Pressure on Profit from Business Expansion Investment and Related Funding Costs
First written in FY2017-Q3. 8 of 17 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-08-14.
Wedge Holdings moved to the "Worse" side of this theme in 2023.
1 other company's latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Ordinary profit included profit from the Resort business, which had performed well during the previous interim consolidated accounting period. During the current interim consolidated accounting period, only the results of the Digital Finance business were included, and continuing litigation-related costs, together with the resulting equity-method investment loss of ¥317 million, caused ordinary profit to fall into the red.」
The company explains that, in addition to profit pressure from business-related costs, continuing costs related to litigation and other matters affected results, and a ¥317 million equity-method investment loss was recognized. - FY2024WorsenedAnnual report
「The recognition of a ¥152 million allowance for loan losses against the assets of GL Finance PLC., which had received notice of the revocation of its finance leasing license and liquidation, increased the equity-method investment loss and consequently widened the deficit.」
In addition to the previous litigation and business restructuring costs, a ¥152 million allowance for loan losses against the assets of GL Finance PLC. arising from the revocation of its license and liquidation increased the equity-method investment loss and widened the deficit, according to the company. - FY2023WorsenedAnnual report
「Operating profit declined from the same period of the previous year because the burden of litigation costs and other expenses increased.」
The company explains that, in addition to the previous business reform and upfront investment expenses, the increased burden of litigation costs and other expenses reduced operating profit. - FY2021WorsenedAnnual report
「Revenue from the Digital Finance business declined substantially, while delayed repayments and a significant increase in loan losses resulted from the impact of the COVID-19 pandemic across Southeast Asia and the political upheaval in Myanmar. Although operating expenses were reduced, the substantial burden of litigation costs and other factors led to a significant decline in profit.」
In addition to the previous investment and funding costs, increased loan losses from delayed repayments, the COVID-19 pandemic, political upheaval and litigation costs put substantial pressure on profit. - FY2021-Q3MitigatedAnnual report
「Operating profit and ordinary profit increased as the content business significantly grew revenue and, following business reforms in recent years, operating expenses were reduced in both the Digital Finance and content businesses, more than offsetting the decline in revenue from the Digital Finance business.」
The company explains that cost reductions in the Digital Finance and content businesses through business reforms progressed, increasing operating profit despite the decline in revenue from the Digital Finance business. - FY2021-Q2MitigatedAnnual report
「Operating profit and ordinary profit increased as the content business significantly grew revenue and, following business reforms in recent years, operating expenses were reduced in both the Digital Finance and content businesses.」
The company explains that progress in reducing costs in both businesses through business reforms contributed to improved profit by addressing the factors that had pressured profit from business reform and expansion costs. - FY2020-Q1MitigatedAnnual report
「Profit increased as the company advanced business restructuring to improve the quality of its loan portfolio, with nonperforming loans and the effects of cost reductions making significant contributions.」
The company explains that business restructuring, measures addressing nonperforming loans and the effects of cost reductions contributed to improved profitability, indicating that it addressed factors pressuring profit from business expansion and restructuring. - FY2019WorsenedAnnual report
「Operating profit declined despite the contribution from cost reductions, as the substantial recognition of approximately ¥443 million in litigation costs related to J Trust Co., Ltd., among other factors, acted as a drag. Ordinary profit declined because a one-off accounting adjustment at Commercial Credit and Finance PLC, an equity-method affiliate, was a contributing factor.」
In addition to the previous business restructuring and upfront investment expenses, approximately ¥443 million in litigation costs related to J Trust Co., Ltd. and a one-off accounting adjustment at the Sri Lankan affiliate were identified as factors behind the full-year decline in profit. - FY2019-Q3WorsenedAnnual report
「As a result, revenue declined, while accounting adjustments at Commercial Credit and Finance PLC in the Democratic Socialist Republic of Sri Lanka, an equity-method affiliate, and ongoing litigation costs acted as drags, resulting in lower profit.」
In addition to the investment and funding costs incurred previously, accounting adjustments at the Sri Lankan affiliate and ongoing litigation costs were identified as factors contributing to the decline in profit. - FY2019-Q1RestatedAnnual report
「The company has taken a more conservative approach to reviewing its nonperforming-loan criteria and is actively accelerating the accounting treatment of nonperforming loans, which has put pressure on profit for the current quarter. The company considers these necessary strategic actions for future growth and improved profitability.」
While business restructuring and the accelerated treatment of nonperforming loans are putting pressure on quarterly profit, the company continues to explain that these actions are necessary for future growth and improved profitability. - FY2018RestatedAnnual report
「In the Kingdom of Cambodia and the Republic of Indonesia, and also in the Kingdom of Thailand for the purpose of improving the quality of the overall loan portfolio, the company is actively accelerating the accounting treatment of nonperforming loans in connection with business model restructuring. This has put pressure on profit for the current consolidated fiscal year. The company considers these necessary strategic actions for future growth and improved profitability.」
While business restructuring, the accelerated treatment of nonperforming loans and investment expenses are pressuring current-period profit, the company continues to explain that these actions are necessary for future growth and improved profitability. - FY2018-Q2RestatedAnnual report
「During the current quarter, the company strategically incurred investment expenses to support future growth. In the Digital Finance business, it has also begun reviewing its cost structure to further expand the business and reform its earnings structure.」
The company continues to invest for future growth and is reviewing its cost structure to expand the Digital Finance business and reform its earnings structure. - FY2018-Q1RestatedAnnual report
「During the same period, the company actively incurred investment expenses to support future growth. In the Digital Finance business, it has also begun reviewing its cost structure to further expand the business and reform its earnings structure.」
While investment expenses for future growth continue to pressure profit, the company has begun reviewing its cost structure to further expand the business and reform its earnings structure. - FY2017RestatedAnnual report
「The company introduced new business models and products in the countries where it operates its Digital Finance business, and profit was pressured by the resulting increase in upfront investment expenses.」
The company continues to explain throughout the fiscal year that upfront investment expenses associated with introducing new business models and products are putting pressure on profit. - FY2017-Q3First statedAnnual report
「The expansion of the Digital Finance business in Thailand, Cambodia, Laos, Indonesia and Myanmar contributed to higher revenue and profit, but temporary special factors, including higher investment-related expenses for expansion and higher interest costs associated with funding that expansion, put pressure on ordinary profit and quarterly net profit.」
The company explains that while the expansion of Digital Finance increased revenue and profit, investment expenses and interest costs related to funding the expansion actually pressured ordinary profit and quarterly net profit.