Tokyu Corporation boosts FY2025 forecasts after strong Q2 performance

Tokyu Corporation has raised its FY2025 financial forecasts, with operating revenue now projected at JPY1,085.0 billion, up JPY13.0 billion from the May forecast, and operating profit expected to reach JPY104.0 billion, an increase of JPY4.0 billion. This revision reflects strong Q2 FY2025 results, particularly in the life service and hotel and resort businesses. While total operating revenue for Q2 FY2025 decreased by JPY6.2 billion year-on-year to JPY518.9 billion, operating profit also saw a decrease of JPY6.4 billion to JPY58.8 billion.

Despite the decline in operating profit, profit attributable to owners of parent increased by JPY6.7 billion to JPY56.2 billion, benefiting from the recognition of negative goodwill following the additional acquisition of investment units in Tokyu REIT, Inc., making it an equity-method affiliate. Tokyu's diverse business portfolio is expected to mitigate the impact of rising costs and interest rates, maintaining stable revenue streams and robust credit ratings.

The company is committed to sustainable growth through strategic investments and initiatives to enhance asset value, focusing on urban redevelopment in Shibuya and along Tokyu lines. These efforts, alongside a planned annual dividend of JPY28 per share and a share buyback program of up to JPY10.0 billion, underscore Tokyu’s commitment to shareholder returns and long-term corporate value.