Welcome!

Apache Authors: William Schmarzo, Christopher Harrold, Elizabeth White, Talend Inc., Adrian Bridgwater

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 increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...