Japan Airport Terminal (9706) Q2 2024 earnings summary

Executive summary

• FY23 1H returned to profitability for the first time in four years as recovering passenger demand lifted sales across all segments, led by international merchandise sales.

• Results exceeded the August forecast, supported by strong international demand and lower-than-forecast utility and repair expenses.

Financial highlights

• H1 FY2023 operating revenue was ¥100,148 million, up 129.6% YoY; operating income was ¥13,508 million versus a ¥9,273 million loss.

• Ordinary income was ¥12,481 million versus a ¥9,759 million loss; net income attributable to owners was ¥8,234 million versus a ¥3,341 million loss, and EPS was ¥88.41.

• Gross profit was ¥67,422 million versus ¥34,584 million YoY; EBITDA was ¥27.4bn versus ¥5.1bn.

• Capital expenditure was ¥2.1bn and depreciation expense ¥13.9bn in FY23 1H.

Outlook and guidance

• FY23 forecast: revenue ¥211.5bn, operating income ¥24.7bn, ordinary income ¥22.8bn, net income ¥15.2bn and EPS ¥163.20; operating-income guidance rose from the initial ¥15.4bn forecast and was unchanged from the latest revision.

• FY23 EBITDA is forecast at ¥53.0bn, capital expenditure at ¥33.0bn and depreciation at ¥28.3bn; full-year dividend forecast is ¥50 per share.

• FY25 targets include operating income of ¥30bn, net income of at least ¥16bn, EBITDA-based ROA of 12% or higher and an equity ratio recovering to 40%.

• FY23 passenger forecast: domestic 61.31m, international 19.37m and total 80.69m; international traffic is expected to exceed 2019 levels.