After Weak Q1 JPX Sees Sluggish Performance in H1 FY 2020

Operating revenue for H1 of fiscal 2020 fell by 2.2 percent.

After reporting a weak start to its 2020 fiscal year, the Japan Exchange Group, Inc. (JPX) has published its unaudited financial results for the six months ended September 30, 2019, this Wednesday.

The six-month period, which ranges from April 1, 2019, to September 20, 2019, represents the first half of JPX’s 2020 fiscal year, which ends on March 31, 2020. As Finance Magnates reported, the company reported a weak first quarter to the fiscal year back in July, and it appears the same can be said for the company’s first half of fiscal 2020.

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Operating revenue for H1 of fiscal 2020 was ¥57.9 billion ($531.9 million). Comparing this with the first half of the 2019 fiscal year, which achieved operating revenue of ¥59.2 billion, the most recent period’s figure has fallen by 2.2 percent.

Operating income didn’t fare much better. In fact, operating income dropped by 7.2 percent year-on-year, falling from ¥34.4 billion in H1 of fiscal 2019, down to ¥31.9 billion in the first half of fiscal 2020.

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In fact, all of the key financial indicators for JPX declined on an annual comparison – net income, income before income tax, and more. Specifically, net income fell by 9.2 percent to reach ¥22.0 billion, and income before income tax declined by 8.8 percent.

Moving onto trading service revenue, which is made up of “Transaction Fees,” “Basic Fees,” “Access Fees,” and “Trading System Facilities Usage Fees.” During the consolidated cumulative second quarter, trading services revenue dipped 7.2 percent year-on-year to around ¥22.0 billion. According to the report, this was mainly due to a decrease in transaction fees, as the trading of cash equities fell on a yearly comparison.

JPX appoints directors for TOCOM

On the same day that it released its financial report, JPX has also announced a series of changes to its personnel. Because JPX’s subsidiary, the Tokyo Commodity Exchange, Inc. (TOCOM) will transition from a company with nominating committees, etc., to a company with a board of auditors effective on December 1, 2019, JPX has decided to appoint a suite of directors to the subsidiary.

Joining TOCOM as a director is Hiromi Yamaji, who will take on the position of Representative Director & Chair, Chairperson of the Board, the statement said. Yamaji will hold this role in addition to Director and Executive Officer of JPX and President & CEO of Osaka Exchange, Inc.

Takamichi Hamada has been named as Representative Director, President of TOCOM, which he will serve concurrently to his role as Executive Officer of JPX. Hiroyasu Ichimoto has been hired as a Director & Senior Executive Officer, and Mitsuhiro Onosato as an Executive Officer.

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