【6882 Profit Warning】Oriental Land's Profit Dropped 51% Year-on-Year Due to Global Economic Conditions and Japan Earthquake Rumors

Toyo Yu (06882)
Profit Warning. Toyo Yu expects to record a net profit attributable to owners of approximately HKD 35 million for the fiscal year 2025, representing a decrease of about 51% year-on-year.

Toyo Yu stated that the significant decline in net profit is due to multiple factors. In 2025, the global economic environment faces widespread challenges, mainly driven by escalating geopolitical tensions, rising international trade disputes, and ongoing fluctuations in tariff policies. These factors have increased market uncertainty, hindering global trade and investment liquidity.

Additionally, in the first half of the 2025 fiscal year, a rumor circulated widely on major social media platforms claiming that a Japanese manga artist predicted a major earthquake in Japan on July 5, 2025. Since the group’s travel-related products and services are primarily focused on Japan, this baseless speculation severely impacted travel enthusiasm for Japan, leading to a significant decrease in the number of Hong Kong residents traveling to Japan, despite Japan being a long-time popular destination for Hong Kong travelers. Ultimately, the predicted earthquake did not occur, and the rumor was proven to be unfounded. As a result, public interest in traveling to Japan gradually recovered, and consumer confidence also rebounded.

Toyo Yu stated that despite this recovery, the group’s travel-related business still experienced a significant decline in revenue and gross profit for the 2025 fiscal year, mainly due to the combined effects of the aforementioned global economic conditions and the temporary downturn in travel to Japan caused by the unfounded rumor. Although the group’s hotel division performed satisfactorily and showed strong growth, these adverse factors collectively led to a substantial decrease in overall profit.

Regarding the period after the 2025 fiscal year, recent conflicts in the Middle East have escalated. Since the group has no direct operations in the affected regions, based on current visibility, these events are not expected to have a significant impact on the group’s financial performance. However, management remains highly attentive to the broader geopolitical instability and its potential effects on consumer sentiment, travel patterns, or fuel costs.

Source: Toyo Yu Announcement

Financial Hot Talk

Is the role of gold as a safe haven failing? Are war fires triggering concerns about interest rate hikes?