Tokyu (9005) Q1 2025 earnings summary

Executive summary

• Operating revenue rose 14.1% year-over-year to ¥273.0B, and operating profit surged 61.5% to ¥39.5B, driven by strong condominium sales and demand recovery in transportation and hotels.

• Profit attributable to owners of parent increased 49.5% year-over-year to ¥29.8B, with both operating profit and net profit ahead of May 2024 forecasts.

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

• Comprehensive income grew 47.9% year-over-year to ¥35.4B.

Financial highlights

• Operating revenue: ¥273.0B (+14.1% YoY); operating profit: ¥39.5B (+61.5% YoY); recurring/ordinary profit: ¥41.3B (+49.6% YoY).

• EPS: ¥49.81 (+¥17.12 YoY); EBITDA: ¥60.5B (+32.9% YoY); Tokyu EBITDA: ¥64.5B (+25.7% YoY).

• Net income: ¥30.1B (+47.3% YoY); profit attributable to owners of parent: ¥29.8B (+49.5% YoY).

• Total assets: ¥2,597.6B (-2.1% from FY2023 year-end); equity ratio: 31.5% (+1.8pt); D/E ratio: 1.5x.

• Capital expenditure in 1Q: ¥10.5B (-48.0% YoY); depreciation and amortization: ¥20.9B.

Outlook and guidance

• FY2024 operating revenue forecast: ¥1,055.0B (+1.7% YoY); operating profit: ¥88.0B (-7.3% YoY); profit attributable to owners of parent: ¥60.0B (-5.9% YoY).

• Real estate sales expected to decline due to fewer condominium deliveries; labor costs to rise with wage increases and hiring.

• Hotel and Resort segment to benefit from higher occupancy and ADR, with full-year occupancy forecast at 78.5% (+2.8pt YoY).

• Free cash flow projected at ¥55.1B for FY2024; net interest-bearing debt to decrease to ¥1,170.9B.

• Annual dividend forecast is ¥22.00 per share, unchanged from previous guidance.