ENVALITH
株式会社歌舞伎座 logo

KABUKI-ZA CO., LTD.

9661・Standard Market・Services

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株式会社歌舞伎座 logo
KABUKI-ZA CO., LTD.9661

Business

KABUKI-ZA Co., Ltd. was established in 1949 and is listed on the Standard Market of the Tokyo Stock Exchange. The company owns and operates the KABUKI-ZA (Ginza, Tokyo), Japan's foremost hall dedicated to traditional performing arts. Its operations comprise three segments: Real Estate Leasing Business (61.2% of net sales), Dining & Food Service Business (18.8%), and Retail Shop Business (20.0%). Its main customers include Shochiku Co., Ltd., which leases the theater (accounting for 52.4% of net sales), as well as domestic and international tourists and kabuki fans who visit the KABUKI-ZA. The consolidated subsidiary Kabuki-za Service Co., Ltd. handles the dining and retail businesses, providing services to theater visitors on a group-wide, integrated basis.

Business Model

The core of revenue is theater leasing to Shochiku Co., Ltd., with stable long-term rental income forming the business foundation. In addition, consolidated subsidiaries operate dining establishments and retail shops both inside and outside the theater, capturing demand from visitors to kabuki performances. The company employs a composite revenue model aimed at increasing per-visitor spending and drawing power through limited-edition products and menus tied to performance programs and seasons, product offerings targeted at inbound tourists, and regular events held at Kobikicho Plaza.

Company Strengths

The company owns the current KABUKI-ZA theater, completed in 2013, and secures stable rental income by leasing it to Shochiku Co., Ltd. Sales in the Real Estate Leasing Business reached ¥1,900 million (FY2025, ending February 2025), with a segment profit margin of 30.4% (FY2026, ending February 2026), forming the foundation of the group's earnings. The irreplaceable location and brand serve as a barrier to entry.

The company has had no interest-bearing debt from FY2023 (ending February 2023) through FY2025 (ending February 2025), and both the cash flow-to-interest-bearing debt ratio and interest coverage ratio are not applicable (no debt). The equity ratio rose to 46.4% (end of FY2025, ending February 2025), and the company maintains sound financial health with net assets of ¥11,293 million against total assets of ¥24,349 million.

Operating losses continued in FY2022 (ending February 2022) and FY2023 (ending February 2023), but the company returned to profitability in FY2024 (ending February 2024) with operating profit of ¥203 million. This expanded to ¥218 million in FY2025 (ending February 2025) and ¥379 million in FY2026 (ending February 2026), with the Retail Shop Business segment profit increasing 97.8% year-on-year to ¥111 million, and the Dining & Food Service Business turning from a loss to a profit of ¥17 million, as earnings improvement progressed across all segments.

ENVALITH's Perspective

The company's full-year forecast for FY2027 (ending February 2027) calls for operating profit of ¥339 million (down 10.3% year on year), indicating a profit decline. However, first-quarter operating profit of ¥103 million already accounts for approximately 30% of the full-year forecast, representing favorable progress. That said, the current quarter includes a settlement payment of ¥27 million recorded as an extraordinary loss, and attention should be paid to the risk of additional extraordinary losses arising over the full year. There has been no revision to the earnings forecast since it was announced on April 13, 2026.

Comprehensive income for the first quarter was significantly negative at ¥-207 million. This was mainly attributable to a decrease of ¥292 million (after tax effect) in valuation difference on available-for-sale securities, resulting from mark-to-market valuation of investment securities. The balance of investment securities stood at ¥5,235 million, accounting for approximately 22% of total assets, representing a structural risk whereby stock market conditions directly affect net assets and the equity ratio. In the same quarter of the prior year, the same valuation difference was +¥567 million, indicating substantial volatility.

The majority of sales in the Real Estate Leasing Business depends on the leasing contract with Shochiku Co., Ltd., and the concentration risk whereby the company's performance is directly linked to Shochiku's production plans and business conditions has not been resolved. In addition, depreciation and facility maintenance costs related to tangible fixed assets (buildings and structures, net, of ¥6,473 million) are a factor in profit variation. Depreciation expense for the first quarter was ¥108 million (including intangible fixed assets), and close attention should be paid to trends in the full-year capital expenditure plan.

Growth Strategy

Aiming for sustainable growth through three pillars: enhancing the value of owned assets, addressing inbound demand, and improving dining profitability

Rent revisions have been implemented for tenants, and revenue from the Real Estate Leasing Business steadily increased to ¥504 million (up 0.5% year on year) in Q1 FY2027 (ending February 2027), with segment profit of ¥172 million (up 4.3% year on year). The company continues to promote the strengthening of its revenue base through optimization of rent levels.

The company is promoting merchandise sales and dining development at theaters outside of KABUKI-ZA (Theater Milano-Za). In Q1 FY2027 (ending February 2027), merchandise sales at "Kabukicho Grand Kabuki" significantly exceeded expectations, greatly contributing to a 23.5% year-on-year increase in Retail Shop Business revenue. Expansion into external theaters is contributing to revenue diversification.

The trend of increasing tourist visits to KABUKI-ZA continues, and the company is promoting a strategy to capture inbound demand by strengthening its product lineup for the Foreign Tourist Corner. The segment profit margin of the Retail Shop Business remained at a high level of 22.1% in Q1 FY2027 (ending February 2027), with the focus on high-margin, best-selling products proving successful.

Sales of meals and bento boxes commemorating the name-succession performances held in May exceeded expectations, and profitability improved with Dining & Food Service Business revenue up 4.9% year on year and segment profit up 15.1% year on year. The development of limited-time menus linked to performances and seasons is boosting visitors' purchasing intent.

Last updated: July 17, 2026