Tokyo Metro (9023) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 3.2% YoY to ¥217,263m; operating profit fell 1.6% to ¥49,244m.

• Attributable profit declined 16.3% to ¥29,234m, partly because a prior-year retirement benefit plan revision gain did not recur.

• Full-year guidance is unchanged; first-half profits were generally in line with forecasts, though passenger revenue is running below plan.

Financial highlights

• Operating revenue was ¥217,263m (+3.2%); passenger transportation revenue rose 3.0% to ¥180,975m.

• Operating expenses increased 4.7% to ¥168,019m; operating profit fell 1.6% to ¥49,244m and ordinary profit fell 2.8% to ¥43,124m.

• Comprehensive income declined 8.0% to ¥28,472m; prior-year extraordinary income included a ¥6,408m retirement benefit plan revision gain.

• EBITDA increased 0.8% YoY to ¥87.1bn.

Outlook and guidance

• FY2027 forecast: revenue ¥437,200m (+3.5%), operating profit ¥81,400m (-9.1%), ordinary profit ¥69,000m (-12.9%) and attributable profit ¥50,000m (-15.3%); unchanged.

• Passenger transportation revenue is forecast at ¥365.0bn (+4.1%), but is expected to fall short amid fewer visitors from outside Greater Tokyo and adverse weather.

• FY2027 dividend guidance remains ¥44 per share, comprising ¥22 interim and ¥22 year-end; forecast EPS is ¥86.11.

• FY2028 railway expenses are expected to exceed FY2027 forecast levels, with operating profit potentially below FY2027; current medium-term targets are extremely challenging.

• FY2028 dividend target is ¥46 per share, with a DOE target of ~3.4%.