TOKYO DOME CORPORATION (E04605) Stock Price

Tokyo Dome is a company whose core business is comprehensive entertainment operations centered in the Suidobashi district of Tokyo. The company operates Tokyo Dome, a famous baseball stadium, as its flagship facility, along with hotels, an amusement park, bathing facilities, and restaurants as an integrated complex, providing entertainment and services to a broad customer base. The company also operates cosmetics retail stores, manages real estate rentals, and runs resort hotels.

The company's primary customers include event attendees at professional baseball games and concerts, visitors to various facilities within Tokyo Dome City, and users of cosmetics stores and rental properties. Revenue comes from diverse sources including facility admission fees, usage fees, food and beverage sales, merchandise sales, accommodation fees, and real estate rental income. The company has built a stable business model with high repeat customer usage.

The company's operations are divided into five main segments. "Tokyo Dome City" operates the baseball stadium, hotels, amusement park, and bathing facilities. The "Distribution" segment operates cosmetics and general merchandise retail stores. The "Real Estate" segment manages rental properties outside the Suidobashi district, the "Atami" segment operates a resort hotel in Shizuoka Prefecture, and the "Velodrome" segment operates a cycling track in Matsudo, Chiba Prefecture. Through this diversified business portfolio, the company stabilizes its revenue.

Tokyo Dome has set clear numerical targets under its medium-term management plan "New Initiatives" (five-year period from February 2016 to January 2021) to enhance corporate value. The company aims to achieve consolidated operating profit of 13 billion yen and interest-bearing debt of 139 billion yen by January 2021. For financial metrics, it targets a return on total assets of 4% and return on equity of 6%. Regarding dividend policy, the company has committed to a base dividend of 12 yen per share, plus performance-linked dividends on consolidated net income exceeding 6 billion yen, demonstrating an active approach to shareholder returns.

The company's priority investment areas focus on enhancing the value of facilities centered on Tokyo Dome and expanding stadium business. It has installed high-density Wi-Fi with 302 access points throughout the stadium, creating communication infrastructure that allows customers to comfortably use original services provided by event organizers. To improve the spectating experience, the company has added eight private rooms in the infield second-floor standing area to accommodate group viewing demand, pursuing higher profitability through differentiated viewing environments.

For new market development, Atami Korakuen Hotel has been converted into "ATAMI BAY RESORT KORAKUEN," a multi-purpose resort facility establishing a new business model. The facility is strengthening visitor circulation between hotel guests and ropeway users, conducting sales activities to attract day-trip bus tours, and improving revenue through the provision of unique seaside resort experiences. Regarding inbound tourism, activities were temporarily suspended due to COVID-19, but the company is preparing promotional campaigns for international visitors in anticipation of the Tokyo Olympic and Paralympic Games.

In technological innovation, the company is promoting the "AAA" safety management model across the group to improve overall safety management standards. This model systematizes "actions in all safety management," identifying and addressing weaknesses in conventional safety activities to establish cross-group safety management systems. Additionally, food and beverage and retail shops within Tokyo Dome are undergoing renovations based on customer purchasing behavior analysis, including the installation of large eat-in free spaces and walk-in specialty shops, aiming to establish highly profitable operational models.