Risk of Delays in Advertising Acquisition and Return to Profitability as Locations and New Media Are Rolled Out
First written in FY2017. 13 of 25 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2026.
Chuco moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「However, if the Company cannot secure the planned level of advertising in newly launched free magazines and therefore takes a long time to recover its investment, revises a large-scale location expansion plan, or the performance of a group company brought into the scope of consolidation falls materially short of plan, this could adversely affect the medium- to long-term business development targeted by the Group.」
The risk of delays in securing advertising and achieving profitability for locations and new media has been supplemented by the risks of an increase in group companies through M&A and other means and consolidated subsidiaries falling short of their performance targets. - FY2026-H1MaterialisedAnnual report
「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 response to risks related to monetizing and achieving profitability for publications and regions, the suspension of some publications, including previously issued publications, and the reorganization of regions have taken place. - FY2025-H1MitigatedAnnual report
「Profit also increased, with gross profit rising 3.5% year on year at the non-consolidated Company level and, due to consolidation and other factors, gross profit increasing 20.3% to ¥2,430.712 million and operating profit increasing 4.7% to ¥97.352 million.」
Operating profit increased from ¥93.017 million in the same period of the previous year to ¥97.352 million due to hybrid advertising sales, higher gross profit and the consolidation of Kansai Pado, indicating that the risks related to monetization and profitability declined. - FY2024-Q2MitigatedAnnual report
「In terms of earnings, in addition to higher revenue, synergies from advancing the integration of the Group and greater efficiency in Group management through the integration of subsidiaries resulted in operating profit of ¥93,017 thousand, an increase of approximately ¥101 million from the operating loss of ¥8,410 thousand in the same period of the previous year.」
Regarding the risk of delays in monetizing and achieving profitability in the media advertising business, operating profit turned from a loss in the same period of the previous year to a profit of ¥93.017 million, indicating progress in improving profitability. - FY2024-Q1MitigatedAnnual report
「In terms of earnings, in addition to higher revenue, synergies from integrating the Group and reductions in indirect expenses resulting from the absorption-type merger at the beginning of the period resulted in operating profit of ¥20,076 thousand, compared with an operating loss of ¥23,753 thousand in the same period of the previous year.」
Operating profit turned from a loss of ¥23.753 million in the same period of the previous year to a profit of ¥20.076 million, further reducing the risks related to monetizing media and locations and to profitability. - FY2023MitigatedAnnual report
「Against this backdrop, revenue in the media advertising business was ¥8,125.944 million, up 23.9% year on year, and segment profit was ¥577.652 million, up 38.1%.」
Revenue and segment profit in the media advertising business increased, further reducing the profitability-related risk associated with delays in monetizing media and locations. - FY2023-Q3MitigatedAnnual report
「Revenue in the media advertising business for the cumulative third-quarter period generally increased, comprising ¥3,771.159 million from advertising on the Company's own media, up 18.1% year on year, and ¥2,018.677 million from sales promotion and other services, up 21.7%, for a total of ¥5,789.837 million, up 19.3%. Segment profit for the period was ¥334.998 million, up 35.7%.」
Revenue and segment profit in the media advertising business exceeded the levels in the same period of the previous year, with segment profit of ¥334.998 million. The profitability-related risk associated with delays in monetizing media and locations has declined. - FY2023-Q2MitigatedAnnual report
「Revenue in the media advertising business for the cumulative second-quarter period generally increased, comprising ¥2,379.205 million from advertising on the Company's own media, up 14.4% year on year, and ¥1,232.964 million from sales promotion and other services, up 18.0%, for a total of ¥3,612.169 million, up 15.6%. Segment profit for the period was ¥181.983 million, up 72.7%.」
Revenue in the media advertising business increased 15.6% year on year, and segment profit was ¥181.983 million, up from ¥105.365 million in the same period of the previous year. The profitability-related risk associated with delays in monetizing media and locations has declined further. - FY2023-Q1MitigatedAnnual report
「Revenue in the media advertising business for the cumulative first-quarter period comprised ¥1,096.044 million from advertising on the Company's own media, up 4.2% year on year, and ¥487.829 million from sales promotion and other services, down 3.0%, for a total of ¥1,583.873 million, up 1.9%. Segment profit for the period was ¥83.947 million, up 43.7%.」
Segment profit in the media advertising business was ¥83.947 million, up 43.7% year on year, due to higher advertising revenue from the Company's own media and an improved cost ratio. The profitability-related risk associated with delays in monetizing media and locations is declining. - FY2022MitigatedAnnual report
「Against this backdrop, revenue in the media advertising business was ¥6,559.903 million, up 8.9% year on year, and segment profit was ¥418.178 million, up 307.1% year on year.」
Segment profit in the media advertising business increased from ¥102.712 million in the same period of the previous year to ¥418.178 million, further reducing the profitability-related risk associated with delays in monetizing media and locations. - FY2022-Q3MitigatedAnnual report
「Against this backdrop, revenue in the media advertising business for the cumulative third-quarter period was ¥4,851.834 million, up 11.0% year on year, and segment profit for the period was ¥246.835 million, compared with segment profit of ¥2.377 million in the same period of the previous year, as the cost ratio declined mainly due to the recovery in orders for regional free magazines.」
In the media advertising business, segment profit increased from ¥2.377 million in the same period of the previous year to ¥246.835 million due to the recovery in orders for regional free magazines and the lower cost ratio, reducing the profitability-related risk associated with delays in monetization. - FY2022-Q2MitigatedAnnual report
「Against this backdrop, revenue in the media advertising business for the cumulative second-quarter period was ¥3,123.876 million, up 14.2% year on year, and segment profit for the period was ¥105.365 million, compared with a segment loss of ¥148.297 million in the same period of the previous year, as the cost ratio declined mainly due to the recovery in orders for regional free magazines.」
The media advertising business turned from a segment loss of ¥148.297 million in the same period of the previous year to a profit of ¥105.365 million, and the profitability-related risk associated with delays in monetization declined due to the recovery in revenue and the lower cost ratio. - FY2022-Q1MitigatedAnnual report
「Against this backdrop, revenue in the media advertising business for the cumulative first-quarter period was ¥1,554.569 million, up 21.8% year on year, and segment profit for the period was ¥58.414 million, compared with a segment loss of ¥111.704 million in the same period of the previous year, as the cost ratio declined mainly due to the recovery in orders for regional free magazines.」
The media advertising business recovered from a segment loss in the same period of the previous year to segment profit of ¥58.414 million due to the recovery in orders for regional free magazines. The profitability-related risk associated with delays in monetizing new media and locations declined at the segment level. - FY2021MitigatedAnnual report
「As second-half revenue increased 20.2% from the first half, segment profit recovered substantially, from a segment loss of ¥148.297 million in the first half to segment profit of ¥251.009 million in the second half, resulting in full-year segment profit of ¥102.712 million.」
The profitability of the media advertising business, in connection with delays in monetizing media and locations, recovered from a loss to a profit in the second half, resulting in full-year segment profit of ¥102.712 million. - FY2021-Q3MitigatedAnnual report
「As a result, segment profit recovered to ¥150.674 million in the third quarter, and segment profit for the cumulative nine-month period was ¥2.377 million.」
In connection with the risk of delays in monetizing new media and locations, the media advertising business secured segment profit of ¥150.674 million in the third quarter alone and ¥2.377 million on a cumulative basis. - FY2021-Q2MaterialisedAnnual report
「Although second-quarter revenue recovered, increasing 14.3% from the first quarter, segment loss was ¥148.297 million as the situation in which costs and expenses exceeded revenue continued during the second quarter.」
While revenue recovered in connection with the risk of delays in monetizing or achieving profitability for new media and locations, costs and expenses exceeded revenue in the media advertising business, and the segment continued to post a loss. - FY2020-Q3MaterialisedAnnual report
「During the third quarter, the Company suspended 1 company-owned regional free magazine and closed 1 location in Gunma Prefecture, and consolidated and relocated 2 locations in Aichi Prefecture.」
In response to the risk that new media and locations would fail to secure advertising or achieve profitability, the Company suspended 1 publication and closed 1 location in Gunma Prefecture, and consolidated and relocated 2 locations in Aichi Prefecture. - FY2020-Q2MaterialisedAnnual report
「In this environment, the company worked to restore earnings by expanding the lineup of new Happy Media(R) products and continuing to consolidate or discontinue sales locations based on profitability. In addition to closing 1 location in Fukui Prefecture in the first quarter, it suspended 1 company-operated regional free magazine in Wakayama Prefecture during the second quarter.」
In response to the risk that new media and locations would fail to secure advertising or achieve profitability, the Company suspended 1 company-owned magazine in Wakayama Prefecture, following the closure of a location in Fukui Prefecture. - FY2020-Q1MaterialisedAnnual report
「In this environment, to recover from the prolonged weakness in business performance since the previous fiscal year, the company continued the suspension of unprofitable magazines and consolidation or discontinuation of locations initiated in the previous fiscal year, and consolidated or discontinued 1 location in Fukui Prefecture during the first quarter.」
In response to the risk that unprofitable publications and locations would fail to secure advertising or achieve profitability, suspensions and location consolidations continued, including the consolidation and restructuring of 1 location in Fukui Prefecture. - FY2019MaterialisedAnnual report
「Accordingly, in the second half the company suspended regional free magazines for which no near-term increase in sales or earnings was expected, regardless of when they were launched, and consolidated or discontinued locations.」
The risk of delays in securing advertising and achieving profitability associated with new launches and location expansion materialized as the suspension of publications and consolidation and restructuring of locations where sales and earnings growth was not expected. Operating profit in the media business was also ¥549.104 million, down 25.0% year on year. - FY2019-Q3WorsenedAnnual report
「Segment profit was ¥390.725 million, down 21.5% year on year, as, in addition to the decline in gross profit, selling, general and administrative expenses, primarily cost of sales and personnel expenses associated with the expansion of sales locations through the previous fiscal year, raised the breakeven point as fixed costs.」
Fixed costs associated with the expansion of sales locations in prior years raised the breakeven point, resulting in a 21.5% year-on-year decline in segment profit in the media business. - FY2019-Q2MaterialisedAnnual report
「Segment profit was ¥253.211 million, down 16.7% year on year, as the increase in fixed costs associated with new launches and other initiatives through the end of the previous fiscal year substantially exceeded the increase in revenue.」
The increase in fixed costs associated with new launches and other initiatives exceeded the increase in revenue, resulting in a 16.7% year-on-year decline in segment profit in the media business. - FY2019-Q1MaterialisedAnnual report
「As profit margins temporarily deteriorated and performance fell short in the previous fiscal year due to the Company's aggressive launch of new regional free magazines, the Company is seeking to restore earnings in the current fiscal year by limiting the launch of new company-owned magazines, among other measures,」
The Company reported that profit margins deteriorated and performance fell short due to fixed costs and other expenses associated with aggressively launching new company-owned magazines, and has responded in the current fiscal year by limiting such launches. - FY2018RestatedAnnual report
「However, if the Company is unable to establish locations in its target regions, or if it cannot secure the planned level of advertising in newly launched free magazines and therefore takes a long time to achieve profitability, this could affect the Company's performance.」
The risk of an impact on performance from delays in expanding locations, securing advertising for new media and achieving profitability continues to be disclosed as a separate item. - FY2017First statedAnnual report
「However, if the Company is unable to establish locations in its target regions, or if it cannot secure the planned level of advertising in newly launched free magazines and therefore takes a long time to achieve profitability, this could affect the Company's performance.」
The impact on performance if the location expansion plan and advertising acquisition and profitability of newly launched publications do not proceed as planned has been explicitly disclosed as a separate risk for the first time.