7-Eleven Parent Delivers Strong Quarter As Takeover Heat Builds
The Japanese retail giant, which operates the 7-Eleven chain, reported an operating profit of ¥65.1 billion (US$445.2 million), surpassing the ¥58 billion average estimate from six analysts polled by LSEG.
While domestic convenience store profits declined, the group benefited from higher margins in its US operations due to an expansion of proprietary products and better labour cost management. Net profit also received a boost from asset sales by its retail unit, Ito-Yokado.
As part of ongoing restructuring efforts, Seven & i has announced a share buyback, divested non-core assets and is planning a public listing of its North American convenience store business. The company spent around ¥156 billion on share repurchases as of end-June.
Despite the earnings beat, Seven & i shares closed down 1.6% ahead of the results and are down 13% year-to-date. The retailer maintained its full-year earnings forecast.
Reuters Related
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
40 minutes ago
- The Star
Will speeding up the rail line for Northern Metropolis entice Hong Kong developers?
The Hong Kong government's plan to speed up the construction of the rail backbone of the Northern Metropolis near the border with mainland China will make the megaproject more appealing to developers, but whether they will be persuaded to invest is another matter, experts have said. Amid a depressed property market, developers have voiced concerns over their profit margins if they commit to building in the hub, which Hong Kong and Macau Affairs Office Director Xia Baolong urged the city to complete as soon as possible. Sources told the Post that a key topic for Xia during his recent visits to Hong Kong was the Northern Metropolis and its potential as the city's next game changer for its economic future. On Tuesday, the Transport and Logistics Bureau announced a first-phase deal with the MTR Corporation that would lower the cost of construction and bring forward the completion of a cross-border spur line by at least two years to 2034. The deal covers the creation of the Northern Link spur line, which will start at Chau Tau station and end at Shenzhen's Huanggang Port station, allowing commuters to cross the border with greater ease. Financing for the Northern Link will be boosted by the government granting the rail giant 10 development sites and deducting HK$39.05 billion (US$4.97 billion) from its land premiums. It also opens the door for the company to work with mainland partners. Professor Lau Siu-kai, a consultant with Beijing's semi-official think tank, the Chinese Association of Hong Kong and Macau Studies, said the government was seeking to show its determination to expedite the project while at the same time incentivising private companies to invest in the development. 'Last year, Director Xia began urging Hong Kong to accelerate development, especially by having developers participate. He even led a group to Shenzhen to discuss this. To some extent, I believe the push to speed up railway construction is partly a response to the central government's particular concerns,' Lau said. He said he expected that the acceleration of the development of the Northern Metropolis would be a key theme of the next five-year plan covering national development strategies. 'If this is indeed the case, Hong Kong will need to drastically pick up the pace, cutting back on excessive procedures, fast-tracking the approval process for projects and even reducing unnecessary bureaucratic steps and rules,' Lau said. Formed around the San Tin Technopole and the neighbouring Hong Kong-Shenzhen Innovation and Technology Park in the Loop, the Northern Metropolis is viewed as critical for Hong Kong's future economic growth, with its potential to create about 650,000 jobs. About 2.5 million people are expected to live in the new area. In January, the Hong Kong Real Property Federation and the China Real Estate Chamber of Commerce urged the government to expedite infrastructure construction to enhance the development potential of sites and reduce uncertainties for investors. 'The early completion of transport infrastructure will benefit the relocation of residents, businesses, and academic institutions, leading to thriving human traffic that will boost overall economic development and increase developers' willingness to invest,' Louis Loong Hon-biu, a lawmaker and also the secretary general of the Real Estate Developers Association, said. Asked if the acceleration of infrastructure development could prod investors into action, Loong said the completion times of the different infrastructure projects would influence their plans. He also expressed hope that the government would communicate effectively with companies to introduce details of mainland standards to be used in the construction of the spur line, so players could prepare accordingly. Construction of the spur line is due to begin in 2027 and end in 2034, the same year the Northern Main Line is scheduled to go into operation. Kathy Lee, head of research at commercial property agency Colliers, said the earlier completion date and the HK$39.05 billion (US$4.97 billion) in financing the government has offered to the MTR Corporation could boost market interest in the Northern Metropolis. But she noted it would still take nine years to complete the rail lines, while facilities would be ready to be occupied in the coming few years. 'The major concern of developers is about the occupancy rate, whether businesses are interested in setting foot in the project and need that much floor space,' Lee said. 'The market still has questions about that.' She suggested the government could help line up developers and innovation and technology companies hoping to set up offices in the city to tackle developers' concerns. But Vera Yuen Wing-han, an economics lecturer at the University of Hong Kong, said the government's new time frame might not incentivise developers to buy plots due to their current financial position. 'Many are grappling with substantial debt, which limits their capacity to bid on new land due to their cash flow,' she said. Last November, 85 business heavyweights pledged to support and participate in Hong Kong's Northern Metropolis megaproject. Yuen added that a critical factor influencing developer sentiment was the Northern Metropolis' proximity to the mainland and the ongoing integration between the two jurisdictions. Some fear investing heavily in the new development could lead to property values being benchmarked against mainland prices, which are generally lower. - SOUTH CHINA MORNING POST
Sinar Daily
an hour ago
- Sinar Daily
Bitcoin surpasses US$120,000 mark for first time
On the Bitstamp trading platform, the price rose at the start of the week to US$121,488, after nearly hitting the US$120,000 mark over the weekend. 14 Jul 2025 04:37pm A monument alluding to bitcoin is pictured at Plaza Bitcoin in San Salvador on Sept 4, 2024. - (Photo by MARVIN RECINOS / AFP) NEW YORK - Bitcoin surpassed the US$120,000 mark early on Monday for the first time since it came onto the market some 15 years ago, reported German Press Agency (dpa). On the Bitstamp trading platform, the price rose at the start of the week to US$121,488, after nearly hitting the US$120,000 mark over the weekend. Analysts attribute the oldest and best-known cryptocurrency's steady increase in value to the new political landscape in the United States (US) following Donald Trump's return to the White House in January. - 123RF photo Analysts attribute the oldest and best-known cryptocurrency's steady increase in value to the new political landscape in the United States (US) following Donald Trump's return to the White House in January. Trump had been very negative about Bitcoin during his first term in office, from 2017 to 2021, but actively courted the crypto community in this year's re-election campaign. Since the US election in November, the value of Bitcoin has risen by around 75 per cent. - BERNAMA-dpa More Like This
New Straits Times
an hour ago
- New Straits Times
Spaniards struggle to enjoy their own beaches in tourist deluge
INTERNATIONAL holidaymakers are keeping Spaniards off their own sun-kissed beaches due to ever-rising hotel and rental prices during an unprecedented tourism boom. Spain's top 25 Mediterranean and Atlantic coast destinations saw local tourism drop by 800,000 people last year whereas foreign visitors rose 1.94 million, according to previously unreported official data reviewed by analysis firm inAtlas. The trend looks sure to continue as the world's second-most visited country - after France - anticipates a record 100 million foreign visitors this year. "Prices have risen outrageously. The whole Spanish coast is very expensive," said Wendy Davila, 26. She cancelled an "exorbitant" trip with her boyfriend in Cadiz on the south coast for a cheaper visit to the inland city of Burgos, famed for its Gothic cathedral and the tomb of 11th century commander El Cid. "Now you don't go on holiday wherever you want, but wherever you can," added Davila, who is nostalgic for childhood beach holidays in Alicante on the Mediterranean. With a population of 48 million - half the number of foreign visitors each year - Spain relies heavily on tourism, which contributes more than 13 per cent of GDP. But protests are growing over housing shortages exacerbated by mass tourism - and could be exacerbated by the indignity for Spaniards being priced out of their favourite holidays. Hotel prices have risen 23 per cent in the past three years to an average of 136 euros (US$159) a night, according to data company Mabrian. Beachfront rentals have also climbed 20.3 per cent since mid-2023, according to price monitoring firm Tecnitasa, with most of them booked out for the summer by the first quarter. "It is becoming increasingly difficult for Spanish holidaymakers to afford beachfront tourism rentals," said Tecnitasa Group President Jose Maria Basanez. Foreign tourists stayed an average of eight nights at top Spanish beaches last year, with locals only affording half that time and spending a quarter of the money, inAtlas said. In fact, resort hotels are modifying down their forecasts for this summer, even despite the foreign boom, partly because places where residents tend to take their holidays expect slower sales. Spaniards also made near 400,000 fewer trips to the country's major cities in 2024 compared to the previous year, while foreign tourist visits there increased by almost three million. Aware of the brewing discontent and disparities, Spain's socialist government is encouraging international tourists to explore inland attractions to address overcrowding and diversify. "If we want to continue to be leaders in international tourism, we have to decentralise our destinations," Tourism Minister Jordi Hereu said at the launch of a first campaign to highlight Spain's lesser-known charms in June. "We want Europeans and those from other continents to rethink their idea of the Spain they love and visit so much." Spaniards have a strong tradition of escaping for family holidays in the hot summer months, but they are turning more to Airbnb rentals than hotels, and swapping Catalonia or the Balearic Islands for lesser-known destinations in Andalucia or Castille and Leon where prices are lower and mass tourism is yet to hit. Last year, 1.7 million more Spaniards holidayed in generally more affordable inland areas, according to inAtlas. In the mountain town of El Bosque for example, 100 km from the beaches of Cadiz on the Atlantic, the number of Spanish tourists increased by 22 per cent last year. "There may be a certain displacement effect," said Juan Pedro Aznar, professor and researcher at the Madrid-based Esade business school, noting Spaniards' lower purchasing power compared to British and German tourists. For some Spaniards, it is best to avoid the summer crowds altogether. Nurse Maria de la Jara will stay in Madrid this summer, only going south to visit family in Cadiz once the busy season is over. "I used to go to my family's house, but there are more and more foreign tourists in Cadiz and when a cruise ship arrives, the population doubles," said the 51-year-old. "It's overwhelming."
