Delayed Profitability and Exit Risk in New Publication Areas
First written in FY2016. 5 of 10 entries say "Restated". Latest entry: FY2023.
Chiikishinbunsha moved to the "Worse" side of this theme in 2023.
2 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「In addition, if changes in the regional characteristics of the publication area (edition), such as population decline, occur and losses in that area (edition) on a standalone basis continue for longer than expected, or if the Company decides to withdraw from the newspaper and other publications business in response, this may adversely affect the Company's business, operating results or financial condition.」
The Company reconfirms the potential impact of prolonged standalone losses in a publication area and withdrawal when necessary. - FY2023-Q3MaterialisedAnnual report
「However, as difficult conditions continue, the Company suspended publication in the unprofitable Saitama area in May 2023 and is working to improve the performance of the Chiiki Shimbun publishing business by reviewing staffing allocations in profitable areas and taking other measures.」
The Saitama Prefecture area remained unprofitable, and the publication business was suspended in May 2023, meaning that the previously identified risk of deteriorating profitability and withdrawal materialized as an actual suspension. - FY2023-Q2MaterialisedAnnual report
「However, demand from small and medium-sized enterprises for sales promotion has been slow to recover due to the impact of COVID-19, and the Saitama Prefecture area in particular remained unprofitable. In addition, the Company is currently investing personnel in growth businesses such as its web business, and decided to suspend its newspaper publishing business in the Saitama Prefecture area as part of its efforts to select and concentrate its businesses.」
The filing states that the Saitama Prefecture area remained unprofitable, leading to the decision to suspend the newspaper publishing business, showing that the risk of deteriorating profitability and withdrawal from publication areas has materialized as an actual suspension. - FY2022RestatedAnnual report
「In addition, if changes in the regional characteristics of the publication area (edition), such as population decline, occur and losses in that area (edition) on a standalone basis continue for longer than expected, or if the Company decides to withdraw from the newspaper and other publications business in response, this may adversely affect the Company's business, operating results or financial condition.」
The Company reconfirms the risk of withdrawal and an impact on operating results if standalone losses in a publication area persist for an extended period. - FY2021RestatedAnnual report
「In addition, if losses in the publication area (edition) on a standalone basis continue for longer than expected, the Company may withdraw from the newspaper and other publications business in that area (edition).」
The Company reconfirms the risk of withdrawal and delayed recovery of investment if advertising orders fail to expand and losses persist in newly launched or developing areas. - FY2020MaterialisedAnnual report
「In addition, 10 of the 20 publication areas (editions) were suspended with the issue published on 28 August.」
Regarding the risk of deteriorating profitability and withdrawal from publication areas, the filing states that 10 of Shopper's 20 areas were actually suspended. - FY2018RestatedAnnual report
「However, if advertising orders fail to expand because, for example, residents move away from the publication area (edition) after the Group enters it for some reason, or the Group's customers no longer find its market attractive due to changes in the area's regional characteristics, losses in that area (edition) on a standalone basis may continue for longer than expected, potentially adversely affecting the Group's business, operating results or financial condition.」
The Group reiterates the risk that advertising orders will fail to expand in newly launched or developing areas, resulting in prolonged standalone losses. - FY2017RestatedAnnual report
「However, if advertising orders fail to expand because, for example, residents move away from the publication area (edition) after the Group enters it for some reason, or the Group's customers no longer find its market attractive due to changes in the area's regional characteristics, losses in that area (edition) on a standalone basis may continue for longer than expected, potentially adversely affecting the Group's business, operating results or financial condition.」
The Group continues to describe the risk of delayed profitability and withdrawal from newly launched areas. It also states that there had been no actual withdrawals from newly launched publication areas through the end of August 2017. - FY2017-Q3MaterialisedAnnual report
「In addition, the Company has suspended publication in areas where profitability has deteriorated in order to use management resources more efficiently.」
The filing states that publication was actually suspended in areas where profitability had deteriorated, showing that the risk of continuing operations in unprofitable areas or withdrawing from them has materialized as an operational event. It does not specify whether the suspended areas were newly launched areas. - FY2016First statedAnnual report
「Following the launch of a new publication area (edition) and the commencement of publication of “Chiiki Shimbun” and “Chiiki Shimbun Shopper” in that area (edition), it is difficult for the area (edition) to become profitable on a standalone basis until advertising revenue exceeds the associated costs.」
In newly launched areas, it is difficult to achieve standalone profitability until advertising revenue exceeds costs, and the Company indicates that prolonged losses could lead to withdrawal or delayed recovery of investment.