Tokyotokeiba (9672) Q1 2025 earnings summary

Executive summary

• Revenue/net sales rose 5.5% year-over-year to ¥9,264 million, driven by SPAT4 internet betting, local horse racing, and warehouse rental income.

• Operating income increased 16.1% to ¥3,276 million, with net income attributable to shareholders up 16.8% to ¥2,270 million.

• All major business segments except Services posted higher profits, with notable gains in Public Racing and Warehouse Leasing.

• The amusement park business saw higher visitor numbers but posted a larger segment loss due to increased maintenance costs during the winter closure.

• Growth was supported by smooth operation of new facilities and increased online betting.

Financial highlights

• Gross profit improved 14.3% year-over-year to ¥3,842 million, with a gross margin of 41.5%.

• Cash and deposits increased by ¥532 million, and total assets grew by ¥2,414 million from the previous quarter, reaching ¥124,819 million.

• Basic earnings per share increased to ¥85.09 from ¥71.05 year-over-year.

• Dividend payments totaled ¥1,948 million during the quarter.

• Equity ratio declined slightly to 73.2% from 74.4% at the previous year-end.

Outlook and guidance

• No revisions to the full-year forecast: net sales expected at ¥41,293 million, operating profit at ¥5,800 million, and profit attributable to owners of parent at ¥9,861 million.

• The company expects continued growth in SPAT4 and warehouse leasing, supported by new facility openings and sustained demand for internet betting.

• Ongoing investments in digital platforms and facility upgrades are anticipated to support future revenue streams.

• Full-year basic earnings per share forecast is ¥365.67.