Tokyo Stock Exchange: board report for July 2009

Tokyo Stock Exchange: Board Report For July 2009


1st Quarter Financial Results for FY ending March 2010

The following is a breakdown of the 1st quarter financial results of Tokyo Stock Exchange Group, Inc. for the fiscal year ending March 2010.

Listing-related revenue was up 31% from the same period of the previous year due to an increase in listing fees, which was caused by a series of large-scale capital increases through public offerings by listed companies. However, trading participation fees and settlement-related revenue were down 25% and 32%, respectively, due to factors such as an approximately 30% decrease in stock trading value from the previous year. System-related revenue was down by 86%, which was mainly attributable to the fact that, this quarter, we did not achieve large system development-related sales such as those derived from dematerialized stock certificates during the same period of the previous year. As a result, operating revenue was down 30% to JPY 14.9 billion from the previous year.

On the other hand, operating expenses were down by 26% to JPY 11.3 billion from the previous year. While there was an increase in depreciation costs, this occurred as a result of a decrease in costs such as system maintenance/operating expenses and labor costs, as well as the fact that expenses such as initial system development costs, which had been recorded with system-related revenue during the same period of the previous year, were not posted in the operating expenses.

As a result, operating profit during the quarter was down 41% to JPY 3.59 billion from the previous year. Current profit adjusted by non-operating revenues and expenses including receipts of dividend income from the Singapore Exchange Limited was down 37% to JPY 4.08 billion from the previous year. After deducting corporate taxes and others, net profit for the quarter was down 20% to JPY 2.99 billion.