Keisei Electric Railway Co ( (KELRF) ) has released its Q2 earnings. Here is a breakdown of the information Keisei Electric Railway Co presented to its investors.
Keisei Electric Railway Co., Ltd., a prominent player in Japan’s transportation sector, provides railway, bus, taxi, and various other services, with a notable focus on enhancing infrastructure and customer experiences. The company recently released its semi-annual financial results for the six months ending September 30, 2024, demonstrating growth in revenue and profit across several segments.
In the first half of 2024, Keisei Electric Railway reported a 6.8% increase in operating revenue, reaching ¥158,033 million, and a 44.8% rise in operating profit to ¥22,079 million. Notably, the transportation segment, including railway, bus, and taxi services, saw significant improvements, with operating revenue climbing by 11.8% and operating profit surging by 79.6%. The company also highlighted its strategic merger with Shin-Keisei Electric Railway Co., Ltd., set to take effect in April 2025, and continued efforts to expand its real estate and leisure businesses.
Key financial metrics include a 16.1% increase in ordinary profit to ¥31,518 million and a modest 1.9% rise in profit attributable to owners of the parent, amounting to ¥21,496 million. The company maintained a strong financial position with total assets of ¥1,028,165 million, despite a decrease in cash and deposits, and improved its capital adequacy ratio to 45.8%. The company’s management also announced a three-for-one stock split effective January 2025, reflecting confidence in future growth.
Looking ahead, Keisei Electric Railway remains optimistic about its performance, reaffirming its financial forecasts for the year ending March 31, 2025. The company plans to capitalize on the increasing demand for transportation services, particularly with the anticipated growth in inbound tourism and the expansion of Narita Airport. With strategic initiatives and infrastructure enhancements underway, Keisei Electric Railway is well-positioned to achieve its long-term objectives.
