Click here to close now.



Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

H.I.S. Reports Results for the Full Year Ended October 2012

Tokyo, Dec 14, 2012 - (JCN Newswire) - H.I.S. Co., Ltd. (TSE1: 9603), a leading travel and airline ticket agency, has announced results for the full year ended October 31, 2012. As the Group actively sought to increase share in the industry, consolidated net sales for the period rose 13.3% to 431,483 million yen, operating income rose 20.3% to 11,316 million yen, ordinary income rose 22.5% to 13,479 million yen, and net income also rose 12.4% to 9,331 million yen.

Within the travel industry, demand for overseas travel trended upward, supported by the continuing historically strong yen and growing travel opportunities for seniors. According to the Japan National Tourist Organization (JNTO), the (estimated) number of Japanese who departed the country from November 2011 through October 2012 is expected to have increased 10.9% year on year to a historically high of around 18,573,000 people, an increase of approximately 1,831,000 people.

Under these business conditions, the Group strove to improve the quality of its services and implemented various measures so that it could ensure strong demand in the travel business, the Group's main business segment.

- Travel Business

As for initiatives in the area of online travel sales, the Group completely renewed its online overseas airline ticket reservation site in November 2011 in order to strengthen ticket sales. In addition, several new services were introduced, such as a website that integrates reservations for overseas airline tickets and hotel booking in May 2012. Improvements were also made such as making the search and reservation pages more user friendly and simplifying procedures. In order to increase convenience, the Group also enhanced its smartphone application (e.g. H.I.S. overseas ticket reservations) and services provided through SNSs such as Facebook and LINE. Internet-based sales were firm.

As for sales channels, in East Japan, the Group restructured its network of branches with a focus on productivity and introduced mini-branches. In West Japan, the Group reinforced its sales system through various endeavors including opening a specialty branch in the headquarters in Umeda, Osaka. Moreover, efforts were made to further strengthen its sales system for overseas weddings by establishing overseas wedding/honeymoon counters at all of the Group's hundred branches throughout Japan and other measures.

Turning to group travel, the overall business was firm as sales of tours to see events at the London Olympics, which H.I.S. has become the official travel agent of for the first time, were extremely strong and orders for large-scale group trips (for corporate clients, various events, school trips, etc.) grew. As for corporate travel (corporate business trips), the Group has steadily increased the number of corporate clients through various endeavors including linking the corporate reservation system SFIDA-online to the overseas ticket search system, increasing convenience, and dispatching sales staff throughout the world to expand corporate contracts globally.

As for product development, the Group strengthened sales for charter flights (Jet Asia Airway flights to Bangkok, flights from areas throughout Japan to Hawaii, etc.), and these flights were used by many customers. Working to improve the "impresso" brand of guided tours, the Group developed extremely creative products, including one plan that involved renting out the Louvre Museum, and they were well received by customers. Efforts such as a commercial that Sei Hiraizumi, a popular Japanese actor, appeared in were used to strengthen marketing of its three-generation travel products to new groups of customers. The Group has worked to fully enter Japan's domestic travel industry, and within this business, the Group launched sales of not only tours that make use of low-cost carriers (LCC) that started flights this year but also products related to the business tie-up with All Nippon Airways at all the Group's branches. Furthermore, the domestic lodging reservation website Sumayado was launched in March 2012.

Turning to the business expansion overseas, the Group made further improvements to both its H.I.S VACATION business and the overseas out-bound business. The H.I.S. VACATION business involves Internet-based direct sales of products such as overseas hotel bookings and optional tours created or obtained by overseas offices to both Japanese and overseas travelers while the overseas out-bound business covers sales of locally-departing flights to non-Japanese customers, mainly in Asia. Furthermore, the Group launched an online reservation site for local overseas clients in Singapore, following the introduction of a similar site in Thailand. The Group will move forward with constructing sites that are closely tied to the local community throughout the world. In addition, the BtoB business, wholesale sales to other travel companies, steadily grew as staff conducted aggressive sale activities. As for branches, the Group continued to actively reinforce its network of branches, which included efforts such as expanding lounges in its branches in Nairobi, Kenya; Pusan, Korea (out-bound operations), and Guam.

As a result of the various measures discussed above and despite the effect of travel postponements and cancellations due to some diplomatic problems, the travel business was able to increase the number of passengers departing Japan that it handled during the current fiscal year. Therefore, the Group recorded an increase in both sales and income for the business, with sales rising 11.4% year on year to 407,304 million yen and operating income increasing 13.6% year on year to 11,384 million yen, which was for various reasons including sales activities that stressed productivity.

- Hotel Business

In the hotel business, the Group had two hotels in Australia and one in Sapporo, and added two new hotels during the fiscal year. The Watermark Hotel Nagasaki located in Nagasaki's HUIS TEN BOSCH and the Guam Reef Hotel located along the Tamon Bay on Guam were newly included in the scope of consolidation. The Group strove to improve customer satisfaction and profitability at all hotels, and sales rose 24.5% year on year to 2,784 million yen for the business, but the Group recorded an operating loss of 232 million yen for the business.

- Theme Park Business

HUIS TEN BOSCH Co. Ltd. which celebrated the twenty-year anniversary of its founding, worked to increase the quality of the theme park, improved its customer draw, and reduced expenses. The company enhanced well received events that were designed to attract customers. These events included Gardening World Cup, Kingdom of Light, and the Rose Festival. Furthermore, events that have remained extremely popular, such as the Hanabi (Fireworks) World Cup, contributed to stronger customer draw. As for new attractions, in addition to winning a bid for the White Ferris Wheel in November 2011, HUIS TEN BOSCH introduced Adventure Park in March 2012, the Thriller Fantasy Museum in May, and ONE PIECE Ride Cruise - FOR THE NEW WORLD - in Huis Ten Bosch in July 2012, increasing the value of visiting the park. The Huis Ten Bosch Art Museum hosted Visionary Art the Gogh Exhibition since July in commemoration of the twenty-year anniversary of the opening of the museum, and the exhibition has been warmly received. As a result, sales rose 19.3% year on year to 15,957 million yen and operating income increased 166.9% year on year to 2,639 million yen for the business.

- Transportation Business

On February 29, 2012, the Ocean Rose, which is operated by HTB CRUISE Co., Ltd., made its maiden cruise from Nagasaki to Shanghai. Although full operations were launched with higher quality cruises on July 25, the Group recorded 157 million yen in sales and an operating loss of 1,142 million yen for the business because of diplomatic problems.

- Kyushu Sanko Group

In order to strengthen domestic travel in Japan and promote travel to Japan, H.I.S. purchased additional shares of KYUSHU INDUSTRIAL TRANSPORTATION HOLDINGS CO., LTD., turning the company into a consolidated subsidiary. The Kyushu Sanko Group, the holding company of KYUSHU INDUSTRIAL TRANSPORTATION HOLDINGS CO., LTD., recorded 6,137 million yen in sales and recorded 275 million yen in operating income. The company has only been included in the scope of consolidation for three months, July-September 2012.

I. Consolidated Financial Results for the Full Year Ended October 31, 2012

Consolidated Operating Results (millions of yen)
------------------------------------------------------------------------
Full year ended October 31, 2012 % 2011 %
------------------------------------------------------------------------
Net Sales 431,483 13.3 380,805 9.4
Operating Income 11,316 20.3 9,407 49.8
Ordinary Income 13,479 22.5 11,005 119.2
Net Income 9,331 12.4 8,300 145.2

Net Income/Share (y) 287.77 255.96
Fully Diluted
Net Income/Share (y) -- --

Return on Equity (ROE) 14.3 14.0
Return on Assets (ROA) 8.6 8.5
Ordinary Income to
Operating Revenue Ratio 2.6 2.5
------------------------------------------------------------------------
Consolidated Financial Position
------------------------------------------------------------------------
As of October 31, 2012 2011
------------------------------------------------------------------------
Total Assets 173,497 139,018
Shareholders' Equity 76,763 65,589
Shlders' Eqty Ratio (%) 39.0 45.3
Shlders' Eqty/share (y) 2,088.35 1,942.32
------------------------------------------------------------------------
Consolidated Cash Flows
------------------------------------------------------------------------
Full year ended October 31, 2012 2011
------------------------------------------------------------------------
Cash Flow from Operating Activities 9,577 18,464
Cash Flow from Investing Activities (18,250) (18,147)
Cash Flow from Financing Activities (295) (1,843)
Cash and Cash Equivalents at Period End 35,821 44,703
------------------------------------------------------------------------

II. Forecast for the Fiscal Year Ending October 31, 2013
------------------------------------------------------------------------
Interim % Full year %
------------------------------------------------------------------------

Net Sales 230,000 14.3 490,000 13.6
Operating Income 6,500 29.0 15,000 32.5
Ordinary Income 7,500 16.5 17,000 26.1
Net Income 4,300 3.9 10,000 7.2
Net Income / Share (y) 132.61 308.39
------------------------------------------------------------------------

The global economic environment will likely remain uncertain due to some diplomatic problems, but within the travel industry, travel demand is expected to rise for various reasons including the spread of LCCs in Japan, new routes from overseas, and greater travel opportunities for seniors. On the other hand, we project that it will become more important to respond to market changes, such as diversification of points of contact with customers and fiercer competition within the industry both in Japan and overseas that includes airline companies that are promoting direct sale of products.

Under these business conditions, within the travel business, the Group's core segment, the Group will strive to improve its safety, security, service, and quality; focus on generating synergies within the group; deftly respond to customer needs, including making a foray into the cruise business and aggressively using charter flights; develop original products and services for the global market; and rapidly implement measures in order to expand and broaden the travel business for both flights departing from Japan and locally overseas. In addition, 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 conducting promotions to generate demand based on an awareness of the medium's characteristics.

HUIS TEN BOSCH Co., Ltd. will exert its originality and creativity to develop entertainment and events and move forward various new projects. The company will strive to realize further growth through various endeavors, including holding the From No.1 of the East to No.1 of the world - Kingdom of the Light with 10 million illumination bulbs (from November 23, 2012 - March 10, 2013); opening i-4, a dome theater with 360 degrees panoramic view on November 23, 2012; and introducing The Maze, a massive five-story maze that is on one of the largest in the world, in the spring of 2013 (expected to open March 1, 2013).

In addition, the Group announced the founding of an international charter airline company on December 4, 2012, and the company plans to make its first flight in the summer of 2013 and is in preparation for this flight.

III. Dividends
(yen)
------------------------------------------------------------------------
Year ended 2013 (Forecast) 2012 2011
------------------------------------------------------------------------
34.00 34.00 32.00
------------------------------------------------------------------------

The Company expects to pay a year-end dividend of 34 yen per share. As for the dividend for the next fiscal year, the Group plans to pay an annual common dividend of 34 yen per share to ensure sustainable and stable profit sharing. However, the Company will remain flexible in responding to the situation, if performance worsens in uncertain market conditions.

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 89 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.
Manabu Shimizu
Corporate Planning Division
Tel: +81-3-5908-2070
Fax: +81-3-5908-2423
Email: [email protected]


Copyright 2012 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
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
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, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
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 Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. 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. All major researchers estimate there will be tens of billions devices - comp...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 opportuni...
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...