Thursday, October 17, 2013
Keikyu Posts Record Net Profit For 1st Half
TOKYO (Nikkei)--Railway operator Keikyu Corp. (9006) announced Wednesday that net profit soared 82% to a record 7.5 billion yen for the six months ended Sept. 30 on the back of a recovery in leisure spending.
The result surpassed the firm's initial estimate by 2.5 billion yen.
Sales rose 11% to 160 billion yen, with operating profit jumping 46% to 15 billion yen, 3.6 billion yen above the forecast.
High-margin railway operations led the growth. Construction work to elevate train tracks at Kamata Station in Tokyo was completed in October 2012, enabling the company to tap leisure travel demand by increasing services. The line connecting to Haneda Airport helped increase business ridership.
With an increasing number of railway companies now accepting smart cards issued by other operators, customer convenience has improved. Many passengers arriving at Haneda headed to the Tokyo Skytree and other attractions, using a combination of Keikyu and other train services.
That advertising expenses will be booked in the second half, instead of the April-September period, also added to the growth. Higher occupancy improved the profitability of its hotel business.
On the other hand, retail operations languished. While department store results were roughly in line with estimates, competition with convenience stores and other rivals weighed down both sales and profit in the supermarket business.
(The Nikkei, Oct. 17 morning edition)