Tokyo Metro (9023) Q2 2025 earnings summary

Executive summary

• Operating revenues for the six months ended September 30, 2024, rose 5.5% year-over-year to ¥202.4 billion, with net income up 26.6% to ¥30.7 billion, driven by increased passenger transportation and economic recovery.

• All business segments—Transportation, Real Estate, Retail and Advertising—reported higher revenues and income, reflecting revitalized economic activity and strategic investments.

• The company advanced its medium-term management plan, focusing on cost structure reform, new railway construction, urban design, and sustainability initiatives.

• Passenger transportation revenues recovered to 95.7% of pre-COVID levels by September 2024, with non-commuter demand showing particular strength.

Financial highlights

• Operating income increased 23.9% year-over-year to ¥50.1 billion; ordinary income rose 27.4% to ¥44.5 billion.

• EBITDA for the period was ¥85.3 billion, up 11.2% year-over-year.

• Free cash flow turned positive at ¥13.5 billion, compared to negative ¥2.9 billion in the prior year period.

• Equity-to-asset ratio improved to 34.0% from 33.0% at the end of March 2024.

• Basic earnings per share was ¥52.84, up from ¥41.73 year-on-year.

Outlook and guidance

• Focus on stimulating non-commuter demand, leveraging inbound tourism, and expanding city tourism to drive further revenue growth.

• Cost structure reforms aim to keep railway overhead (excluding electricity) below ¥100 billion, maintaining efficiency gains from the COVID period.

• Capital investments will be kept within depreciation and amortization levels, with growth investments prioritized.

• Dividend payout ratio target remains at 40% or higher, with continued emphasis on shareholder returns.