ANA Holdings Inc ANAHD Financial Results for 3Q of 2015 (4076N)

TIDMANA

RNS Number : 4076N

ANA Holdings Inc

29 January 2016

ANA HOLDINGS Financial Results for the Nine Months

ended December 31, 2015

TOKYO, January 29, 2016 - ANA HOLDINGS (hereafter "ANA HD") today reports its consolidated financial results for the nine months ended December 31, 2015.

ANA HD has delivered record operating revenues of Yen1,369.0 billion, an uplift in operating income, to Yen116.7 billion, and ordinary income, to Yen112.1 billion, during the period. Net income attributable to owners of ANA HD also rose to Yen73.3 billion, up 40%.

As a consequence of this strong performance, ANA HD is revising up its consolidated financial forecast for FY 2015. ANA HD now expects to achieve record operating income of Yen125.0 billion, ordinary income of Yen110.0 billion and net income attributable to owners of ANA HD of Yen65.0 billion for FY 2015, higher than previous forecast.

Overview

- ANA recorded increased sales revenue compared with the same period the prior year, principally due to the continued rise in international passenger services. This has been driven by network expansion, boosting the company's competitive position, ANA has captured demand for in-bound, out-bound and transits between North America and Asia. ANA has worked to reduce operating expenses whilst expanding the business, resulting in increased operating income, ordinary income and quarterly net income attributable to owners of ANA HD.

- ANA continues to expand and improve its international route network, launching services to four new cities during the period ; Houston, Kuala Lumpur, Brussels, and Sydney. Its dual-hub airport strategy, operating flights out of both Narita and Haneda airport in Tokyo, also continues to make good progress, as the company strengthens the position of each airport as international hubs.

- In order to continue building its global brand, ANA began the Star Wars project with the launch of two special livery planes decorated with Star Wars characters. These planes started operation on both international and domestic routes from October.

Consolidated Financial Performance Unit: billion yen (except for % comparison, rounded down)

 
                                              1-3Q/ FY2015    1-3Q/    Difference        %          3Q/     Difference 
                                                              FY2014                 Comparison    FY2015 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Operating revenues                                1,369.0   1,297.2        +71.7          +5.5     457.8        +15,3 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Operating expenses                                1,252.2   1,207.9        +44.3          +3.7     427.8        +16.7 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Operating income                                    116.7      89.2        +27.4         +30.8      29.9         -1.3 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Non-operating income/ losses                         -4.5     -14.7        +10.1        -           -0.7         +4.0 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Ordinary income                                     112.1      74.5        +37.6         +50.5      29.2         +2.7 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Extraordinary income/ losses                          5.5      11.6         -6.1         -52.2       5.5         +4.1 
-------------------------------------------  -------------  --------  -----------  ------------  --------  ----------- 
 Net income attributable to owners of ANA 
  HOLDINGS INC.                                       73.3      52.3        +20.9         +40.0      19.3         +2.7 
-------------------------------------------  =============  --------  -----------  ------------  --------  ----------- 
 

Performance by business segment Unit: billion yen (rounded down)

 
                       1-3Q/FY2015            1-3Q/FY2014             Difference             3Q/FY2015              Difference 
----------------  ---------------------  ---------------------  ---------------------  ---------------------  --------------------- 
                   Revenues   Operating   Revenues   Operating   Revenues   Operating   Revenues   Operating   Revenues   Operating 
                                income                 income                 income                 income                 income 
----------------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ---------- 
 Air 
  Transportation    1,184.2       118.6    1,124.2        78.2      +59.9       +40.3      396.1        37.4      +14.0       +11.0 
----------------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ---------- 
 Airline 
  Related             173.0        -3.8      170.5         9.4       +2.5       -13.3       58.5        -8.1       -2.9       -12.3 
----------------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ---------- 
 Travel 
  Services            129.3         4.2      130.6         4.4       -1.3        -0.2       40.8         1.4       -0.8        -0.2 
----------------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ---------- 
 Trade 
  and Retail          108.4         4.4       94.9         3.2      +13.4        +1.1       36.8         1.3       +3.1        -0.0 
----------------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ---------- 
 Others                24.5         1.1       23.5         1.3       +1.0        -0.1        8.3         0.5       +0.4        -0.0 
----------------  =========  ==========  ---------  ----------  ---------  ----------  ---------  ----------  ---------  ---------- 
 

Air Transportation

1. Domestic Passenger Services

- Although passenger numbers fell compared to the same period in the prior year due to increased competition from the Shinkansen bullet train's new Hokuriku route as well as typhoon-related flight cancellations, revenue increased over the same period of the prior year due to initiatives to raise profitability such as flexible pricing management in accordance with market demand.

- In response to this competition, ANA worked to achieve the optimum supply-demand balance by introducing smaller aircraft to improve passenger load factor.

   -     ANA increased the frequency of flights between Haneda and Kansai. 

- ANA continues to capture in-bound tourist demand through the launch of the "ANA Discover JAPAN Fare", a new fare available at overseas travel agents.

- ANA continues to strive for world-leading customer service and has introduced Japan's first-ever self-service baggage drop system, "ANA Baggage Drop Services", and introduced new automatic check-in machines with displays in five different languages. As of December 2015, these new services are available at 46 domestic airports including Haneda.

As a result of the above, domestic passenger revenues rose byYen5.6 billion (up 1.1% year-on-year).

(Except for % comparison and passenger load factor, rounded down)

 
  Domestic Passenger     3Q/FY2015   3Q/FY2014   Difference   % Comparison 
        Services 
----------------------  ----------  ----------  -----------  ------------- 
 Revenues (billion 
  yen)                       528.9       523.2         +5.6           +1.1 
----------------------  ----------  ----------  -----------  ------------- 
 Number of passengers                                            *    1.0 
  (thousand)                32,562      32,881         -318 
----------------------  ----------  ----------  -----------  ------------- 
 Available seat                                                  *    0.9 
  km (million)              45,207      45,638         -430 
----------------------  ----------  ----------  -----------  ------------- 
 Revenue passenger 
  km (million)              29,334      29,264          +70           +0.2 
----------------------  ----------  ----------  -----------  ------------- 
 Passenger load 
  factor (%)                  64.9        64.1         +0.8          - 
----------------------  ==========  ----------  -----------  ------------- 
 

2. International Passenger Services

- Overall, passenger numbers and revenue exceeded the same period of the prior year as business demand on flights to North America remains solid and ANA actively captured strong demand for travel to Japan from all regions. Demand on certain European routes showed some reduction following the terrorist attacks in Paris in November.

- In addition to opening new routes between Narita and Houston and Kuala Lumpur, a new route between Narita and Brussels opened in October with a further new route between Haneda and Sydney starting operations in December. Following a negotiated agreement between the governments of Japan and China, ANA began new route on Haneda-Guangzhou from October, and introduced more flights on Haneda-Beijing and Haneda-Shanghai routes.

- Introducing the new aircraft on Haneda-Los Angeles route in October, now all routes between Japan and the US mainland have been equipped with full-flat seats in business class, improving comfort as well as ANA's competitive position.

As a result of the above, international passenger revenues rose by Yen37.1 billion (up 10.5% year-on-year).

January 29, 2016 03:19 ET (08:19 GMT)

(Except for % comparison and passenger load factor, rounded down)

 
     International       3Q/FY2015   3Q/FY2014   Difference   % Comparison 
   Passenger Services 
----------------------  ----------  ----------  -----------  ------------- 
 Revenues (billion 
  yen)                       391.3       354.1        +37.1          +10.5 
----------------------  ----------  ----------  -----------  ------------- 
 Number of passengers 
  (thousand)                 6,054       5,361         +692          +12.9 
----------------------  ----------  ----------  -----------  ------------- 
 Available seat 
  km (million)              40,441      37,218       +3,222           +8.7 
----------------------  ----------  ----------  -----------  ------------- 
 Revenue passenger 
  km (million)              30,228      26,829       +3,398          +12.7 
----------------------  ----------  ----------  -----------  ------------- 
 Passenger load 
  factor (%)                  74.7        72.1         +2.7           - 
----------------------  ==========  ----------  -----------  ------------- 
 

3. Cargo

- Although ANA worked to strengthen its sales organization through the introduction of a new reservation system to improve space utilization, as a result of factors including low volumes of cargo transferred from international to domestic fights due to the yen depreciation, domestic cargo volume and revenue fell year-on-year.

- In international cargo business, ANA has made a number of service enhancements. Dedicated freighter flights were introduced on Narita-Xiamen-Okinawa and Narita-Qingdao-Okinawa routes from October onwards. The belly capacity of passenger aircraft was also utilized and the Okinawa cargo hub was used to capture demand on intra-Asia trilateral market as well as demand for express delivery. However, demand for cargo departing from overseas airports to Japan has not been increased due to the yen depreciation, resulting in a fall in cargo volume and revenue year-on-year.

As a result of the above, domestic cargo service revenues fell by Yen0.7 billion (down 3.1% year-on-year) and international cargo service revenues fell by Yen5.4 billion (down 5.8% year-on-year).

(Except for % comparison, figures are rounded down)

 
           Cargo Services              3Q/FY2015   3Q/FY2014   Difference        % 
                                                                             Comparison 
------------------------------------  ----------  ----------  -----------  ------------ 
                  Revenues (billion 
 Domestic          yen)                     24.4        25.1         -0.7          -3.1 
---------------  -------------------  ----------  ----------  -----------  ------------ 
  Freight carried 
   (thousand tons)                           360         369           -9          -2.5 
 -----------------------------------  ----------  ----------  -----------  ------------ 
  Ton km (million)                           363         369           -6          -1.8 
 -----------------------------------  ----------  ----------  -----------  ------------ 
                  Revenues (billion 
 International     yen)                     88.3        93.8         -5.4          -5.8 
---------------  -------------------  ----------  ----------  -----------  ------------ 
  Freight carried 
   (thousand tons)                           611         646          -34          -5.4 
 -----------------------------------  ----------  ----------  -----------  ------------ 
  Ton km (million)                         2,642       2,731          -89          -3.3 
 -----------------------------------  ==========  ----------  -----------  ------------ 
 

4. Other

- Other revenue from the Air Transportation business, which includes ANA's mileage program, Vanilla Air, in-flight sales and maintenance services for other airlines, was Yen143.3 billion (up 18.8% year-on-year).

- Vanilla Air increased the number of flights on the Narita-Taipei route from October onwards, and worked to capture demand for travel to Japan through stronger advertising campaigns for overseas markets as well as the launch of a Chinese language reservation center in Taiwan. During the third-quarter, Vanilla Air carried 1,297 thousand passengers (up 57.9% year-on-year), achieving a passenger load factor of 85.7% (up 8.8 points year-on-year).

Airline Related, Travel Services, Trade and Retail and Others

- In Airline Related businesses, operating revenue was Yen173.0 billion (up 1.5% year-on-year) due to increased contracts for ground operations from other airlines at Haneda and Osaka (Kansai) Airports. However an operating loss of Yen3.8 billion was recorded on the complete amortization during the period in goodwill recorded following the acquisition of the pilot training company Pan Am Holdings, Inc., now a consolidated subsidiary of ANA HD.

- In Domestic Travel Services, operating revenue was up year-on-year due to increased sales, principally for travel to Okinawa and Hokkaido. In Overseas Travel Services, operating revenue fell year-on-year due to decreased sales resulting from the yen depreciation and the impact of terrorist incidents in Europe. However, sales for travel to Japan exceeded the prior year due to the capture of strong inbound demand from Taiwan and China. As a result, operating revenue was Yen129.3 billion (down 1.0% year-on-year), while operating income was Yen4.2 billion (down 4.7% year-on-year).

- In Trade and Retail, operating revenue was Yen108.4 billion (up 14.2% year-on-year) and operating income was Yen4.4 billion (up 35.9% year-on-year) due to solid sales in the retail business, food business and the aviation and electronics business.

- In other, building maintenance contributed a solid performance, but business expenses increased resulting in operating revenue of Yen24.5 billion (up 4.3% year-on-year) and operating income of Yen1.1 billion (down 11.8% year-on-year).

Outlook for FY2015 (April 2015 - March 2016)

As a consequence of strong performance, ANA HD is revising up its consolidated financial forecast for FY 2015 from original forecast announced on April 30, 2015, as below.

   Consolidated Financial Forecast                                   unit: billion yen (rounded down) 
 
                         Revised      Original     Difference    FY2014     Difference 
                         Forecast      Forecast 
                        for FY2015    for FY2015 
--------------------  ------------  ------------  -----------  ----------  ----------- 
 Operating revenues       1,790.0       1,790.0         -         1,713.4      +76.5 
--------------------  ------------  ------------  -----------  ----------  ----------- 
  Operating income         125.0         115.0        +10.0        91.5        +33.4 
--------------------  ------------  ------------  -----------  ----------  ----------- 
   Ordinary income         110.0         90.0         +20.0        67.1        +42.8 
--------------------  ------------  ------------  -----------  ----------  ----------- 
     Net income 
     attributable 
     to owners of 
        ANA HD             65.0          52.0         +13.0        39.2        +25.7 
--------------------  ============  ------------  -----------  ----------  ----------- 
 

Contact : Corporate Communications, ANA HOLDINGS, [phone],[e-mail]

About ANA HOLDINGS INC.

ANA HOLDINGS is an aviation group with global operations and a total of 62 consolidated subsidiaries and 18 equity method affiliates. It is divided into passengers and cargo services segments as well as airline related business such as Catering and IT Services. ANA HD formed in April 2013 and is the parent company of ANA; full service carrier and Vanilla Air; LCC. ANA HD promotes a multi-brand strategy to leverage the strength of ANA brand and stimulate demand in markets not completely covered by its full-service airline offering, while expanding market share for the Group as a whole, leading to enhanced value. ANA has about 240 aircraft flying to 81 destinations and carrying about 47 million passengers. ANA is the largest airline in Japan by revenues and passenger numbers. ANA is a member of Star Alliance. Management vision of ANA HD is "It is our goal to be the world's leading airline group in customer satisfaction and value creation."

Please see the attached PDF for more details.

http://www.rns-pdf.londonstockexchange.com/rns/4076N_1-2016-1-29.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

END

QRTLIFSDLDIAFIR

(END) Dow Jones Newswires

January 29, 2016 03:19 ET (08:19 GMT)