Haneda’s Operator, Japan Airport Terminal Co., Releases H1 FY2019 Financial Results

At the end of last week, Japan Airport Terminal Co., the operator of Tokyo Haneda’s terminals released its financial results for the first half of fiscal year 2019.

Besides a minor decrease in total revenue, the company also recorded a considerably year-over-year drop in operating and ordinary profit.

Haneda's Operator, Japan Airport Terminal Co., Releases H1 FY2019 Financial Results
Japan Airport Terminal Co. is the operator of Haneda airport terminals.

Japan Airport Terminal Co. H1 FY2019 Financial Results

Between April 1, 2019, and September 30, 2019, the company recorded 135.27 billion yen (1 US dollar = about 108 yen), a 1.6% decrease compared to 137.42 billion yen in the first half of FY2018.

In the same period of time, Japan Airport Terminal Co. reported 11.15 billion yen in operating profit (-13.9% YOY), 10.72 billion yen in ordinary profit (-8.8% YOY), and 5.94 billion yen in net profit (-78.9% YOY).

Changes in organizational structure are responsible for the significant decrease in net profit. Increased expenses due to ongoing construction work as well as lower revenues from retail as well as food and beverage establishments are some of the main culprits.

Japan Airport Terminal Co. reports its performance in three segments: facility management and operations, retail, and food and beverage.

While the facility management and operations segment saw a 4.9% increase in revenues to 42.64 billion yen, that did not reflect in the segment’s profit which fell 11.7% YOY to 7.46 billion yen. That’s because the construction work mentioned earlier – including work on the terminals and parking garages – has resulted in an increase in expenses.

The retail segment saw a decrease across the board with the total revenues dropping 5% to 82.23 billion yen driven largely by the decrease in duty free sales to international passengers. The segment’s profit decreased 8.3% YOY from 8.10 billion yen to 7.43 billion yen.

Part of the decrease above was caused by the closure of some of the airport’s stores due to construction work.

The only segment which saw an improved performance compared to last year’s first half was the food and beverage segment. However, considering that it is by far the smallest of the three segments, its effect on the overall performance of Japan Airport Terminal Co. was minimal.

The segment’s revenue grew 1.8% to 10.38 billion yen while its profit grew 7.9% to 531 million yen.

Haneda Airport International Terminal
Haneda airport is currently going through an expansion project.

Japan Airport Terminal Co.’s Forecast for FY2019

Even though the company has recorded a year-over-year decrease in financial performance, it is still expecting profit figures to be higher at the end of the year than its original forecast.

As such, Japan Airport Terminal Co. revised its operating profit forecast from 16.0 billion yen to 16.7 billion yen (+4.4%), ordinary profit forecast from 14.2 billion yen to 15.1 billion yen (+6.3%), and net profit from 8.0 billion yen to 8.3 billion yen (+3.8%).

The operating and ordinary profit figures are still quite conservative – they are about 25% lower than the actual figures in FY2018.

In addition to revising the forecasted profits, the company also revised its expected revenue.

That number saw a minor downward adjustment from 277.5 billion yen to 275.7 billion yen (-0.6%) and it represents a slight increase from FY2018’s actual revenue of 273.61 billion yen.


While Japan Airport Terminal Co.’s financial performance in the first half of FY2019 is a considerably lower than it was in the first half of FY2018, it is still mostly within the company’s (conservative) forecasts.

On top of that, one of the main reasons behind the slowdown is Haneda airport’s ongoing construction work. Once that is completed as Tokyo gears up for the 2020 Olympics, the company’s performance should bounce back.

That is, unless other negative factors pop up.

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