Tokyu (9005) Q2 2025 earnings summary

Executive summary

• Operating revenue for the six months ended September 30, 2024, rose 8.6% year-over-year to ¥525,234 million, with operating profit up 43.5% to ¥65,335 million and profit attributable to owners of parent up 41.2% to ¥49,466 million, reflecting strong recovery in railway, hotel, and real estate businesses.

• Year-over-year, operating revenue increased by ¥41.7 billion and operating profit by ¥19.8 billion, driven by higher user numbers and increased condominium sales.

• 1H FY2024 operating profit exceeded pre-COVID levels, reaching a record high.

• Profit attributable to owners of parent increased 41.2% year-over-year, surpassing May 2024 forecasts.

Financial highlights

• Ordinary profit for the first half reached ¥66,430 million, up 33.7% year-over-year.

• Net income per share was ¥82.54, compared to ¥57.85 in the same period last year.

• EBITDA for 1H FY2024 was ¥107.4 billion (+21.9% YoY); TOKYU EBITDA was ¥114.3 billion (+16.8% YoY).

• Free cash flow for 1H: ¥56.4 billion (+¥37.2 billion YoY); net interest-bearing debt at period end: ¥1,165.0 billion.

• Equity ratio improved to 32.0% (+2.2p YoY).

Outlook and guidance

• Full-year FY2024 operating revenue is projected at ¥1,065,000 million (+2.6% YoY), operating profit at ¥101,000 million (+6.4% YoY), and profit attributable to owners of parent at ¥74,000 million (+16.1% YoY), all revised upward from May.

• Net income per share for the full year is expected to be ¥129.30.

• Management expects to achieve medium-term profit targets ahead of schedule, with FY2025 and FY2026 operating profit targets raised by ¥10 billion each year.

• Full-year hotel occupancy rate forecast at 79.1% (+3.5p YoY); ADR at ¥23,327 (+¥2,148 YoY).