Odakyu Electric Railway released its results for the first quarter of the fiscal year ending March 2027. Revenue increased 3.5% year on year to ¥101.735 billion, while operating profit rose 6.9% to ¥16.34 billion. Net income, however, fell 16.6% year on year to ¥11.622 billion.
Odakyu Electric Railway reported revenue of ¥101.735 billion, operating profit of ¥16.34 billion, ordinary income of ¥16.214 billion and net income of ¥11.622 billion for the first quarter of the fiscal year ending March 2027. Revenue, operating profit and ordinary income all increased year on year, while net income declined significantly. The decline in net income was due to the impact of the gain on the sale of investment securities recorded in the same quarter of the previous year, rather than weakness in the core business, the company said. Progress toward the full-year forecast was 22.1% for revenue, 30.3% for operating profit, 33.8% for ordinary income and 30.3% for net income, generally ahead of the standard pace.
The company operates three businesses: transportation, lifestyle services and real estate. Transportation is the largest profit contributor, with first-quarter operating profit of ¥11.455 billion for the fiscal year ending March 2027, accounting for approximately 70% of the total. The transportation business's strong profitability was supported by growth in passenger numbers, fare revisions and the capture of tourism demand.
The transportation business contributed through both its railway and bus operations. Railway operating revenue was ¥34.423 billion, driven by increased use of commuter passes and non-commuter services. Bus operating revenue was ¥10.101 billion, supported by fare revisions. Sales of the Hakone Freepass reached a record high, while sales to inbound tourists also reached a record high.