Deterioration in Financial Condition and Cash Flow Due to a Sharp Decline in Advertising Demand
First written in FY2020. 6 of 14 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2026.
Gendai Agency moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2025: 1 of 7 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Cash flows from operating activities amounted to ¥673 million, compared with ¥510 million in the previous fiscal year, mainly because profit before income taxes of ¥740 million was recorded.」
Cash flow from operating activities increased from ¥510 million in the same period of the previous year to ¥673 million. Although cash and cash equivalents declined due to shareholder returns and other factors, cash generation from operations improved. - FY2026-H1MitigatedAnnual report
「Cash flow from operating activities was ¥289 million, mainly due to the recognition of interim net income before income taxes of ¥400 million, compared with ¥195 million in the same interim period of the previous year.」
Cash flow from operating activities increased from ¥195 million in the same interim period of the previous year to ¥289 million. Meanwhile, cash and cash equivalents declined by ¥570 million due in part to the acquisition of treasury shares for ¥526 million, indicating that the decline in cash resulted from shareholder returns and other factors rather than deteriorating operating performance. - FY2025MitigatedAnnual report
「Cash flow from operating activities was ¥510 million, mainly due to the recognition of net income before income taxes of ¥416 million, compared with ¥260 million in the same period of the previous year. As a result, cash and cash equivalents increased by ¥255 million during the fiscal year to ¥3,687 million.」
Cash flow from operating activities increased from ¥260 million to ¥510 million, and cash and cash equivalents also increased from ¥3,431 million to ¥3,687 million. Regarding the funding-related challenges associated with lower advertising demand, cash generation during the year improved. - FY2025-H1MitigatedAnnual report
「Cash flow from operating activities was ¥195 million, mainly due to the recognition of interim net income before income taxes of ¥146 million, compared with ¥159 million in the same interim period of the previous year. As a result, cash and cash equivalents increased by ¥78 million during the interim consolidated accounting period to ¥3,510 million.」
Cash flow from operating activities increased from ¥159 million in the same interim period of the previous year to ¥195 million, and cash and cash equivalents also increased by ¥78 million during the interim period. Even amid sluggish advertising demand, the figures indicate that concerns about cash outflows during the interim period had eased compared with the same interim period of the previous year. - FY2024WorsenedAnnual report
「Management recognizes that the decline in advertising demand has reduced operating cash flow available for new investment and shareholder returns, presenting a challenge.」
Cash flow from operating activities declined from ¥372 million to ¥260 million, and the company explicitly identified the decline in operating cash flow resulting from lower advertising demand as a challenge. Meanwhile, it also stated that ¥3,431 million in cash and cash equivalents provided capacity for investment. - FY2022SoftenedAnnual report
「The balance of cash and cash equivalents at the end of the fiscal year was ¥3,978 million, and the company determined that it had secured a certain capacity for investment in future growth.」
While challenges remain for operating cash flow due to sluggish advertising demand, the company explains that it has secured ¥3,978 million in cash and cash equivalents and a certain capacity for investment. - FY2022-Q3SoftenedAnnual report
「Meanwhile, after the start of the second half, customer traffic at these facilities turned upward against the backdrop of declining infection numbers, and demand for customer-attraction advertising also showed a gradual recovery.」
Regarding the risk of deterioration in financial position and cash flow due to the sharp decline in advertising demand, the company states that customer traffic at facilities and demand for customer-attraction advertising have shown a gradual recovery since the second half. However, demand has not returned to pre-pandemic levels. - FY2021SoftenedAnnual report
「Meanwhile, as the Group held more than ¥3,800 million in cash and deposits as of the end of March 2021, it determined that there was no risk of a liquidity problem arising in the short term.」
While the risk of accumulated losses and cash outflows remains if sluggish advertising demand is prolonged, the company explains that more than ¥3,800 million in cash and deposits means there is no short-term liquidity problem. - FY2021-Q3SoftenedAnnual report
「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥5,419 million, down 37.9% year on year. The Company posted an operating loss of ¥250 million, compared with operating profit of ¥453 million in the same period of the previous year; an ordinary loss of ¥236 million, compared with ordinary profit of ¥427 million; and a quarterly net loss attributable to owners of the parent of ¥263 million, compared with quarterly net profit of ¥132 million.」
Although the decline in revenue and losses caused by the sharp decline in advertising demand continues, the year-on-year rate of decline in net sales and the loss amount have narrowed compared with the cumulative previous quarter. - FY2021-Q2SoftenedAnnual report
「Regarding advertising orders in the fiscal year ending March 2021, compared with orders under normal demand conditions: In the third quarter, advertising orders declined 20%. In the fourth quarter, advertising orders declined 15%.」
The company calculated its earnings forecast using assumptions of a 20% decline in advertising orders in the third quarter and a 15% decline in the fourth quarter. - FY2021-Q1MaterialisedAnnual report
「As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥1,046 million, down 63.9% year on year. The Company posted an operating loss of ¥346 million, compared with operating profit of ¥137 million in the same period of the previous year; an ordinary loss of ¥346 million, compared with ordinary profit of ¥111 million; and a quarterly net loss attributable to owners of the parent of ¥355 million, compared with quarterly net profit of ¥48 million.」
The company stated that consolidated net sales declined 63.9% year on year due to the sharp decline in advertising demand, resulting in operating loss, ordinary loss, and net loss attributable to owners of the parent for the quarter. - FY2020First statedAnnual report
「This decline in demand is expected to continue until the spread of the infection subsides, and it is currently difficult to forecast how long it will take for advertising demand to recover. Based on a simulation assuming that order value would continue to decline by more than 70% from normal order levels during the period until advertising demand begins to recover, monthly consolidated operating and net losses are estimated at a maximum of approximately ¥150 million, while monthly net cash outflow is also expected to be approximately ¥150 million.」
The company identifies as a new risk the deterioration in its financial position and cash flow if the decline in advertising demand caused by COVID-19 is prolonged, together with estimates of a more than 70% maximum decline in orders, a monthly maximum loss of approximately ¥150 million, and monthly net cash outflow of approximately ¥150 million.