Travel agency H.I.S. Co. said Saturday it expects to report a record net loss of 53 billion yen ($465 million) for the year ending this month, its second straight year in the red, as the coronavirus wreaks havoc on the industry.
The Japanese firm’s latest result follows the 25 billion yen loss it made in the previous fiscal year. Revenue for the current year is expected to fall 70 percent to 125 billion yen, it said, adding it will not pay an annual dividend.
H.I.S. logo (Kyodo)
Nearly 80 percent of the company’s revenue comes from services linked to overseas travel.
H.I.S. in September sold its head office in Tokyo for 32.4 billion yen to improve its financial position. It also plans to raise 21.5 billion yen through third-party allotment and issuance of share warrants, it said.
Its rival JTB Corp. has also been undertaking restructuring efforts including the sale of offices.