Oriental Land (4661) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 4.5% year-over-year to ¥297.2 billion, reaching a record high, but operating profit declined 18% to ¥63.1 billion due to increased costs despite revenue growth in hotel and theme park segments.

• Theme park attendance declined year-on-year, impacted by a slowdown in post-pandemic travel demand and severe summer heat, though net sales per guest increased 4.4% to ¥17,303 due to higher ticket prices and new offerings.

• Hotel business net sales surged 17.4% year-over-year to ¥50.2 billion, mainly from the opening of Tokyo DisneySea Fantasy Springs Hotel, though occupancy rates dropped 5.5 percentage points to 93.3% and operating profit fell 7.5%.

• Net sales and profits for the first half missed initial forecasts, primarily due to lower-than-expected theme park attendance.

• Comprehensive income decreased 41.6% year-over-year to ¥35,872 million for the six months ended September 30, 2024.

Financial highlights

• Consolidated net sales: ¥297.2 billion (+4.5% YoY); operating profit: ¥63.1 billion (−18.0% YoY); net income: ¥45.5 billion (−16.5% YoY); gross profit: ¥111.6 billion; EPS: ¥27.78.

• Theme park segment: net sales ¥238.7 billion (+2.1% YoY), operating profit ¥49.9 billion (−20.6% YoY).

• Hotel segment: net sales ¥50.2 billion (+17.4% YoY), operating profit ¥12.3 billion (−7.5% YoY).

• Other business: net sales ¥8.2 billion (+8.3% YoY), operating profit ¥0.5 billion (+6.4% YoY).

• Total assets increased to ¥1,427.0 billion as of September 30, 2024, with shareholders' equity ratio at 68.2%.

Outlook and guidance

• Full-year FY2025 net sales are projected at ¥684.8 billion (+10.7% YoY), with operating profit expected to rise 2.8% to ¥170.0 billion and profit attributable to owners of parent to increase 0.2% to ¥120.5 billion.

• Full-year guidance is maintained, with 2H net sales and operating profit expected to exceed initial forecasts, offsetting 1H shortfalls through cost control and revenue initiatives.

• Attendance for FY2025 is expected at 28 million, with efforts to increase sales and reduce costs to meet targets.

• Full-year EPS is forecast at ¥73.14; interim dividend per share was ¥7.00, with a full-year forecast of ¥14.00.