Securing profitability through reductions in costs and operating expenses

「フリーメディア事業におけるエリア戦略やＣＳチームの強化と業務効率化、ハイブリッド広告の進展、自グループATS拡販などによる原価率の低下（54.8％⇒51.5％）により、売上総利益は1,481,374千円と、283,300千円の増加（前年同期比23.6％増）となりました。」

「For the Group’s company-operated magazines, whose publication areas and circulation continued to expand, the Company reviewed existing publications as well from a profitability perspective and worked to improve productivity through measures including discontinuing some magazines and reorganizing areas.」

「In terms of profit, in addition to higher sales, the realization of synergies from integrating the Group and reductions in indirect expenses resulting from the absorption-type merger at the beginning of the fiscal year」

「Specifically, in addition to reviewing printing costs, including the cost of printing paper ordered from printing companies, and insourcing distribution, the Company will reduce selling, general and administrative expenses such as site operating costs.」

「Gross profit increased 22.5% year on year to ¥2,739,212 thousand as a result of the lower cost ratio,」

「In terms of profit, gross profit increased ¥40,820 thousand, or 5.7%, year on year to ¥755,228 thousand, owing to an improved cost ratio resulting mainly from the increased proportion of media advertising revenue. However, higher selling, general and administrative expenses, primarily personnel costs related to sales initiatives, limited the improvement in the operating loss to approximately ¥11 million year on year, resulting in an operating loss of ¥23,753 thousand.」

「In the second half, the Company recorded operating profit of ¥142,930 thousand, exceeding the first-half operating loss of ¥60,974 thousand, as a result of a full-year recovery in sales, an improved gross profit margin through cost controls, and restraint of selling, general and administrative expenses,」

「In terms of profit, the Company recorded quarterly operating profit of ¥38,764 thousand in the third quarter, owing to higher sales, an improved gross profit margin resulting from cost controls, and lower selling, general and administrative expenses. However, this was insufficient to offset the weak first half, and the cumulative operating loss for the nine months ended the third quarter was ¥22,209 thousand, compared with an operating loss of ¥304,953 thousand in the same period of the previous year.」

「In terms of profit, initiatives to increase added value, including year-on-year sales growth in April and May and the promotion of digital transformation, progressed steadily. As a result, the gross profit margin for the six months ended the second quarter improved by 1.6 percentage points to 42.5% from 40.9% in the same period of the previous year. Profitability also improved year on year, with selling, general and administrative expenses declining 5.0% year on year as the Company advanced cost controls.」

「Specifically, in addition to reviewing printing costs, including the cost of printing paper ordered from printing companies, and insourcing distribution, the Company will reduce selling, general and administrative expenses such as site operating costs.」

「In terms of profit, continued efforts to reduce costs improved the quarterly cost ratio from 60.5% in the first quarter to 57.9% in the second quarter and 56.9% in the third quarter. As a result, cumulative cost of sales was ¥2,778,811 thousand and cumulative gross profit was ¥1,986,653 thousand.」

「In terms of profit, continued efforts to reduce costs resulted in cost of sales of ¥1,768,923 thousand, with the cost ratio improving from 60.5% in the first quarter to 57.9% in the second quarter.」

「Alongside initiatives tailored to the business environment, the Company worked to control costs such as printing and distribution expenses in line with its management strategy and theme, while also controlling expenses, including personnel costs,」

「The regional free magazines that are the Company's core products are exposed to rising printing-paper and distribution costs. In response, the Company is pursuing ongoing, thorough cost reductions, including a review of printing costs, including the cost of printing paper ordered from printing companies, insourcing distribution, and reducing selling, general and administrative expenses such as site operating costs.」