TOKYU RECREATION CO.,LTD. (E04588) Stock Price

Tokyu Recreation is an entertainment company with two core business pillars: an imaging business centered on movie theater operations, and a life design business that operates bowling alleys, fitness facilities, hotels, and other leisure services. As a member of the Tokyu Group, the company develops diverse services that enrich people's leisure time. Additionally, the company operates a real estate rental business as a stable revenue source, diversifying its business portfolio.

The company's revenue structure is primarily driven by movie theater admission fees and usage fees from bowling alleys and fitness facilities. For its hotel business, the company delegates operations to subsidiaries in Hiroshima and Kumamoto, providing community-focused services. The real estate business generates stable cash flow through rental income from office buildings and residential properties.

The business is divided into three segments: imaging, life design, and real estate. The imaging business manages movie theaters and also handles event planning and production. The life design business operates a wide range of facilities including bowling alleys, fitness centers, sports courts, restaurants, and retail shops. Additionally, the subsidiary TR Services handles building management operations, contributing to operational efficiency across the entire group.

Tokyu Recreation operates under the management vision of "Designing Entertainment Life" and pursues a growth strategy built on three pillars: the video business, the life design business, and the real estate business. Given the business characteristics that make it susceptible to fluctuations in the movie theater market, the company has set operating profit—rather than revenue—as its primary management indicator, with an operating profit target of 886 million yen for the next fiscal year. To guide capital investment for sustainable growth, the company uses EBITDA (operating profit plus depreciation) as a supplementary indicator, ensuring efficient management of cash flow generated from business operations.

The company is advancing development of "Tokyu Kabukicho Tower" as its most important project, with opening planned for spring 2023. This large-scale complex facility aims to create new value in the entertainment sector, leveraging expertise built through traditional movie theater operations while developing more compelling product offerings. The company also plans to open a cinema complex in the Shibuya district, working to expand its presence in the entertainment sector by capitalizing on collaboration within the Tokyu Group.

In the video business, the company focuses on enhancing the quality of the theatrical viewing experience and expanding ancillary revenue through theater promotion and other effective theater utilization strategies. In the life design business, the company is actively expanding "Anytime Fitness" locations against the backdrop of growing health consciousness, aiming to establish a stable revenue base. In the hotel business, the company is working toward recovery from the pandemic through aggressive sales promotion activities such as group customer recruitment and implementation of appropriate revenue management systems.

While affected by the COVID-19 pandemic, the company continues business operations through comprehensive infection control measures and is strengthening its management foundation for rapid performance recovery following the end of the pandemic. In the real estate business, the company maintains revenue from existing properties while building ongoing cooperative relationships with owners and tenants, serving as a cornerstone of revenue stabilization. The company monitors external environmental changes carefully and pursues sustained corporate value enhancement as a core entertainment company within the Tokyu Group.