H.I.S., a prominent Japanese travel company, has witnessed a significant decline in its shares as it posted a net loss for the nine-month period. The ongoing slump in international travel demand has contributed to these unfavorable financial results.
H.I.S. shares experienced a sharp decline in Thursday morning trading. The stock was recently down 6.4% to 1,851 yen, having previously fallen as much as 7.9%.
H.I.S. released a statement after the market closed on Wednesday, revealing a net loss of Y5.635 billion ($38.2 million) for the nine months ended July 31. This is in comparison to a Y33.26 billion net loss during the same period in the previous year.
However, there was a glimmer of hope in terms of revenue. The company reported a 64% increase in revenue, reaching Y163.98 billion. This growth was primarily driven by a rebound in domestic travel demand. Despite this resurgence, revenue still remains 71% lower than the pre-pandemic nine-month period that ended in July 2019.
Recovery in International Travel Demand
H.I.S. stated that international travel demand has started to recover gradually. Many countries have lifted pandemic-related restrictions, allowing for increased international flights by various airlines.
Notably, H.I.S. refrained from offering any earnings forecasts for the year ending in October. This decision was made due to the uncertain factors surrounding the travel industry.