Key Positives From The 1Q Results
The core Leisure business led the group with revenue of JPY 840M (+10.0% YoY) and segment profit of JPY 127M (+11.1% YoY). Visitor numbers at the two core facilities were broadly flat at 195k, so the double-digit revenue growth was driven by new in-park attractions and cross-facility pricing initiatives. On the balance sheet, the equity ratio stood at 83.1% with an effective net cash position of roughly JPY 1,971M, leaving ample capacity to fund new store investment internally.
- Revenue of JPY 1,255M (+4.1% YoY), recurring profit of JPY 188M (+0.9% YoY) and net income of JPY 124M (+2.8% YoY) — growth on both top and bottom lines
- Leisure revenue of JPY 840M (+10.0% YoY) with segment margin improving to 15.2% (our estimate, based on external customer revenue)
- Leisure visitors of 195k (+1k, two core facilities) versus +10.0% segment revenue growth, implying a meaningful contribution from pricing initiatives
- Non-operating income of JPY 23M (+27.4% YoY), with an insurance policy cancellation refund of JPY 7M and equity-method investment gains of JPY 5M supporting the recurring line
- Equity ratio of 83.1% (up 1.9pt from 81.2% at end-FY), with cash and deposits of JPY 2,292M against interest-bearing debt of JPY 321M
Key Concerns From The 1Q Results
Operating income declined to JPY 165M (-2.1% YoY). SG&A of JPY 829M (+4.8% YoY) grew faster than the +4.1% revenue increase, pushing the operating margin down 0.8pt to 13.1%. The Anitouch business continued to see visitor declines at 172k (-11.3% YoY), partly offsetting Leisure's growth.
- Operating margin fell to 13.1% (from 14.0%), primarily on SG&A growth outpacing revenue
- Anitouch revenue of JPY 278M (-7.2% YoY) and segment profit of JPY 61M (-10.1% YoY) — declines on both lines
- Hotel posted a segment loss of JPY -20M, widening from JPY -16M a year earlier, with revenue also down at JPY 136M (-4.0% YoY)
- Other segment recorded a loss of JPY -5M (versus JPY -0M in the prior-year quarter)
- Operating income progress of 12.2% against full-year guidance trails the 14.5% actual progress rate in the prior-year quarter (our estimate)
Focus Areas / Items To Monitor Going Forward
- Breakdown of the -22k visitor decline at existing Anitouch stores. Trends by location and competitive openings, and the effectiveness of measures to restore footfall into 2H.
- Timing of pre-opening cost recognition for Kichijoji (scheduled autumn 2026) and OSAKA Namba (scheduled December 2026), and the extent to which these are embedded in the JPY 1,350M full-year operating income plan.
- Path to profitability for the Hotel business. Occupancy and ADR contribution from premium products such as sauna-equipped suites and dog-friendly rooms.
- Structural drivers of visitor declines at existing Anitouch stores, and separating this from overall growth driven by new openings
- Total investment and per-store payback period under the plan to open six new stores by FY3/29
- Target timing for Hotel profitability and the occupancy level required
- Breakdown of SG&A growth (personnel, advertising, pre-opening costs) and the full-year increase outlook
- Sustainability of the rise in Leisure per-visitor spend, and headroom for admission price revisions
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 1,255M | +4.1% |
| Gross Profit | JPY 994M | +3.6% |
| └ Cost of Goods Sold | JPY 261M | +6.2% |
| Gross Profit Margin | 79.2% | -0.4pt |
| SG&A | JPY 829M | +4.8% |
| Operating Income | JPY 165M | -2.1% |
| Operating Income Margin | 13.1% | -0.8pt |
| Non-Operating Income | JPY 23M | +27.4% |
| Recurring Profit | JPY 188M | +0.9% |
| Net Income Attributable to Owners of Parent Company | JPY 124M | +2.8% |
| EPS | JPY 6.72 | +2.3% |
| Comprehensive Income | JPY 114M | -18.3% |
| Depreciation & Amortization | JPY 107M | +5.4% |
| Goodwill Amortization | JPY 23M | +1.2% |
| Visitors (Leisure: Izu Shaboten Zoo + Granpal Park) | 195k | +1k |
| Visitors (Anitouch) | 172k | -22k |
Gross margin declined 0.4pt to 79.2%. At the operating line, SG&A growth of +4.8% outpaced revenue growth, producing a decline; higher non-operating income nonetheless secured growth at the recurring line. No extraordinary losses were recorded, and the drop in comprehensive income reflects JPY -5M in net unrealized gains on available-for-sale securities and JPY -5M in the share attributable to equity-method affiliates. Note that the company discloses that the visitor count basis has been changed from this fiscal year to the combined total for the two core facilities.
Performance By Business Segment
Leisure led the group with double-digit growth in both revenue and profit, while Anitouch and Hotel saw revenue declines — leaving the three segments moving in divergent directions.
Segment Performance Table (revenue on an external customer basis)
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Leisure | JPY 840M | +10.0% | JPY 127M | +11.1% | 15.2% |
| Anitouch | JPY 278M | -7.2% | JPY 61M | -10.1% | 22.2% |
| Hotel | JPY 136M | -4.0% | JPY -20M | vs. JPY -16M in prior-year quarter | -15.1% |
| Other | JPY 0M | - | JPY -5M | vs. JPY -0M in prior-year quarter | - |
| Adjustments | - | - | +JPY 1M | - | - |
| Consolidated Total | JPY 1,255M | +4.1% | JPY 165M | -2.1% | 13.1% |
(Margins are our estimates. Other segment external revenue was JPY 24k, hence shown as JPY 0M)
- Leisure: revenue +10.0%, profit +11.1%. With visitors at 195k, up just 1k YoY, new in-park areas such as Monkey Terrace and the Petting Horse Ranch, plus cross-facility combo tickets, lifted per-visitor spend.
- Leisure profitability: segment margin rose to 15.2% (from 15.0%, our estimate). Incremental revenue absorbed fixed costs, demonstrating the operating leverage in running multiple parks across the Izu Peninsula.
- Anitouch: visitors fell to 172k (-11.3% YoY), driving revenue down 7.2%. Slowing footfall on an existing-store basis across six nationwide locations was the main driver; the smaller revenue decline relative to the visitor decline suggests unit pricing held up.
- Hotel: revenue -4.0% with the segment loss widening to JPY -20M. Lower revenue at accommodation facilities including Izu Shaboten Village left fixed costs uncovered, widening the loss.
Progress Versus Full-Year Guidance
Progress against full-year guidance stands at 20.9% for revenue and 12.2% for operating income. Versus the prior-year actual-based progress (revenue 21.6%, operating income 14.5%, our estimates), revenue is broadly in line while operating income is slightly behind. The company has maintained the full-year guidance published on 15 May 2026. Footfall in 2H — including the summer peak and the Gran Illumi season — and the contribution from new stores opening in 2H will be the key determinants of plan achievement.
| Item | Value (1Q Cumulative) | Full-Year Forecast | Progress Rate |
|---|---|---|---|
| Revenue | JPY 1,255M | JPY 6,000M | 20.9% |
| Operating Income | JPY 165M | JPY 1,350M | 12.2% |
| Recurring Profit | JPY 188M | JPY 1,440M | 13.1% |
| Net Income Attributable to Owners of Parent Company | JPY 124M | JPY 980M | 12.7% |
| EPS | JPY 6.72 | JPY 52.84 | 12.7% |
- In the prior year, 1Q operating income of JPY 168M compared with JPY 1,167M for the full year, giving 1Q a 14.5% weighting (our estimate). 1Q carries the lowest quarterly profit weighting.
- The company extends operating hours during the summer holidays and runs illumination events, resulting in a 2H-weighted earnings profile.
Changes To Guidance
No change from the FY3/27 consolidated full-year guidance published on 15 May 2026 (revenue JPY 6,000M, operating income JPY 1,350M, recurring profit JPY 1,440M, net income JPY 980M). Despite the 1Q operating income decline, the company has made no revision at this stage.
Commentary On Shareholder Returns
The FY3/27 dividend forecast is unchanged at JPY 0.00 for 1H and JPY 20.00 at year-end, for an annual JPY 20.00. There is no revision from the most recently published forecast. The prior-year year-end dividend of JPY 371M (our estimate, derived from the change in retained earnings) was paid during 1Q, contributing to the decline in cash and deposits. There is no mention of a new share buyback policy; treasury shares edged up from 23,934 to 24,584 shares.
Financial Position
The company continues to operate with an effective net cash position, and the equity ratio rose to 83.1%. The decline in total assets reflects the dividend payment and seasonal working capital movements associated with income tax payments; balance sheet health remains strong.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 2,292M | -15.0% vs. end-FY |
| Total Assets | JPY 7,312M | -6.2% vs. end-FY |
| └ Total Current Assets | JPY 2,643M | -15.7% vs. end-FY; accounts receivable and contract assets down JPY 157M |
| └ Total Non-Current Assets | JPY 4,668M | +0.1% vs. end-FY; construction in progress up JPY 98M |
| Goodwill | JPY 621M | -3.6% vs. end-FY; quarterly amortization of JPY 23M |
| Shareholders' Equity | JPY 6,073M | -4.1% vs. end-FY |
| Interest-Bearing Debt | JPY 321M | Our estimate (short- and long-term borrowings + lease liabilities) |
| └ Long-Term Borrowings | JPY 282M | - |
| └ Current Portion of Long-Term Borrowings | JPY 25M | - |
| └ Lease Liabilities (Non-Current) | JPY 13M | - |
| Income Taxes Payable | JPY 66M | -JPY 165M vs. end-FY |
| EBITDA | JPY 272M | Operating income + D&A (our estimate; excludes goodwill amortization) |
Disclosures Released Alongside The Earnings Announcement
None
Major Announcements During The Quarter
- 2026/05/15Sequential opening of new areas at Izu Shaboten Zoo — "Monkey Terrace" (6 June) and "Petting Horse Ranch" (4 July) — creating fresh visit drivers at the flagship facility New areas launched! "Monkey Terrace" home to white-faced sakis, and dromedary camels joining the "Petting Horse Ranch"
- 2026/05/26Extended operating hours at the three main facilities during the summer holidays, with limited-edition combo tickets for Granpal Park and Gran Illumi aimed at lifting per-visitor spend Substantially extended operating hours this summer: Izu Shaboten Zoo, Izu Granpal Park, Bora-Naya
- 2026/06/11Addition of two premium guest rooms with open-air baths and saunas at SKY-HILL HOTEL Izu Kogen, bringing the total to 25 rooms — an ADR improvement initiative for the Hotel business Launch of sauna-equipped private suites — opening Saturday, 18 July 2026
- 2026/06/15Announced plans to open "Anitouch Kichijoji" (approx. 515 sqm) in autumn 2026 — Anitouch's first street-level, full-building format store Notice regarding the opening of Anitouch Kichijoji
- 2026/08/12First Kansai location, "Anitouch OSAKA Namba," scheduled to open in December 2026; the target of six new store openings by FY3/29 is maintained Notice regarding the opening of Anitouch OSAKA Namba
Large-Shareholding Filings / Material Proposals Over The Past Year
None
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