Oriental Land (4661) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 4.5% year-over-year to ¥297.2 billion, reaching a record high, but operating profit declined 18% to ¥63.1 billion due to increased costs despite growth in the Hotel and Theme Park segments.

• Attendance decreased year-on-year due to reduced travel demand post-pandemic and severe summer heat, though net sales per guest increased 4.4% to ¥17,303 from higher ticket prices and new offerings.

• Hotel business net sales surged 17.4% year-over-year to ¥50.2 billion, mainly from the opening of Tokyo DisneySea Fantasy Springs Hotel, but operating profit dropped 7.5% to ¥12.3 billion due to higher costs.

• Net sales and all profit levels for the first half missed initial forecasts, mainly due to lower-than-expected attendance.

• Comprehensive income for the first half decreased 41.6% year-over-year to ¥35,872 million.

Financial highlights

• Consolidated net sales: ¥297.2 billion (+4.5% YoY); operating profit: ¥63.1 billion (−18.0% YoY); net income: ¥45.5 billion (−16.5% YoY).

• Theme Park segment: net sales ¥238.7 billion (+2.1% YoY), operating profit ¥49.9 billion (−20.6% YoY).

• Hotel segment: net sales ¥50.2 billion (+17.4% YoY), operating profit ¥12.3 billion (−7.5% YoY).

• Other Business segment: net sales ¥8.2 billion (+8.3% YoY), operating profit ¥0.5 billion (+6.4% YoY).

• Gross profit for the first half was ¥111,638 million, down from ¥116,407 million year-over-year, with a gross margin decline due to higher cost of sales.

Outlook and guidance

• Full-year FY2025 net sales are projected at ¥684,764 million, up 10.7% year-over-year, with operating profit expected to rise 2.8% to ¥170,000 million and profit attributable to owners of parent to increase 0.2% to ¥120,517 million.

• Full-year guidance is maintained, with 2H net sales and operating profit expected to exceed initial forecasts, offsetting 1H shortfalls through cost control and revenue initiatives.

• Attendance for FY2025 is expected at 28 million, with efforts to increase sales and reduce costs to meet targets.

• Full-year EPS is forecast at ¥73.14.