ORIENTAL LAND CO.,LTD. Q1 FY2026 earnings call

• Overall Financial Performance

  • Consolidated revenue, operating profit, and operating cash flow all hit record highs for any 1st quarter in company history, driven by increased per-guest spending and higher hotel revenue, with full-year operation of Fantasy Springs contributing heavily to the results
  • All actual results exceeded the company's prior performance guidance for the quarter

• Theme Park Operational Updates

  • Full operation of Fantasy Springs was launched in the quarter, after operational restrictions were lifted in April to accommodate more guests
  • Annual attendance stayed nearly flat year-over-year: negative pressure from the absence of pre-closure demand for Space Mountain (seen in the prior year quarter) and more rainy weekends was offset by Fantasy Springs operation and growth in international guests
  • Per-guest revenue grew across all categories: higher attendance and Premier Access usage at Fantasy Springs, plus a higher mix of higher-priced tickets under dynamic pricing lifted attraction/shows revenue; growth in Duffy & Friends 20th anniversary merchandise offset a moderation in Fantasy Springs merchandise demand to lift retail revenue; full operation of Fantasy Springs food outlets lifted food and beverage revenue
  • Higher costs came from wage adjustments and increased headcount for personnel, higher maintenance expenses from investment transfer costs, higher system costs from IT equipment replacement, and higher depreciation from the full operation of Fantasy Springs

• Hotel Operational Updates

  • Full operation of Tokyo DisneySea Fantasy Springs Hotel drove solid growth in accommodation revenue
  • Overall Disney hotel occupancy dropped 0.2 percentage points year-over-year to 94.0% due to ongoing renovation work at some properties, while average daily room rate increased 9,931 yen year-over-year to 66,534 yen
  • Operating margin remained strong at 32.1%

1. Theme Park Segment: Revenue was 131.2 billion yen, an increase of 9.8 billion yen year-over-year. Operating profit was 29.2 billion yen, an increase of 1.1 billion yen year-over-year. Revenue contribution: 79.9% of total consolidated revenue. 2. Hotel Segment: Revenue was 28.5 billion yen, an increase of 5.7 billion yen year-over-year. Operating profit was 9.1 billion yen, an increase of 4.8 billion yen year-over-year. Revenue contribution: 17.4% of total consolidated revenue. 3. Other Businesses Segment: Revenue was 3.9 billion yen, a decrease of 0.2 billion yen year-over-year. Operating profit was 0.1 billion yen, a decrease of 0.4 billion yen year-over-year. Revenue contribution: 2.4% of total consolidated revenue. Total consolidated revenue for the quarter is 163.6 billion yen.

• Management maintained all existing full-year and first half-year (second quarter cumulative) consolidated performance guidance, with no upward or downward revisions at this time
• While near-term attendance has trended slightly weaker, booking trends for August and subsequent months have shown a recovering trend, which supports holding prior guidance steady

• Near-term attendance has been trending weaker in the period immediately following the 1st quarter
• Theme park attendance faces pressure from short-term factors including unfavorable weather (more rainy weekends) and the absence of temporary pre-closure demand from the prior year period
• Higher operating costs from wage inflation, increased personnel, depreciation on new Fantasy Springs assets, and higher maintenance/IT system expenses may pressure margins if revenue growth slows

No question and answer section was included in the provided transcript.