Toho (9602) Q2 2024 earnings summary

Executive summary

• Achieved record-high revenue and profits for the second quarter of FY2025, driven by strong performance in movie and animation segments, with major hits like "Detective Conan: The Million-dollar Pentagram," "Kingdom: The Return of the Great General," and "Haikyu!! The Dumpster Battle."

• TOHO animation and video business saw significant growth from titles like "My Hero Academia," "Jujutsu Kaisen," and "Haikyu!!," with robust results in streaming, licensing, and merchandise.

• Strong movie and video segments offset declines in theater attendance and profits in exhibition and real estate.

• Full-year forecast revised upward, now expecting revenue of ¥297 billion and operating profit of ¥62 billion.

Financial highlights

• Operating revenue rose 17.2% year-over-year to ¥163.7 billion for the six months ended August 2024.

• Operating profit increased 33.0% year-over-year to ¥40.9 billion; recurring/ordinary profit up 21.0% to ¥39.8 billion.

• Net income attributable to shareholders grew 21.8% year-over-year to ¥26.5 billion.

• EPS for the half-year was ¥155.11, up from ¥124.59 in the previous year.

• Interim dividend increased to ¥35 per share, with a full-year forecast of ¥70 per share.

Outlook and guidance

• Full-year guidance revised upward: revenue forecast raised to ¥297 billion (+6.1%), operating profit to ¥62 billion (+12.7%), and net income to ¥40 billion (+2.6%).

• Upward revision reflects stronger-than-expected movie and animation business, with continued momentum expected in the second half.

• Dividend policy remains at a payout ratio of 30% or higher, with annual dividend forecast at ¥70 per share.

• Movie segment expected to see modest growth, while exhibition revenue is forecast to decline due to lower attendance.

• Real estate segment revenue projected to rise 16.3% year-over-year, driven by new developments and higher occupancy.