Toho (9602) Q2 2025 earnings summary

Executive summary

• Achieved record-high revenue and profits across all major financial metrics for the second quarter of FY2025, driven by strong performance in the movie and animation segments, especially cinema production/distribution and licensing.

• Major movie hits included "Detective Conan: The Million-dollar Pentagram," "Kingdom: The Return of the Great General," and "Haikyu!! The Dumpster Battle."

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

• Growth was partially offset by declines in movie theater chain and some real estate segments.

• The company revised its full-year forecast upward, now expecting operating revenue of ¥297,000 million and operating profit of ¥62,000 million.

Financial highlights

• Operating revenue rose 17.2% year-over-year to ¥163,681 million for the six months ended August 2024.

• Operating profit increased 33.0% year-over-year to ¥40,915 million; recurring/ordinary profit up 21.0% to ¥39,781 million.

• Net income attributable to shareholders grew 21.8% year-over-year to ¥26,485 million.

• Basic earnings per share: ¥155.11 (up from ¥124.59 year-over-year).

• All profit and revenue figures marked historical highs for the company at each stage.

Outlook and guidance

• Full-year guidance revised upward: revenue forecast raised to ¥297,000 million, operating profit to ¥62,000 million, and net income to ¥40,000 million.

• 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.

• Segment guidance: Cinema business to see modest growth, real estate business to rise 16.3%, theatrical business up 7.7%.