Tokyo Horse Racing
Basic Information
- Stock Code
- 9672
- Industry
- Services
- Category Detail
- Leisure & Recreation Facilities
- Prefecture
- Tokyo
- Establishment Year
- December 1949
- Listing Year
- September 1955
- Official Website
- https://www.tokyotokeiba.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Taihei Electric, B-Gree, Oyo Gijutsu, Japan Ecosystem
Overview
Tokyo Horse Racing is a third-sector company founded in 1949, serving as a major industry player that operates horse racing and auto race facilities centered around Oi Racecourse, along with related services.
Current Situation
Tokyo Horse Racing recorded consolidated net sales of 40.443 billion yen, operating income of 13.926 billion yen, and net income of 9.706 billion yen for the fiscal year ending December 2024, maintaining a solid revenue base. Its main pillars are the operations of Oi Racecourse and Isesaki Auto Racecourse facilities, with a focus on hosting horse races and auto races, as well as strengthening commercial and entertainment functions within the facilities. As of the end of December 2019, paid-in capital was approximately 10.5 billion yen, with 167 consolidated employees, establishing an efficient operational structure. Tokyo holds 27.98% as the largest shareholder, collaborating with the Tokyo Metropolitan Government and the Special Wards Horse Racing Association to promote community-rooted businesses. It is also diversifying into new ventures such as shopping mall operations and Kobayashi Ranch. In the medium to long term, it aims to expand its fan base through the redevelopment of Oi Racecourse and enhancement of entertainment functions, promoting horse racing culture and optimizing facility utilization. Going forward, it plans to strengthen customer touchpoints through digitalization and improve facility efficiency to achieve sustainable profitability improvements and advance growth strategies.
Trivia
Interesting Facts
- Tokyo Horse Racing owns one of the largest facilities among Japan's regional racecourses.
- Oi Racecourse is a downtown sports viewing hub with diverse races and entertainment facilities.
- Tokyo Summerland is stably operated by a subsidiary of Tokyo Horse Racing.
- Isesaki Auto Racecourse in Gunma Prefecture is a representative auto race venue in Japan.
- Inherits former prefectural horse racing in the Niigata district, maintaining local horse racing culture.
- Subsidiary Tokyo Warehouse leverages its location as a key logistics service hub.
- Commercial facility Wira Oi is a complex usable by non-racecourse visitors.
- Aims for fan base expansion through long-term integration of horse racing and local events.
- Combined hosting of horse racing and auto races is unique in the regional horse racing world.
- Serves as a bridge between public and private sectors as a third-sector company of Tokyo.
Hidden Connections
- Tokyo and Special Wards Horse Racing Association as major shareholders ensure operational stability.
- Tokyo Summerland handles amusement park operations as a group company of Tokyo Horse Racing.
- Isesaki Auto Racecourse operations inherited after establishment of group company Kanto Kosan.
- Tokyo Horse Racing's equity-method affiliates efficiently handle racecourse-related facility operations and maintenance.
- Commercial facility operations complement racecourse foot traffic, forming a diversified revenue structure.
- Information technology companies listed by Nikkei as related stocks have cross-industry information linkages.
- Implemented unique reorganization strategy adapting to environmental changes in horse racing and auto race industries.
- Advantageous funding through major shareholders including Tokyo Dome and other large companies.
Future Outlook
Growth Drivers
- Enhanced facility appeal and increased visitors through Oi Racecourse redevelopment
- Fan base expansion and new service creation via digital technology utilization
- Synergy effects with diversified entertainment businesses
- Improved social trust through strengthened local collaborations
- Potential expansion of new businesses and facility operation expertise to other municipalities
Strategic Goals
- Completion of Oi Racecourse entertainment function enhancement and redevelopment
- Social value creation through strengthened community collaborations
- Operational efficiency and customer experience improvement via digital transformation
- Building revenue diversification and sustainable growth model
- Business development considering environment, society, and governance (ESG)
Business Segments
Facility Operations Outsourcing
- Overview
- Undertakes horse racing and auto race facility operations for governments and local authorities, and manages commercial facilities.
- Competitiveness
- Expertise in regional horse racing facility operations
- Customers
-
- Local governments
- Horse racing associations
- Event operators
- Commercial tenants
- Products
-
- Racecourse operation services
- Auto racecourse management
- Commercial facility operation management
- Event planning and operation support
Real Estate and Warehouse Leasing
- Overview
- Provides leasing of own warehouses and logistics centers along with ancillary services.
- Competitiveness
- Highly convenient facilities located in Tokyo
- Customers
-
- Logistics companies
- Manufacturing
- Retail
- IT companies
- Products
-
- Logistics warehouse leasing
- Storage services
- Picking and packing operations
- Facility management services
Consulting and Facility Planning
- Overview
- Provides facility utilization planning and consulting based on horse racing facility operations.
- Competitiveness
- Long years of sports facility operation experience
- Customers
-
- Local governments
- Sports organizations
- Event organizers
- Products
-
- Facility utilization planning
- Business improvement proposals
- Event operation support
Advertising and Promotion
- Overview
- Plans and operates horse racing and auto race-related advertising and events.
- Competitiveness
- High reach to horse racing fans
- Customers
-
- Horse racing-related companies
- Local governments
- Products
-
- On-site advertising
- Event planning
- Digital promotion
Related Equipment Works
- Overview
- Provides technical services such as air conditioning equipment works through group subsidiaries.
- Competitiveness
- Rapid response through group collaboration
- Customers
-
- Group subsidiaries
- External companies
- Products
-
- Air conditioning equipment works
- Facility maintenance
Competitive Advantage
Strengths
- Stable financial base with Tokyo as top shareholder
- Operation of multiple directly managed horse racing facilities including Oi Racecourse
- Diversified leisure and logistics business expansion
- Long track record in horse racing and auto race operations
- Strong community collaboration structure
- Diversification promotion through efficient subsidiary management
- High brand recognition among horse racing fans
- Facility redevelopment strength backed by abundant management resources
- Multiple business portfolio supporting solid revenue generation
- Risk diversification enabled by consolidated operations
Competitive Advantages
- Strong support system from Tokyo and Special Wards Horse Racing Association
- High customer draw of Oi Racecourse located in the greater Tokyo metropolitan area
- Composite business in horse racing, auto racing, and amusement parks
- Diverse revenue sources including commercial facilities and logistics leasing
- Focus on racecourse redevelopment and entertainment function enhancement
- Efficiency in facility operations and maintenance through group subsidiaries
- Strengthened fan touchpoints using diverse channels
- High social trust and contribution to local economy
- Operational capabilities adapted to industry-specific regulatory environment
- Business structure accompanied by stable cash flow
Threats
- Risk of declining horse racing and auto race participants in Japan
- Potential shrinkage of fan base due to aging population and low birthrate
- Increasing burden of large-scale investments due to facility aging
- Intensifying competition from emerging leisure markets and digital entertainment
- Uncertainty in business operations due to regulatory changes
- Risk of reduced consumer spending due to economic fluctuations
- Customer attraction competition from competitors' facility expansions
- Impacts from unforeseen events such as natural disasters or infectious diseases
Innovations
2024: Opening of Theater H at Oi Racecourse
- Overview
- Opened new entertainment facility Theater H inside Oi Racecourse in June 2024.
- Impact
- Contributes to increased facility visitors and creation of diverse revenue sources
2023: Opening of offt Isesaki Auto Racecourse
- Overview
- Installed offt Isesaki regional revitalization facility within Isesaki Auto Racecourse.
- Impact
- Supports local exchange promotion and event expansion
2022: Enhanced Digital Betting System
- Overview
- Expanded smartphone-compatible online betting environment to improve fan convenience.
- Impact
- Contributes to sales growth and acquisition of younger customers
2021: Integrated Operation of Niigata District Former Horse Racing Facilities
- Overview
- Inherited Niigata Prefecture's former prefectural horse racing facilities, achieving regional business dispersion and efficiency.
- Impact
- Contributes to strengthening regional bases and revenue diversification
Sustainability
- Promotion of energy-saving facility operations
- Environmental conservation activities in collaboration with local communities
- Active recruitment and development of diverse talent
- Advancement of facility barrier-free modifications
- Operational efficiency improvement through digitalization