TABIKOBO Co. Ltd.

Business Details

Ryokoubo Group Co., Ltd. primarily operates an Individual Travel Business that plans and sells overseas package tours, airline tickets, accommodations, and optional tours online for individual customers in Japan, alongside a Corporate Travel Business handling business travel and group tours for corporations, government agencies, and educational institutions, and an Inbound Travel Business targeting foreign visitors to Japan. The company is characterized by a "Hybrid Strategy" combining online customer acquisition with destination-specialized "Travel Concierge" staff. It has overseas bases in Vietnam and Indonesia as consolidated subsidiaries. The company operates as a single Travel Business segment.

Recent Overview

Net sales increased 33% but operating loss widened; quarterly net income turned positive due to booking of ¥390 million in extraordinary gains

Net sales for the cumulative 3rd quarter of FY2026 (ending June 2026) (July 2025 to March 2026) increased substantially to ¥4,044 million (up 33.4% year on year). Transaction volumes for both individual and corporate travel trended firmly, centered on Europe, North America, and Asia destinations. On the other hand, selling, general and administrative expenses expanded to ¥897 million (up ¥140 million year on year), and the operating loss widened to ¥41 million (compared with -¥21 million in the same period of the prior year). As a result of recording a total of ¥390 million in extraordinary gains, comprising a ¥290 million gain from the reversal of a liability related to the repayment of employment adjustment subsidies and ¥100 million in insurance income received, quarterly net income attributable to owners of parent turned positive at ¥286 million. The full-year earnings forecast was revised to net sales of ¥4,741 million and an operating loss of ¥171 million (net income remains undetermined due to the difficulty of estimating a potential administrative fine from the Financial Services Agency). The company's designation as a Securities on Alert (in effect since November 22, 2025) remains ongoing, and delisting risk remains depending on the outcome of an internal control system review to be conducted one year later.

Key Products

Growth Drivers

• Continued gradual recovery in overseas travel demand (capturing demand centered on Europe, North America, and Asia destinations)
• Expansion of product lineup and strengthened sales in the Individual Travel Business
• Firm demand for business travel and group bookings in the Corporate Travel Business, and strengthened order intake and arrangement capabilities
• Improved profitability through more efficient product creation processes and revised procurement terms
• Accelerating digitalization, including the use of AI
• Continued firm trend in inbound demand

Risks

• The company has recorded operating losses and ordinary losses for five consecutive fiscal years since FY2021 (ending March 2021), giving rise to material doubt about its ability to continue as a going concern (it has been determined that no material uncertainty exists)
• Designated as a Securities on Alert by the Tokyo Stock Exchange effective November 22, 2025 (due to improper receipt of employment adjustment subsidies and false disclosure); in principle, the company will be delisted if problems are found in its internal control systems in a review to be conducted one year later
• There is a possibility that the company will receive an administrative fine payment order from the Financial Services Agency related to a disclosure violation, and it is currently difficult to reasonably estimate the amount (a factor behind leaving the full-year net income forecast undetermined)
• Temporary expense burdens related to improper receipt of employment adjustment subsidies, including subsidy repayment losses, special investigation costs, listing contract penalty fees, and litigation-related expenses (total extraordinary losses of ¥55 million in the cumulative 3rd quarter)
• Slow recovery in the number of Japanese overseas travelers due to the continuation of yen depreciation and rising airfares and local prices
• Impact on overseas travel demand from effects on air routes due to heightened tensions in the Middle East and fluctuations in fuel prices, among other factors
• The full-year earnings forecast anticipates an operating loss of ¥171 million and an ordinary loss of ¥169 million, requiring earnings improvement in the second half