operator revealing its financial performance for the three months ended on the 30th of June 2020 this Wednesday.

JPX operates multiple securities exchanges in Japan, including the Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange (OSE). The three month period forms the first quarter of JPX’s 2021 fiscal year, which ends on the 31st of March 2021. 

Across the first quarter of the company’s 2021 fiscal year, the exchange operator has seen a yearly uptick across its key metrics. Namely, operating revenue for the period was ¥32.67 billion. 

In the first quarter of the exchange operator’s 2020 fiscal year, JPX reported ¥29.07 billion in operating revenue. Therefore, the operating revenue posted in Q1 of fiscal 2021 is stronger by 12.4 per cent.

Trading of cash equities boosts revenues for JPX

“Revenues from trading services and clearing services increased due to increases in trading of cash equities and financial derivatives, as well as the addition of the commodity derivatives consolidated from TOCOM,” JPX said in its financial report today.

Operating income has increased by 13.0 per cent on a yearly comparison, climbing from ¥16.25 billion in Q1 of fiscal 2020 up to ¥18.37 billion in the three months ended on the 30th of June 2020.

Income before income tax increased by 12.3 per cent and net income was ¥12.26 billion. This is stronger than the same period of the previous year by 12.3 per cent.

Looking to the future, JPX expects to report an overall decline in its metrics for the full year ended on March 31st 2021. In particular, the company forecasts operating revenue of ¥121.5 billion, which is 1.8 lower year on year.

The exchange operator also forecasts a 9.5 per cent decline in operating income and a 10.8 per cent fall in net income. Income before tax is also anticipated to drop by 10.1 per cent.