Click here to close now.

Welcome!

Apache Authors: Yeshim Deniz, Alena Prokharchyk, AppDynamics Blog, Carmen Gonzalez, Pat Romanski

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 IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Telecommunications Corporation, a facilities-based international carrier licensed by t...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applications as well as responsive action controls. The various architectural building blocks of an IoT ...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Software Development, Product Management and Product Marketing, applied across Wireless, Unified Communic...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...