Japan Travel Trade Weekly News
Keeping you abreast of what's going on in the
Japanese travel and tourism industries.
News consolidated by Travel Vision, Inc. updated every week.
JTB Reports 26.9% Decline in Earnings despite Revenue Growth, Better
Results than Projected; Overseas Travel Up 6.8% in Sales
Early-June 2008
JTB Corp. released its consolidated financial report for the
fiscal year ended on March 31, 2008 in which it posted 18,659 million
yen in operating profit, down 25.4 percent from the previous year,
22,451 million yen in pretax profit, down 26.9 percent, and 11,124
million yen in net profit, up 214.7 percent, on revenue of 1,328,129
million yen, up 4.7 percent.
The number of corporations consolidated totaled 176, four more
than last year, including 94 in Japan and 62 outside the country plus
20 equity method affiliates, of which 46 companies are engaged in
travel business. Employees numbered 27,040 as of March 31, an
increase of 1,378 or 5.4 percent from a year ago.
Operating profit and pretax profit fell sharply as were foreseen,
because the investment on the core information system and other
capital spending had been factored in from the beginning. Personnel
cost increased 5.4 percent as a result of corporate buyout and
strategic recruitment, while selling and general administrative
expenses swelled 5.7 percent to 268,667 million yen.
These cost push apparently outpaced a growth of the gross profit
margin, i.e. 2.9 percent or 287,326 million yen, but the company
could reach beyond the initial targets of 12,500 million yen in
operating profit and 17,000 million yen in pretax profit. The
significant increase in net profit was booked as a reverse of having
taken the provision of 22,600 million yen as an extraordinary loss
against unused travel coupons a year earlier.
Travel-related revenue registered 1,183,605 million yen, up 4.5
percent of which 2.5 percent was a contribution from merged
companies. Sales of domestic travel were 605,366 million yen, up 1.1
percent, and those of overseas travel were 535,532 million yen, up
6.8 percent, while business of foreign visitors travel climbed 32.3
percent to 42,707 million yen.
Overseas package tour sales including the LOOK JTB series were
solid with a growth of 6.8 percent and the number of customers
totaling 3,935,982, up 0.1 percent. By destination, Asian countries
were in good shape with China growing 4.5 percent and Taiwan 9.3
percent; Europe also saw a growth of 1.9 percent defying the strong
euro.
From the performance point of view of the group companies
classified by function, community-based companies like JTB Tokyo
Metropolitan and JTB Western Japan secured a sale of 1,077,400
million yen (+0.7%), retail- oriented companies for individuals sold
349,900 million yen (+2.7%), and function-focused enterprises such as
JTB Business World Tokyo and i.JTB recorded a revenue of 288,300
million yen (+17.5%).
A jump in pretax profit was seen at the following two companies:
(revenue / revenue growth / pretax profit / profit growth)
JTB Global Marketing: 21,400 mil yen / +30.6% / 900 mil yen / +46.7%
JTB Business World Tokyo: 74,000 mil yen / +4.8% / 2,600 mil yen /
+31.7%
Individual performance of community-based companies is listed below:
(revenue / revenue growth / pretax profit / profit growth)
JTB Tokyo Metropolitan: 110,897 mil yen / -0.3% / 2,064 mil yen /
-12.6%
JTB Western Japan: 107,200 mil yen / -3.9% / 2,300 mil yen / -12.7%
JTB Chubu: 61,400 mil yen / +2.5% / 800 mil yen / +7.8%
JTB Kyushu: 39,700 mil yen / +2.6% / 500 mil yen / +18.9%
As for the current fiscal term ending on March 31, 2009, JTB
estimates 16 billion yen in operating profit, down 14.3 percent, 20
billion yen in pretax profit, down 10.9 percent, and 11.9 billion yen
in net profit, up 7 percent, on revenue of 1,384 billion yen, up 4.2
percent.
Installment of the new core information system will be completed
with the replacement at the overseas travel division in January 2009.
The company assumes high cost incurred by running the two systems of
the old and new simultaneously will be ended then and yet investment
for further development of software matching the new system is
inevitable.
It also considers probable to put money into the acquired
companies in order to reorganize them for new business opportunities.
The management, putting these matters into account, expects a decline
in pretax profit for one more year.
*The number of customers handled by JTB group during FY2007
Hawaii: 512,573 (-3.2%)
Guam + Saipan: 496,856 (-6.1%)
North America: 349,948 (-7.6%)
Asia total: 1,764,424 (+5.7%)
China: 455,892 (+4.5%)
Hong Kong: 132,465 (+1.7%)
Korea: 429,864 (-0.7%)
Taiwan: 210,628 (+9.3%)
Singapore: 79,779 (+3.1%)
Others: 455,796 (+14.1%)
Europe + Russia: 547,811 (+1.9%)
Oceania: 219,691 (+10.8%)
Grand total: 3,935,982 (+0.1%)
|
RSS
