Tokyo Disney operator's valuation soars as new ride takes off

Sep 05, 2019 | News On Japan

Sep 05, 2019 (Nikkei) - A new attraction at Tokyo Disney Resort is drawing big crowds that help sustain a major round of investments in the 36-year-old theme park site.

The Soaring: Fantastic Flight ride, which simulates a whirlwind tour around the globe, cost 18 billion yen ($170 million). One fan tweeted that it was "worth the wait in line," which often runs to around three hours even weeks after its late-July debut.

Tokyo Disney operator Oriental Land stock has hit fresh highs. With a market capitalization topping 5.6 trillion yen, Oriental Land is now the 12th-most-valuable listed Japanese company, topping such multinationals as Honda Motor and Nintendo.

Oriental Land has big spending plans lined up at the resort, which spans Tokyo Disneyland and Tokyo DisneySea. A "Beauty and the Beast"-themed area debuts in 2020, followed by a "Toy Story"-themed hotel in fiscal 2021, as part of efforts costing more than 100 billion yen.

The company plans to pour 250 billion yen into expanding Tokyo DisneySea. It earmarks about 100 billion to 150 billion yen a year in overall investments starting in fiscal 2020.

Strong earnings are fueling this capital spending. Oriental Land's net profit grew 11% on the year to a record 90.2 billion yen for the year ended March, when Tokyo Disney Resort celebrated its 35th anniversary. It had expected fewer visitors this year, since fiscal 2018 was so tough to follow, but attendance remains strong. The stock now trades at around 78 times forward earnings, but few analysts see it as overvalued.

Typhoon No. 15 Disrupts Obon Travel as ANA Cancels 58 Flights

Typhoon No. 15 (Chan-hom) began causing significant disruption to Japan's Obon holiday travel on August 11, with ANA canceling 58 flights serving Haneda and Narita airports, JAL canceling four flights, and JR East suspending some services on the Joban Line as the storm approached eastern Japan.

Typhoon No. 15 Set to Make Landfall in Kanto

Typhoon No. 15 (Chan-hom) was closing in on the Kanto region on the evening of August 11 and is expected to soon make landfall in or around Ibaraki Prefecture before crossing Honshu from east to west, an unusual path that could bring heavy rain, powerful winds and high waves across a wide stretch of Japan through August 12.

H3 Rocket No. 9 Successfully Launches Japan GPS Satellite

Japan's H3 Rocket No. 9 successfully placed the Michibiki No. 7 navigation satellite into its planned orbit after lifting off from the Tanegashima Space Center in Kagoshima Prefecture at 4:23 a.m. on August 11, marking the country's second consecutive successful H3 launch.

Tokaido Shinkansen Runs First Overnight Service

The Tokaido Shinkansen operated its first overnight service ahead of the Obon holiday period, offering travelers a 15,000 yen trip from the Tokyo area to Kyoto and Shin-Osaka while allowing them to save on hotel costs and arrive earlier than the first regular morning trains.

Typhoon No. 15 to Disrupt Travel on August 11

Typhoon No. 15 is expected to approach and likely make landfall somewhere in the Kanto region on August 11, bringing strong winds and heavy rain that could disrupt conventional rail services, expressways and flights while also affecting a wider area extending into Tohoku.

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