[Summary]
Tokyo Horse Racing secured increased sales and profits in the fiscal year ending December 2025, with sales of 41,758 million yen, operating profit of 15,414 million yen, and net income attributable to owners of parent company of 10,461 million yen. The main source of revenue is the Oi Racecourse-related facilities and the public competition business, which includes the at-home voting system SPAT4, and warehouse rentals are also a stable source of income. On the other hand, the amusement park business, which includes Tokyo Summerland, is susceptible to changes in weather and visitor numbers. Recently, a public offering for SPAT4 construction work has been announced, and the future stock price evaluation will depend on whether growth investments will lead to increased profits in addition to sustained high profits.
Overview
Tokyo Keiba is involved in the rental of facilities related to Oi Racecourse, the at-home voting system SPAT4, Tokyo Summerland, warehouse rental, and facility management services.
Sales: 41,758 million yen Operating income: 15,414 million yen Final profit: 10,461 million yen YoY: Increase in sales and profit
The overall business was supported by stable income from publicly managed competitions and warehouse rentals, and high profit margins stood out.
Financial Highlights (Simple Table)
| Indicators | Contents |
|---|---|
| Sales | 41,758 million yen, 3.3% increase from the previous year |
| Operating income | 15,414 million yen, 10.7% increase |
| Final profit | 10,461 million yen, 7.8% increase |
| Factor 1 | Public competition business including SPAT4 is doing well |
| Factor 2 | Improving profitability of warehouse rental and service businesses |
The operating profit margin was 36.9%, an improvement from 34.4% in the fiscal year ending December 2024.
What happened (most important)
Quantity
The publicly managed racing business benefited from the expansion of local horse racing sales and the increased use of internet voting. In Tokyo Horse Racing's business introduction, SPAT4 is positioned as a platform for selling pari-mutuel betting tickets for South Kanto Four Racecourses and other races over the Internet, and in terms of volume, the increase in use via digital is seen as the core.
On the other hand, the amusement park business suffered from a decline in the number of visitors for the full year ending December 2025. Tokyo Summerland has the ability to attract customers, often selling out on busy days, but annual results are subject to fluctuations due to weather and seasonal factors.
Price
In the warehouse rental business, the strength of the logistics location centered on the Katsushima area leads to stable earnings. It is thought that the structure supports profit margins not only by a simple increase in volume, but also by room for improvement in rental conditions backed by locational value.
Cost
The amusement park business has relatively large fixed costs, and fluctuations in the number of visitors can easily turn into profit. In addition, Tokyo Racing's medium-term management plan calls for the construction of a new training center, the evolution of SPAT4, and urban development in the Oi area, so cost control during the upfront investment phase will become important in the future.
money order
The company's main business is domestic facility rental and domestic leisure operations, and its business performance is not directly influenced by exchange rates. As for the external environment, this is a phase in which we are looking at indirect impacts through prices and energy costs.
Latest materials (3 months)
In February 2026, full-year financial results for the fiscal year ending December 2025 were disclosed, and sales, operating income, and net income all exceeded the previous year. The company has announced plans to increase sales and profits in the fiscal year ending December 2026, and the base of its business performance can be said to be solid.
On April 23, 2026, a public announcement was made regarding construction work for the South Kanto Four Racecourses at-home voting system SPAT4. This can be seen as a move that will lead to strengthening the foundation of the company's main business, rather than just maintenance. While this may involve an investment burden in the short term, it is likely to be beneficial in maintaining competitiveness in the medium term.
On April 24, 2026, the completion of payment for the disposal of treasury stock as restricted stock compensation was disclosed. Although the impact on business performance is limited, it can be seen as a medium- to long-term incentive design for management.
It has been announced that tickets for Tokyo Summerland will be sold out on May 3, 2026, confirming that leisure demand will be strong on busy days. However, the amusement park business is highly seasonal throughout the year, and selling out on a single day does not necessarily mean stable profits for the entire year.
In relation to stock prices, continued high profits and reinvestment in the main voting system are likely to be positive factors. On the other hand, in situations where it is difficult to predict when the investment will be recovered, additional performance confirmation will be necessary to further improve the evaluation.
Business structure
Source of revenue
Key point SPAT4 Key point Key point Key point
Profit margin
Operating profit margin is at a high level of 36.9%. Facility rental and system-related businesses are heavily weighted, and profit margins tend to be higher than in restaurant and retail businesses.
Strengths
Key point SPAT4 Key point
Weaknesses
Key point Key point Key point
Implications for stock prices
Positive
2025, Key point SPAT4
Negative
Key point Key point Key point
Weaving
High profit margins and stable return on assets are easy to evaluate, but in order to be bought as a growth stock, specific monetization of investment projects is likely to be necessary.
Gap
Although its current performance is solid, future stock evaluations will differ depending on whether you view it as a ``stock with stable earnings'' or ``a company that grows through reinvestment.'' If we can confirm the progress of the SPAT4 update and the Oi area strategy, there is room for our evaluation to change.
Short term (6 months)
SPAT4 2026 Key point's summer visitor attraction
In the short term, the focus will be on the extent to which the leisure business can complement the company while maintaining the strength of its main business.
Mid-term (1 year)
2030 Key point SPAT4?
In the medium term, whether investment leads to both asset value and profit growth is more important than single-year profit increases.
Scenario analysis
Bullish: 35% If SPAT4's foundation continues to strengthen and sales from publicly managed competitions continue to expand, and warehouse rentals become stable, the quality of earnings will be reevaluated and the stock price will likely rise.
Neutral: 45% Even if public competitions and warehouse rentals are strong, if the investment burden and the amusement park business continue to fluctuate, stock prices are likely to remain flat.
Bearish: 20% If the company's mainstay publicly managed competition business is sluggish and only the investment burden takes over, expectations for profit growth may fall and weigh on stock prices.
Risk (simple table)
| Risk | Contents |
|---|---|
| Demand | Slowing sales trends for publicly managed competitions will affect profits |
| Weather | The number of visitors to Tokyo Summerland tends to fluctuate |
| Investment | Possibility of delay in recovery of SPAT4 and redevelopment investments |
Summary
2025 SPAT4, Key point
Rather than simply being a leisure stock, Tokyo Horse Racing is closer to reality when viewed as a profitable company that combines horse racing infrastructure and real estate assets. Current business performance is stable, but for the next evaluation to rise, it will be necessary to confirm to what extent the SPAT4 renovation and Oi area investment will lead to profit growth.