Universal Entertainment (6425) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 were ¥62,175 million, down 1.2% year-over-year; operating profit dropped to ¥847 million from ¥3,264 million, with a net loss of ¥9,874 million compared to a net income of ¥525 million in the prior year.

• Ordinary loss was ¥14,752 million, reversing from a ¥5,567 million profit last year, mainly due to significant foreign exchange losses and higher financing costs.

• Comprehensive income was negative ¥17,421 million, impacted by foreign currency translation adjustments.

• Foreign exchange losses and increased interest expenses heavily impacted profitability.

Financial highlights

• Gross profit margin declined to 58.4% from 61.7% year-over-year, with gross profit at ¥36,345 million.

• Operating profit margin fell to 1.3% from 5.1% year-over-year.

• Net loss per share was ¥127.43, compared to earnings of ¥6.78 per share last year.

• Total assets decreased by 6.0% to ¥594,410 million as of June 30, 2025; net assets declined by 4.7% to ¥352,309 million.

• Cash and cash equivalents at period-end were ¥22,397 million, down ¥1,398 million from year-end 2024.

Outlook and guidance

• Full-year 2025 forecast remains unchanged: net sales ¥150,000 million, operating profit ¥16,000 million, net income ¥800 million.

• No revision to business results forecast; company will announce promptly if changes are needed.

• Segment performance and market conditions suggest ongoing challenges in the integrated resort business and continued strength in amusement equipment.