Strengthening the Earnings Structure Through Fixed-Cost Reductions and Back-Office Streamlining

「Costs exceeded the previous fiscal year due to increases in labor costs, salaries and allowances, and recruitment expenses associated with the above-mentioned staff expansion, as well as higher depreciation and amortization resulting from increased software assets and higher cost of sales accompanying sales growth.」

「Costs exceeded the year-earlier level due to higher cost of sales accompanying sales growth, as well as increases in personnel and recruitment expenses resulting from the above-mentioned staff expansion and higher depreciation and amortization associated with increased fixed assets.」

「Costs fell below the previous fiscal year. Although depreciation and amortization increased from the reduced level in the previous fiscal year following impairment charges taken at the end of March 2023, and the allowance for doubtful accounts increased as the impact of the reversal recognized in the previous fiscal year unwound, costs related to promotional sales declined in line with the previously mentioned decrease in such sales, and company-wide cost controls were thoroughly implemented.」

「Costs declined slightly from the year-earlier period. Although the allowance for doubtful accounts increased as the impact of the reversal recognized in the previous fiscal year unwound, and depreciation and amortization increased from the reduced level in the previous fiscal year following impairment charges taken at the end of March 2023, cost of sales declined, mainly due to the previously mentioned decrease in promotional sales, and company-wide cost controls were thoroughly implemented.」

「Costs fell below the previous fiscal year, primarily because personnel expenses declined as a result of the lower headcount caused by natural attrition and stricter hiring, as well as the expanded secondment of employees to business partners and other companies to reduce fixed costs during the period required for sales to recover.」

「Costs fell below the year-earlier level because personnel expenses declined substantially as a result of the lower headcount caused by natural attrition and restrained hiring, as well as the expanded secondment of employees to business partners and other companies to reduce fixed costs during the period required for sales to recover. Outsourcing expenses declined due to a narrower focus on priority services and initiatives, while rent expenses fell as offices were consolidated and downsized. As a result, operating income was ¥22 million, compared with an operating loss of ¥2,046 million in the year-earlier period.」

「Costs fell below the year-earlier level because personnel expenses declined substantially as a result of the lower headcount caused by natural attrition and restrained hiring, as well as the expanded secondment of employees to business partners and other companies to reduce fixed costs during the period required for sales to recover. Outsourcing expenses declined due to a narrower focus on priority services and initiatives, while rent expenses fell as offices were consolidated and downsized.」

「On the cost side, personnel expenses declined substantially due to the lower headcount resulting from natural attrition and restrained hiring, as well as the progressive expansion from May 2022 of employee secondments to business partners and other companies to reduce fixed costs during the period required for sales to recover. Outsourcing expenses also declined due to a narrower focus on priority services and initiatives, resulting in costs below the year-earlier level.」

「Specifically, the Company discontinued the Rakuten Gurunavi Delivery and Rakuten Gurunavi Takeout services in July, the multi-payment service Gurunavi Pay in February, and the POS register service Gurunavi POS+ (Postas) in March. In December, it also dissolved its consolidated subsidiary 株式会社ぐるなびプロモーションコミュニティ. In addition, from May onward, the Company progressively seconded employees to business partners and other companies to reduce fixed costs during the period required for sales to recover.」

「On the cost side, personnel expenses declined due to lower headcount resulting from restrained hiring and natural attrition, as well as the secondment measures described above. Costs also fell below the year-earlier level due to lower outsourcing expenses and advertising and promotional expenses, reflecting a narrower focus on priority services and initiatives.」

「From May onward, we gradually began seconding employees to business alliance partners and other companies with the aim of reducing fixed costs during the period required for sales to recover.」

「Costs were below the year-earlier period due mainly to lower personnel expenses resulting from restrained hiring and a natural decline in the number of employees, as well as lower advertising, sales promotion and outsourced-service expenses resulting from a narrower focus on priority services and measures.」

「Costs were below the previous fiscal year as cost of sales declined due to lower depreciation following impairment of fixed assets at the end of the previous fiscal year and lower variable costs accompanying the decline in sales. Selling, general and administrative expenses were also substantially below the previous fiscal year due to the return and relocation of some offices, restraint on advertising expenditure in light of the external environment, and lower point-related costs accompanying the decline in online reservations.」

「Selling, general and administrative expenses decreased from ¥7,287 million in the year-earlier period to ¥5,824 million due to lower rent following the return and relocation of some offices, implemented gradually from the second half of the previous fiscal year, reduced recruitment costs associated with tighter hiring controls, more efficient use of advertising expenditure, the elimination of PC purchase costs incurred in the year-earlier period, and the reversal of the allowance for doubtful accounts.」

「Selling, general and administrative expenses decreased from ¥3,865 million in the year-earlier period to ¥3,157 million, reflecting the reversal of the allowance for doubtful accounts, the elimination of PC purchase costs incurred in the year-earlier period when the Company-wide shift to telework began amid the COVID-19 pandemic, and lower rent due to the partial return and relocation of the head office and sales offices implemented gradually from November 2020.」

「Of our 21 offices nationwide, we have been gradually reducing space at the Tokyo head office and Osaka sales office by returning part of the premises, integrating the Kobe sales office into the Osaka sales office, and relocating and downsizing other sales offices, excluding Nagoya and Fukuoka, since November 2020. At the same time, we are developing systems and an environment that enable employees to work regardless of location or time by moving internal procedures online, reviewing processes and establishing personnel systems such as flextime.」

「Costs decreased year on year due to the effects of company-wide operational efficiency improvements and cost-reduction measures undertaken since the previous fiscal year, restraint on advertising expenditure to promote use of online reservations, and lower variable costs accompanying the decline in sales.」

「Costs decreased due to lower variable costs accompanying the decline in sales, the corporate split of part of the related business, the effects of measures undertaken since the previous fiscal year to strengthen the earnings base through company-wide operational efficiency improvements and cost reductions, and restraint on advertising expenditure to promote use of online reservations.」

「Costs decreased due to progress in measures to strengthen the earnings base, including the corporate split of part of the related business, company-wide operational efficiency improvements and cost reductions, as well as the postponement of full-scale upfront investments to subsequent periods. As a result, operating profit was ¥1,821 million, up 49.8% year on year.」

「Costs decreased due to progress in measures to strengthen the earnings base, including the corporate split of the related “Let's Enjoy Tokyo” business, company-wide operational efficiency improvements and cost reductions, as well as the postponement of upfront investments to subsequent periods. As a result, operating profit was ¥1,397 million, up 24.3% year on year, and ordinary profit was ¥1,423 million, up 24.0%.」

「Within the Company, we will support the recovery of customer support while steadily generating profit by strengthening our earnings base. We will do so by transitioning to flexible internal systems that enable rapid business transformation, reducing fixed costs and streamlining back-office operations. Selling, general and administrative expenses decreased 8.1% year on year to ¥9,333 million, mainly due to reductions in personnel dispatch and outsourced services.」