Summary
2Q (July–September 2026) includes the summer holidays and is the most profitable quarter of the year. In the prior-year period, standalone 2Q operating income was JPY 448M, roughly 40% of full-year operating income (our estimate). The company maintained its full-year guidance for +18.8% growth in recurring profit, but 1Q recurring profit rose only +0.9%. How far 1H recurring profit exceeds the prior-year JPY 642M will therefore determine how credible the plan is.
By segment, the first focus is whether the Leisure business, where revenue grew a strong +10.0%, can sustain that momentum through the peak season. The second is the extent of recovery at the Anitouch business, where visitors fell by 22K in 1Q. On costs, the key question is whether peak-season revenue growth can absorb SG&A that is growing faster than revenue.
Key Points for Next Quarter
| Key Points & Focus | Implications |
|---|---|
Full-Year Plan Progress1H recurring profit YoY and Guidance Achievement Rate vs. full-year plan | 1Q Guidance Achievement Rate was 13.1%, below the prior-year 15.4% (vs. full-year actual). Hitting the JPY 1,440M full-year target requires recurring profit of +22.1% vs. the same period last year over the remaining nine months from 2Q (our estimate). |
Leisure Business1H segment revenue and profit including the summer peak, plus visitor numbers at the two core facilities | In 1Q, revenue rose +10.0% and segment profit +11.1%, underpinning company-wide results. However, visitors increased by only 1K. We want to understand what explains the gap versus revenue growth. |
Anitouch BusinessVisitor numbers at the six existing facilities and 1H segment profit YoY | In 1Q, visitors were 172K (-22K) and revenue fell -7.2%. New store contributions begin in 3Q, so 2Q hinges on the recovery at existing stores. |
Cost Structure1H Operating Income Margin and SG&A YoY | In 1Q, SG&A growth of +4.8% outpaced revenue growth of +4.1%, compressing Operating Income Margin to 13.1% (prior year: 14.0%). Comparing against the prior-year 1H Operating Income Margin of 21.7% will show whether fixed costs were absorbed. |
Hotel Business1H Hotel business revenue and segment profit/loss | In 1Q, revenue fell -4.0% and the segment posted a JPY 20M loss (prior year: JPY 16M loss). We will check whether losses narrow in 2Q, which includes the summer holidays. |
Key Issues from Previous Results (FY3/2027 1Q Results)
1Q revenue grew to JPY 1,255M (+4.1%). However, operating income of JPY 165M (-2.1%) fell short of the prior year, leaving the company behind pace on its full-year profit growth plan. Growth in the Leisure business offset revenue declines in the Anitouch and Hotel businesses. On the balance sheet, the company maintains a solid capital base with an Equity Ratio of 83.1%. Construction in progress rose by JPY 98M, indicating ongoing investment.
1. 1H Progress Toward the Full-Year Profit Growth Plan
- Previous Quarter: 1Q recurring profit was JPY 188M (+0.9%), a 13.1% Guidance Achievement Rate against the JPY 1,440M full-year plan (our estimate).
- This Quarter: We will check how far 1H recurring profit exceeds the prior-year JPY 642M and whether guidance remains unchanged. Achieving the full-year plan requires JPY 1,252M in recurring profit from 2Q onward, +22.1% vs. JPY 1,025M in the same period last year (our estimate).
- Key Metrics: 1H recurring profit YoY and Guidance Achievement Rate. The prior-year 1H achievement rate was 53.0% of full-year actual (our estimate).
2. Leisure Business Growth During the Summer Peak
- Previous Quarter: Revenue of JPY 840M (+10.0%), segment profit of JPY 127M (+11.1%), and segment margin of 15.2% (prior year: 15.0%; our estimate).
- This Quarter: We will check whether 2Q, which includes the summer holidays, sustains revenue and profit growth similar to 1Q. Visitors at the two core facilities rose only 1K, yet revenue grew +10.0%. We also want to determine whether this reflects higher spend per visitor or contributions from facilities outside the core two.
- Key Metrics: 1H Leisure business revenue and segment profit YoY, and the YoY change in visitors at the two core facilities.
3. Anitouch Visitor Recovery and New Store Preparations
- Previous Quarter: Revenue of JPY 278M (-7.2%), segment profit of JPY 61M (-10.1%), and 172K visitors (-22K).
- This Quarter: Revenue per visitor was approximately JPY 1,618, up from about JPY 1,545 a year earlier (our estimate). The 2Q focus is whether visitors recover while the higher unit price holds. The Kichijoji opening (October 19) and the Minatomirai shop area renovation (late October) will be reflected from 3Q. For 2Q, we will check for any pre-opening expenses.
- Key Metrics: 1H Anitouch business revenue, segment profit and visitor numbers YoY.
4. Absorbing Cost Increases and Operating Income Margin
- Previous Quarter: Gross Profit Margin was 79.2% (prior year: 79.6%) and SG&A was JPY 829M (+4.8%). Depreciation was JPY 107M (prior year: JPY 101M).
- This Quarter: The company cites rising raw material and logistics costs tied to the situation in the Middle East as an external headwind. 1Q recurring profit was also supported by JPY 7M in insurance surrender proceeds. The 2Q focus is therefore whether profit growth returns at the operating level. We will also review the breakdown of extraordinary items and income taxes.
- Key Metrics: 1H operating income YoY (prior year: JPY 616M), 1H Operating Income Margin (prior year: 21.7%), and SG&A YoY.
5. Hotel Business Profit Improvement
- Previous Quarter: Revenue of JPY 136M (-4.0%) and a segment loss of JPY 20M (prior year: JPY 16M loss).
- This Quarter: We will check whether the revenue decline bottoms out and losses narrow in 2Q, which includes the summer holidays. A smaller loss would support margin improvement across the group.
- Key Metrics: 1H Hotel business revenue YoY and the YoY change in segment profit/loss.
Key Timely Disclosures This Quarter
- 2026/10/06Notice Regarding the Opening Date of Anitouch Kichijoji - The company will open "Anitouch Kichijoji," an indoor animal interaction facility, on October 19. It is Anitouch's first street-front store and occupies all floors from the 1st to the 3rd. Revenue contribution begins in 3Q (October–December); for 2Q, the key check is whether pre-opening costs were incurred.
- 2026/09/18Notice of Anitouch Minatomirai Shop Area Renewal - The in-facility shop area will be fully renovated and reopen in late October as a new exhibition space. The initiative aims to enhance the experience at existing stores, and its impact on visitor recovery will be assessed in results from 3Q onward.
- 2026/09/17"Izu Kogen Grand Illumi ~12th SEASON~" Starts Friday, November 6, 2026 - A large-scale seasonal event at Izu Granpal Park running through August 31, 2027, adding new photo spots and a "Submarine Volcano Area." The event supports winter traffic for the Leisure business, with the impact reflected from 3Q onward.
Previous Quarter Results (FY3/2027 1Q Actual)
The company's core is the Leisure business, which operates parks on the Izu Peninsula including Izu Shaboten Zoo and Izu Granpal Park. It also runs the Anitouch business, with animal interaction facilities at six locations nationwide, and the Hotel business, which operates accommodation such as Izu Shaboten Village. For FY3/2027, the company targets revenue of JPY 6,000M (+7.3%) and operating income of JPY 1,350M (+15.7%). In 1Q, revenue grew, but higher costs pushed operating income below the prior-year level.
| Item | Amount | YoY | vs. Company Plan | Notes |
|---|---|---|---|---|
| Revenue | JPY 1,255M | +4.1% | - | Leisure business +10.0% offset Anitouch business -7.2% and Hotel business -4.0% |
| Operating Income | JPY 165M | -2.1% | - | SG&A +4.8%; Operating Income Margin of 13.1% (prior year: 14.0%) |
| Recurring Profit | JPY 188M | +0.9% | - | Non-operating income rose to JPY 23M, including JPY 7M in insurance surrender proceeds |
| Net Income | JPY 124M | +2.8% | - | Extraordinary gains of JPY 0M; no extraordinary losses recorded |
| EPS | JPY 6.72 | +2.3% | - | Full-year guidance of JPY 52.84 |
Guidance Achievement Rate vs. Full-Year Plan (Recurring Profit Basis): 13.1% (prior year: 15.4%; our estimate vs. full-year actual)
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