Risk of Recouping Upfront Investment in New Services and Businesses
First written in FY2019. 1 of 3 entries say "Restated". Latest entry: FY2026.
DeNA moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2019: 6 of 25 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Our group is also focusing on creating new businesses that use AI technology and is making active investments, including establishing DeNA AI Link Co., Ltd. in 2025 to develop applications for general users and provide consulting and solutions relating to the use of AI. These new businesses rely on services such as external LLMs (large language models). If these external services malfunction, are suspended, undergo specification changes or are discontinued, the quality of the new businesses, including response accuracy, response speed and output tendencies, may change, or the development or provision of the new businesses may become impossible or difficult.」
The risks associated with investment in new businesses now include the AI businesses, DeNA AI Link and the risks of malfunctions, suspension, specification changes and discontinuation arising from reliance on external LLMs. - FY2023RestatedAnnual report
「In addition, when new services or businesses are launched, they involve their own risk factors. If their rollout does not proceed as planned because circumstances differ from forecasts or for other reasons, the investment may not be recovered, which may affect our group’s financial results and other matters.」
The risks of additional expenditures for new businesses, failure to meet plans and failure to recover investments, as well as responses based on analysis at the planning and business-plan stages, remain. - FY2019First statedAnnual report
「This may result in additional expenditures, including system investment, advertising expenses and personnel costs required for development, and may lower profit margins. In addition, when new services or businesses are launched, they involve their own risk factors. If their rollout does not proceed as planned because circumstances differ from forecasts or for other reasons, the investment may not be recovered, which may affect our group’s business and financial performance.」
The company identifies lower profit margins due to additional expenditures for new businesses, failure to meet plans and failure to recover investments as separate risks.