Click here to close now.




















Welcome!

Apache Authors: Liz McMillan, Mohamed El-Refaey, Ajay Budhraja, Don MacVittie, AppDynamics Blog

News Feed Item

H.I.S. Achieves Record First Half Results

Tokyo, June 6, 2014 - (JCN Newswire) - H.I.S. Co., Ltd. (TSE1: 9603), a leading travel and airline ticket agency, has announced results for the first half ended April 30, 2014. The H.I.S. Group recorded net sales of 252,634 million yen, an increase of 12.5% from the previous fiscal year, operating income of 8,381 million yen, an increase of 38.4% from the previous fiscal year, ordinary income of 9,641 million yen, an increase of 22.9% from the previous fiscal year, and net income of 4,360 million yen, a decrease of 6.9% from a year earlier.

During the first half of the fiscal year under review, the Japanese economy saw gradual recovery overall, despite that recovery slowed in April when the consumption tax increased.

Foreign affairs issues and political unrest, mainly in Asia, as well as a weak yen trend still exert some influence on those traveling overseas, but the demand for overseas travel remains firm, due to two contributing factors: a recovery in consumer spending and an expansion of international flights at Haneda Airport in Tokyo starting on March 30, 2014. According to the Japan National Tourist Organization (JNTO), the estimated number of Japanese departing Japan in the first half of this fiscal year is forecast to have fallen by 2.8% compared with the previous year to approximately 8,320,000. Domestic travel remains steady with the background of improved convenience with LCC prevailing and its route expansion, as well as increasing demand for major tourist destinations including Okinawa and Hokkaido. Demand for foreign travelers visiting Japan remains strong, with an increasing number of foreign travelers from Southeast Asian countries with loosened visa requirements, including Thailand. Additionally, the number of travelers from China significantly improved. According to JNTO, the estimated number of foreign travelers visiting Japan in the first half of this fiscal year is expected to rise by 28.7% compared with the previous year to approximately 5,810,000.

Under these business conditions, the Group strived to improve on its standards of "safety, security, service and quality", and has implemented a range of original measures to expand its business in Japan and overseas.

- Travel Business
In overseas travel departing Japan, the Group has launched new services, including "travel concierge", which provides peace of mind and personal assistance in the field for independent travelers, and "restaurant reservation agent". The Group further expanded service locations and scope of target travelers, thus strengthening its line of independent travel products, the Group's foundation. The Group launched original products, including a special accommodation plan at "Doraemon room" in Hawaii equipped with special amenities, and a package deal incorporating chartered plans to enjoy popular destinations such as Vatican Museums & Sistine Chapel in Vatican City, in addition to La Sagrada Familia in Barcelona, Spain, which has been well received. Additionally, we have implemented special measures including "Pay-as-you-get-promoted campaign", which stimulates demand for overseas travel among students, and "one coin optional tour". Furthermore, the Group has worked to boost the range of demands by creating new courses associated with an expansion of international flights at Haneda Airport in Tokyo starting on March 30, 2014, and actively leveraging charter flights departing and arriving in each district.

As for sales channels, we enhanced the network of our branches with emphasis on production efficiency. We opened sales branches mainly in shopping centers nationwide, namely in Aeon Town Nagano Miwa (in Nagano prefecture), Aeon Mall Wakayama (in Wakayama prefecture) and Kuzuha Mall (in Osaka prefecture), as well as in developing metropolitan areas, including Sasazuka (in Tokyo) and Musashi Kosugi (in Kanagawa prefecture). We further deployed limited branches with mobility in accordance with demand during the peak period.

As for initiatives in the area of online sales, we have upgraded our "air ticket and hotel" website, allowing simultaneous reservation for optional tours and pick-up services on PCs as well as smartphones. We have also worked to expand our contact with customers and further improve convenience by strengthening product delivery by use of SNS including LINE. At our reservation website "Sumayado", we made efforts to increase the number of contracted facilities and users.

Our group travel activity is strong due to the increase in orders for large scale group travel, including corporate incentive travels, the range of events and school trips. Our implementation of the Sochi Olympic package tours has also been successful. Turning to corporate travel, or business travel, the demand is on a recovery trend, with our corporate clients signing comprehensive contracts, and sales remain firm.

Furthermore, we have been conscious about providing more fulfilling stay plans in terms of contents of the plans and hotel grades among others, and promoted value-added products. This contributed to an increase in our share in the volume of overseas travel by major travel agencies, compiled by the Tourism Authority.

In domestic travel business, which maintains a high growth rate, we have implemented a special program including night safari on Ishigaki Island, a remote island in Okinawa, and launched courses utilizing LCCs. Additionally, we have expanded our bus tours with new arrival and departure stops in Chiba and Saitama prefectures among others. Consequently, the domestic travel business continues to remain strong.

Turning to business overseas, we have promoted operations in multi branches in Southeast Asia in the overseas outbound business, and increased the number of branches to 14 in Bangkok, Thailand, and 10 in and around Jakarta, Indonesia. We will further strengthen our promotional activities for local customers and raise our brand recognition. To enhance our distribution network and to increase our ability to attract customers, we entered into a business alliance agreement, or an agency agreement, with a major Indonesian telecommunication company in the travel business. Also, we have aggressively deployed at new locations in developing countries, including Croatia and Greece. In total, we have an overseas network of sales in 56 countries, 117 cities and 169 branches as of April, 2014. We operate 41 online reservation websites for local customers abroad in 39 countries, and we have launched package tours services and "air ticket and hotel" websites. As a result of these measures, our outbound business continues to expand mainly in Asia. In parallel, we sought to enhance travel visiting Japan, and focused on accepting travelers from Thailand, with rapidly growing market, as well as corporate incentive travelers in each country, thereby strengthening ties with overseas locations and expanding our business.

In our inbound travel business, we have launched the original "Direct-from-the-farm products" which our local H.I.S. expatriate staff planed by visiting tourist destinations and hotels themselves. We have also improved a procedure at the time of local hotel check-in in Hawaii, by allowing for direct check-in/check-out from our local H.I.S. lounges. Additionally, we are acting as wholesalers to other travel businesses (BtoB business), so that we can offer our customers the services and activities of overseas branches, and increase our sales activity. Furthermore, our business between international locations has been attracting additional customers, ie. our Russian branch sells charter flights to Guam, departing from Vladivostok, to outgoing travelers, and our Guam branch receives incoming travelers.

As a result of these measures, net sales for the first half increased 11.7% year on year to 224,260 million yen, and operating income rose by 9.2% year on year to 3,977 million yen.

- Hotel Business
In the hotel business, the Group recorded net sales of 2,789 million yen, an increase of 31.5% compared with the previous fiscal year, and an operating income of 193 million yen, an increase of 656.5% from a year earlier, and achieved increases both in sales and profits. This owes to the Group's efforts to improve customer satisfaction and profitability by implementing measures to strengthen services and please its customers.

- Theme Park Business
HUIS TEN BOSCH Co. Ltd., which operates the theme park business, focused on events of only one or No. 1 value. Various scaled up events were held, including the popular "The Kingdom of Light Series", in which "Cube of Light" was created, and the "Tulip Festival", for which 650 varieties of tulips were planted, the most seen in Japan. Additionally, we have launched an experience-based "Masquerade Ball Carnival 2014" and new initiative of "MUSE HALL" which brings a full-blown entertainment experience. We have also established "Fuwafuwa Land" for children at Adventure Park. As the first measure taking place outside of the theme park, "Osaka Castle 3D Mapping Super Illumination" was held, and has been well received. As a result, visitors in the first half of the fiscal year increased 16.2% year on year to 1,501,000, and the Group recorded good business results. Net sales increased 34.9% to 14,014 million yen, and operating income increased 83.3% year on year to 5,121 million yen.

- Transportation Business
ASIA ATLANTIC AIRLINES CO., LTD., an international charter carrier, began operation on a route from Suvarnabhumi Airport, Bangkok to Narita International Airport in August, 2013, and continues operations on the same route, striving to improve safety and on-time performance. As a result, the Group recorded net sales of 1,934 million yen, and an operating loss of 552 million yen compared with an operating loss of 326 million yen a year earlier.

- Kyushu Sanko Group
In response to a new eco-friendly emission standard, KYUSHU INDUSTRIAL TRANSPORTATION Group, in its core bus business, implemented a new vehicle complete with safety equipment, including a collision mitigation brake system, and addressed a safe, secure and comfortable bus journey. As a result, net sales increased 3.4% to 12,829 million yen, and operating income decreased 13.6% year on year to 661 million yen due to the surge in fuel prices.

As a result of these measures, the Group recorded net sales of 252,634 million yen, an increase of 12.5% from the previous fiscal year, operating income of 8,381 million yen, an increase of 38.4% from the previous fiscal year, and ordinary income of 9,641 million yen, an increase of 22.9% from the previous fiscal year. The Group achieved record results in the fourth consecutive year for net sales and ordinary income, and record result in the third consecutive year for operating income. The Group recorded net income of 4,360 million yen, a decrease of 6.9% from the previous fiscal year, with an increase in tax expenses due to the near elimination of tax loss carryforwards for HUIS TEN BOSCH Co. Ltd.

Forecast for the Full Year

The global economic environment will likely remain uncertain, but in the travel industry, the Group expects the travel demand to remain firm from this summer onward, with the recovery in consumer spending and the activities of the senior generation, together with the increase in arrival and departure slots in the Tokyo region airports. On the other hand, there could be more intense competition from a more diverse range of competitors, both domestic and international, including airline companies, who seek for diversified customer contact and deal with direct sales, so it is important to keep a close eye on market trends.

Under these business conditions, the Group will strive to improve on its standards of "safety, security, service and quality" in its main segment, the travel industry. With the anticipation for the synergy effects, the Group promotes vertical integration business strategies, and actively leverages charter flights, including international charter airlines. The Group will thus respond sensitively to its customers' needs, create the original products and services in the global market, and expand and develop its inbound and outbound travel businesses. Furthermore, the Group will promote expansion with a greater awareness of productivity and efficiency and further increase earnings, and this will involve various activities including sales operations that take into consideration sales channels, and conduct promotions to generate demand based on an awareness of the medium's characteristics.

HUIS TEN BOSCH Co., Ltd. will scale up and hold popular events, including the "Hydrangea Festival" where 800 varieties of its kind are planted, the most seen in Japan. In summer, "Kingdom of Water" and "Summer Kingdom of Lights" will take place. Also, we will launch a new "Kingdom of Games", and strive to impress and satisfy our customers.

For the reasons above, our projections for the full fiscal year have not been changed from those announced on December 13, 2013.

Based on the resolution approved by the board on March 7, 2014, the Group executed a stock split from 1 common share to 2 common shares. This is reflected in the forecast for dividend per share and net income per share.
Consolidated Financial Results for the First Half Ended April 30, 2014

Operating Results                                  (millions of yen)
---------------------------------------------------------------------
Ended April 30,                      2014      %        2013       %
---------------------------------------------------------------------
Net Sales                         252,634   12.5     224,633    11.6
Operating Income                    8,381   38.4       6,056    20.2  
Ordinary Income                     9,641   22.9       7,847    21.9
Net Income                          4,360   (6.9)      4,681    13.1
Net Income/Share (y)                67.24              72.18        
--------------------------------------------------------------------- 

Consolidated Financial Position
---------------------------------------------------------------------
As of April 30,                      2014         10/31/2013
--------------------------------------------------------------------- 
Total Assets                      223,476            215,913
Net Assets                         96,345             90,680
Shlders' Eqty Ratio (%)              37.3               36.6  
Shlders' Eqty/share (y)          1,286.30           1,219.42
--------------------------------------------------------------------- 

Consolidated Cash Flows (CF)
--------------------------------------------------------------------- 
Ended April 30,                      2014               2013 
---------------------------------------------------------------------  
CF from Operating Activities        7,492              2,167 
CF from Investing Activities        1,766                 50 
CF from Financing Activities       (2,563)            (2,874)
Cash and Cash Equiv / Period End   68,618             37,750
--------------------------------------------------------------------- 

Dividends                                                      (yen)
---------------------------------------------------------------------
Year Ended                  2014 (Forecast)             2013
---------------------------------------------------------------------
                                    18.00              34.00
---------------------------------------------------------------------

Forecast for the Full Year                         (millions of yen)
---------------------------------------------------------------------
Year Ending October 31,              2014                  %
---------------------------------------------------------------------
Net Sales                         539,000               12.4    
Operating Income                   15,700               32.6 
Ordinary Income                    17,200               13.1
Net Income                          9,000                1.1
Net Income/Share (y)               138.78
---------------------------------------------------------------------


About H.I.S. Co., Ltd.

H.I.S. Co., Ltd. was founded in 1980 and pioneered the Japanese discount airline ticket industry. Today the H.I.S. Group is comprised of 95 subsidiaries and 9 affiliated companies around the world, and has become a leader in the Japanese travel industry. For more information, please visit http://www.his.co.jp/english/ .



Source: H.I.S. Co., Ltd.

Contact:
H.I.S. Co., Ltd.
Satoshi Umemoto
Corporate Planning Division
Tel: +81-3-5908-2070
Email: [email protected]


Copyright 2014 JCN Newswire. All rights reserved. www.japancorp.net

More Stories By JCN Newswire

Copyright 2008 JCN Newswire. All rights reserved. Republication or redistribution of JCN Newswire content is expressly prohibited without the prior written consent of JCN Newswire. JCN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.