Oriental Land (4661) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 5.6% year-over-year to ¥148.4 billion, driven by higher attendance, especially from overseas guests, and the opening of Fantasy Springs.

• Operating profit declined 13.8% to ¥33.3 billion due to increased costs, including personnel, maintenance, and depreciation.

• Profit attributable to owners of parent decreased 10.9% to ¥24.4 billion.

• Both net sales and operating profit exceeded internal forecasts, mainly due to higher-than-expected attendance and deferred costs.

• New cruise business segment announced, targeting long-term growth and diversification.

Financial highlights

• Theme Park segment net sales increased to ¥121.4 billion, with operating profit at ¥28.1 billion.

• Hotel segment net sales reached ¥22.8 billion, but operating profit dropped to ¥4.3 billion.

• Other Business segment net sales grew to ¥4.2 billion, with operating profit up to ¥0.6 billion.

• Gross profit for Q1 FY2025 was ¥57.2 billion, down from ¥57.9 billion in the prior year.

• EPS for Q1 FY2025 was ¥14.92, compared to ¥16.75 in the prior year.

Outlook and guidance

• Full-year FY2025 net sales projected at ¥684.8 billion (+10.7%), operating profit at ¥170.0 billion (+2.8%), and net income at ¥120.5 billion (+0.2%).

• No revisions to previously announced guidance due to weather and other risks.

• Cruise business to launch in FY3/29 (FY2029), with initial investment of ¥330 billion and expected annual net sales of ¥100 billion within several years.

• Operating margin for cruise business projected to match Theme Park segment (20% range) once stabilized.