Nippon Ski Resort Development Co (6040) Q4 2024 earnings summary

Executive summary

• Achieved record highs in all revenue and profit categories for the fiscal year ended July 2024, with strong performance in both winter and green seasons.

• Visitor numbers and customer spending per capita increased, driven by effective marketing and enhanced content.

• Inbound (international) visitors surpassed pre-pandemic levels, with 304,000 inbound visitors, up 82.5% year-over-year, and domestic family and non-skier segments also grew.

• Winter season visitors reached 1,651,000 (+12.7% YoY); green season visitors reached a record 473,000 (+10.2% YoY).

Financial highlights

• Revenue: ¥8,245 million, up 19.5% year-over-year; operating income: ¥1,552 million, up 49.8% year-over-year; net income: ¥1,093 million, up 14.8% year-over-year.

• EBITDA: ¥2,278 million, up 38.7% year-over-year.

• Operating profit margin improved to 18.8% from 15.0% year-over-year.

• EPS rose to ¥72.02 from ¥62.82 year-over-year.

• Dividend per share increased to ¥10.00 (from ¥7.00), with a payout ratio of 13.9%.

Outlook and guidance

• FY2025 revenue forecast: ¥9,600 million (+16.4% YoY); operating income: ¥1,700 million (+9.5% YoY); net income: ¥1,150 million (+5.1% YoY).

• EBITDA projected at ¥2,870 million (+26.0% YoY).

• Continued investment in new gondola and snowmaking equipment; real estate sales to be recognized from FY2025.

• Winter visitors expected to rise to 1,710,000 (+3.6% YoY); green season visitors to 478,000 (+1.0% YoY).

• Focus on expanding inbound and non-skier segments, with further investments in safety and facility upgrades.