EURASIA TRAVEL Co.,Ltd.

Business Details

Eurasia Travel Co., Ltd. was founded in 1986 as a travel agency specializing exclusively in overseas travel. The company plans and sells its own original tours emphasizing high-quality sightseeing content, covering more than 170 countries worldwide under the themes of nature, culture, art, and people. Its core target is the intellectually and spiritually mature demographic, and its strength lies in premium tour operations conducted by trained, dedicated tour conductors. Its subsidiary is responsible for dispatching tour conductors to tours hosted by the company. Because travel fees are received in advance, the company has maintained debt-free management and has no outstanding borrowings.

Recent Overview

Despite higher revenue, the first half fell into an operating loss due to costs related to the response to the Iran attack and higher procurement costs from a weaker yen

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), operating revenue increased 11.2% year on year to ¥2,502 million, achieving revenue growth. However, due to the impact of the attack on Iran by the United States and Israel on February 28, 2026, some tours were cancelled, and additional costs were incurred to ensure the safe return of customers who were traveling at the time. In addition, procurement costs rose due to the yen's depreciation trend since the beginning of the period, resulting in an operating loss of ¥21 million (compared with operating profit of ¥24 million in the same period of the prior year), an ordinary loss of ¥26 million, and an interim net loss of ¥27 million, representing higher revenue but lower profit year on year. Cash flow from operating activities remained positive at ¥102 million. The full-year earnings forecast remains unchanged, with operating revenue of ¥5,382 million (up 12.4% year on year) and operating profit of ¥93 million (up 18.5% year on year).

Key Products

Growth Drivers

• Increase in the number of participants and average tour price due to an enhanced lineup of products commemorating the company's 40th anniversary (Q1 of FY2026, ending September 2026: participants up 12%, average tour price up 5%)
• Continued post-pandemic recovery in overseas travel demand and acquisition of new customers through increased advertising expenditure
• Rise in share price and improved investor evaluation following the announcement of a new dividend policy targeting a DOE of 10% or more and a medium-term management plan (targeting ROE of 10% or more)
• Cultivation of new revenue sources, including inbound tourism, individual travel for affluent customers, and product development in collaboration with influencers
• Strengthening of the human resource base through base salary increases and active recruitment (the number of new hires in April 2026 exceeded that of the same period in the prior year)

Risks

• Growing macroeconomic uncertainty due to geopolitical risk, trade policies of various countries, and global inflation (as demonstrated by the attack on Iran in February 2026)
• Impact of exchange rate fluctuations on procurement costs (airfares, ground costs), with the yen's depreciation trend during the current interim period serving as a factor increasing procurement costs
• Risk of tour cancellations and sharp declines in travel demand due to overseas instability (terrorism, conflict, infectious diseases, etc.)
• Ongoing consolidation and mergers among travel agencies within the travel industry, and intensifying competition
• Seasonality that structurally tends to result in losses during the interim period (an operating loss of ¥21 million was recorded in the current interim period as well)
• Risk that increased selling, general and administrative expenses due to higher advertising expenditure, capital investment, and active recruitment will pressure profits (SG&A expenses in the current interim period were ¥409 million, up 8.2% year on year)