Odakyu Electric Railway (9007) Q1 2025 earnings summary

Executive summary

• Consolidated operating revenue for Q1 FY2024 rose 9.0% year-over-year to ¥109.6 billion, with operating profit up 14.9% to ¥16.8 billion and net profit surging 131.4% to ¥25.1 billion, driven by gains from the sale of UDS shares.

• Segment reorganization: "Retail" and "Other" merged into "Life Service" from FY2024, now reported as Transportation, Real Estate, and Life Services.

Financial highlights

• Operating revenue increased by ¥9.1 billion year-over-year, driven by strong Life Service and Transportation segments.

• Operating profit rose by ¥2.2 billion, and recurring/ordinary profit by ¥3.0 billion year-over-year.

• Net profit attributable to shareholders surged 131.4% to ¥25,124 million, mainly from a ¥17.2 billion gain on sale of affiliated company shares.

• EPS increased to ¥70.22 from ¥29.87 year-over-year.

• Special gains of ¥17.6 billion, mainly from equity sales, significantly boosted net income.

Outlook and guidance

• FY2024 full-year guidance unchanged: operating revenue projected at ¥424.0 billion (+3.5%), operating profit at ¥42.0 billion, and net profit at ¥38.0 billion.

• Interim and year-end dividend forecast maintained at ¥15.00 each, for a total of ¥30.00 per share.

• Q2 FY2024 forecast: operating revenue ¥208.8 billion (+6.4%), operating profit ¥24.0 billion, net profit ¥29.0 billion.