ENVALITH
東京都競馬株式会社 logo

TOKYOTOKEIBA CO.,LTD.

9672・Prime Market・Services

Official website
東京都競馬株式会社 logo
TOKYOTOKEIBA CO.,LTD.9672

Business

Tokyo Keiba Co., Ltd. is a Tokyo Stock Exchange Prime Market-listed company established in 1949. Its core operations center on the Public Sports Racing Business (approximately 71% of net sales), which includes leasing public sports racing facilities such as Oi Racecourse and Isesaki Auto Race Track and operating the Minami-Kanto 4 Racecourses Home Betting System "SPAT4". The company also operates in three other segments: the Amusement Park Business, which operates Tokyo Summerland; the Warehouse Leasing Business, which leases logistics facilities in Shinagawa Ward, Ota Ward, and Narashino City in Chiba Prefecture; and the Service Business, which handles the commercial facility "Villa Oi (Shopping Mall)" and the Air Conditioning Equipment Business (TAC Corporation). Major customers include local public entities such as the Tokutoku Ward Kyoba Kumiai (Special Ward Horse Race Association) (25.3% of net sales), as well as logistics tenant companies. The company operates its businesses through 5 consolidated subsidiaries.

Business Model

The company leases facilities such as Oi Racecourse and Isesaki Auto Race Track to local governments, receiving 4.5% of pari-mutuel ticket sales as rental fees. In addition, by combining SPAT4 operating revenue, warehouse leasing income (profit margin of 65.6%), and commercial facility/office leasing income, the company achieves a stable and highly profitable earnings structure. A key feature is its asset-utilization model, which leverages self-owned real estate across multiple businesses.

Company Strengths

In the 3rd Medium-Term Management Plan covering 2021–2025, the company achieved net sales of ¥41,758 million, operating income of ¥15,414 million, net income of ¥10,461 million, ROE of 11.3%, and ROIC of 9.7% in the final fiscal year (FY2025, ending December 2025), exceeding all performance targets set out in the plan. Over the five-year period, net sales grew 31% from ¥31,801 million to ¥41,758 million.

The Warehouse Leasing Business achieved an extremely high segment profit margin of 65.6% (net sales of ¥6,094 million, segment profit of ¥3,999 million). Full-year operation of the Narashino Akanehama No. 2 Warehouse (which became operational in April 2024) drove a 4.7% year-on-year increase in sales and a 15.0% increase in profit. The company has also succeeded in raising rents upon renewal of existing contracts, against a backdrop of tight supply-demand conditions in logistics real estate.

SPAT4, the internet betting service, handled sales for 15,082 races at regional racecourses nationwide, and annual sales at Oi Racecourse hit a record high for the first time in two years. The Public Sports Racing Business achieved net sales of ¥29,694 million and segment profit of ¥12,180 million (up 9.4% year on year), which was the main driver of operating cash flow of ¥19,901 million (up 23.6% year on year).

ENVALITH's Perspective

For the first quarter of FY2026 (ending December 2026), the company secured revenue growth with sales of ¥9,366 million (up 1.1% year on year), but each profit line fell short of the prior-year period, with operating profit of ¥3,239 million (down 1.1% year on year) and net profit attributable to owners of the parent of ¥2,144 million (down 5.6% year on year). The absence of extraordinary gains recorded in the same period last year (subsidy income of ¥64,500 thousand, gain on sale of fixed assets of ¥26,374 thousand, and insurance proceeds of ¥23,237 thousand) was a factor behind the decline in net profit. There has been no revision to the full-year earnings forecast (sales of ¥42,597 million, operating profit of ¥15,827 million), and progress against the plan is judged to be broadly within expectations.

The Amusement Park Business (Tokyo Summerland) recorded a segment loss of ¥307 million in Q1 FY2026 (ending December 2026). This business follows a seasonal model in which the majority of annual sales are concentrated in the outdoor pool operating period (summer, Q3), making Q1 structurally loss-making. While measures such as fee revisions and IP collaborations are being pursued, the sustainability of profitability improvement warrants continued monitoring.

Under the 4th Medium-Term Management Plan, the company is planning large-scale investments including the development of a new training center, redevelopment of the racecourse, and consideration of an arena, and construction in progress has been on an increasing trend, reaching ¥4,406 million at the end of Q1 FY2026 (ending December 2026), up from ¥4,153 million at the end of the previous fiscal year. A key point from a financial management perspective is balancing the investment plan with the repayment schedule of interest-bearing debt, which includes ¥10,000 million in corporate bonds due within one year. As an external factor, attention should also be paid to how supply-demand trends in the logistics real estate market affect rent levels in the Warehouse Leasing Business.

Growth Strategy

A growth strategy centered on urban development in the Oi area, targeting FY2030 revenue of ¥48.0 billion and operating profit of ¥19.0 billion under the 4th Medium-Term Management Plan

Large-scale redevelopment around Oi Racecourse is being promoted as a core initiative of the 4th Medium-Term Management Plan. Construction in progress increased to ¥4,406 million at the end of Q1 FY2026 (ending December 2026), with facility function enhancements such as the renewal of the extra-high voltage substation underway. The initiative aims to maintain and improve the long-term racing environment and revitalize the local area.

Continued promotion of the spread of internet betting via SPAT4 (Minami-Kanto 4 Racecourses Home Betting System) as a growth driver for the Public Sports Racing Business. Against a backdrop of expanding sales at Oi Racecourse and favorable trends at Isesaki Auto Race, Public Sports Racing Business revenue for Q1 FY2026 (ending December 2026) was ¥7,097 million (up 1.1% year on year), securing revenue growth.

The Narashino Akanehama Warehouse No. 2, which began operations in April 2024, has achieved stable operation, with segment revenue for Q1 FY2026 (ending December 2026) of ¥1,542 million (up 2.3% year on year) and a profit margin of approximately 66.9% maintained. Efforts continue to attract new tenants to the Multi-Tenant Warehouse Leasing facility in the Katsushima District 2 area and to negotiate rent increases upon renewal of existing contracts.

The revenue base is being strengthened through the full-year operation of "Villa Oi Building No. 2," completed in March 2024, and the theater "Theater H." Segment profit for the full year of FY2026 (ending December 2026) is planned at ¥430 million (up 25.3% year on year), with ¥128 million recorded in Q1 FY2026 (ending December 2026).

Efforts are underway to increase customer spending through fee revisions for 1-day passes and paid seating, attract new customers through collaboration projects with popular IPs, and utilize the new pool "MONSTER STREAM," which opened in June 2024. However, Q1 FY2026 (ending December 2026) recorded a segment loss of ¥307 million, with the structural deficit continuing; summer visitor numbers will be key to full-year profitability.

Last updated: July 17, 2026