Oriental Land (4661) Q1 2025 earnings summary

Executive summary

• Net sales rose 5.6% year-over-year to ¥148.4 billion, driven by higher attendance and the opening of Fantasy Springs.

• Operating profit declined 13.8% to ¥33.3 billion due to increased costs, despite revenue growth.

• Profit attributable to owners of parent decreased 10.9% to ¥24.4 billion.

• Comprehensive income decreased 48.6% year-over-year to ¥19,032 million.

• New cruise business segment announced, targeting long-term growth and diversification.

Financial highlights

• Theme Park segment net sales increased 4.2% year-over-year to ¥121.4 billion; operating profit fell 13.2% to ¥28.1 billion.

• Hotel Business segment net sales rose 12.0% to ¥22.7 billion; operating profit dropped 27.4% to ¥4.3 billion.

• Other Business segment net sales grew 13.7% to ¥4.2 billion; operating profit surged 270.6% to ¥0.6 billion.

• Gross profit for Q1 FY2025 was ¥57,242 million, down from ¥57,862 million in the prior year.

• Net sales and operating profit exceeded internal forecasts due to higher-than-expected attendance and cost deferrals.

Outlook and guidance

• Cruise business to launch in FY3/29, with initial investment of ¥330 billion and expected annual net sales of ¥100 billion within several years.

• Operating margin for cruise business projected to match Theme Park segment (20% range) once stabilized.

• Full-year FY2025 net sales projected at ¥684,764 million, up 10.7% year-over-year.

• Operating profit forecasted at ¥170,000 million (+2.8%), and net income attributable to owners of parent at ¥120,517 million (+0.2%).

• Medium- to long-term management plan under formulation, focusing on sustainable growth and new business opportunities.