HIS reduced operating revenue by 30.2% year on year to 401 billion JPY in the third quarter of FY2020 (November 1 2019 to July 31 2020) on a consolidated financial basis, hit by travel restrictions under the pandemic. The Japanese leading travel agent reported operating loss of 16.8 billion JPY (operating profit of 11.3 billion JPY a year ago), recurring loss of 16.6 billion JPY (recurring profit of 11.3 billion JPY a year ago) and net loss of 16.9 billion JPY.
The main travel business decreased operating revenue by 32.5% to 3346 billion JPY and fell into operating loss of 12 billion JPY from operating profit of 8.2 billion JPY a year ago. To survive the crisis, HIS has shifted its focus to the domestic travel market and has offered ‘online experience tours’ on live from overseas destinations.
Huis Ten Bosch, the theme park in Nagasaki, also reduced operating revenue by 47.1% to 10.6 billion JPY and posted operating loss of 2.1 billion JPY, dropping from operating profit of 3.7 billion JPY a year ago. Although the park has opened step by step after the state of emergency declaration was lifted, visitors were down 40.1% to 1.14 million in total.
The hotel business reduced operating revenue by 20.8% to 7.5 billion JPY and fell into operating loss of 2.2 billion JPY from operating profit of 57 million JPY a year ago.
On the other hand, the energy business increased operating revenue by 35.9% to 18.9 billion JPY, despite a 61.8% decrease in operating profit to 189 million JPY.
For the full year of FY2020 ending October 31 2020, HIS has revised downward its financial forecasts to operating revenue of 424 billion JPY (-47.6%), operating loss of 36.7 billion JPY (operating profit of 17.5 billion JPY in FY2019), recurring loss of 36 billion JPY (recurring profit of 17.1 billion JPY in FY2019) and net loss of 31.8 billion JPY (net income of 12.2 billion JPY in FY2019).