Lower profitability when launching new businesses
First written in FY2016. 12 of 19 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Jtp moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 10 of 28 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Because the assets used in this business required more time than expected under the revised business plan to expand service provision and short-term recovery of the investment amount was no longer expected, their entire carrying amount was written down, and the reduction was recorded as an impairment loss under extraordinary losses.」
For Learning Booster, the company recorded an impairment loss of ¥48.660 million, following the ¥72.314 million recorded in the previous fiscal year. In the current fiscal year, the entire carrying amount was written down, and the recoverable amount was assessed at zero because future cash flows were projected to be negative. - FY2025MaterialisedAnnual report
「Because the assets used in this business required more time than initially expected to expand service provision and short-term recovery of the investment amount was no longer expected, their carrying amount was reduced to the recoverable amount, and the reduction was recorded as an impairment loss under extraordinary losses.」
Regarding the risk of declining profitability when launching new services, an impairment loss of ¥72.314 million was actually recorded for software related to Learning Booster. - FY2023RestatedAnnual report
「However, as a result, the company may incur operating losses for a certain period after launching a new service. In such cases, this could reduce the Group's ordinary profit margin and affect its operating results and financial position.」
The company continues to disclose the possibility of losses for a certain period due to the cost of acquiring technical expertise and making upfront investments when launching new services. - FY2022RestatedAnnual report
「Profit declined because, in addition to making upfront investments to create new solutions, fixed costs placed pressure on profit.」
The company has reconfirmed that upfront investments and fixed-cost burdens associated with launching new services may put pressure on profit and contribute to lower profit in the education solutions business. - FY2019MitigatedAnnual report
「Revenue from Other for the fiscal year was ¥434.809 million, up 234.6% year on year, and the segment posted a loss of ¥130.174 million, compared with a segment loss of ¥143.296 million in the previous fiscal year.」
Losses from new businesses continued, but the Other segment's loss narrowed from ¥143.296 million in the previous period to ¥130.174 million. - FY2019-Q3WorsenedAnnual report
「During the third-quarter cumulative period, revenue was ¥263.285 million, up 247.5% year on year, and the segment posted a loss of ¥112.505 million, compared with a segment loss of ¥104.743 million in the same period of the previous year. The company is working to develop this area into a promising new business segment, as aggressive investment in the field will help differentiate it from other companies.」
While continuing to make aggressive investments in new businesses, the Other segment's loss increased year on year from ¥104.743 million to ¥112.505 million, providing further numerical evidence of the risk of declining profitability. - FY2019-Q2MaterialisedAnnual report
「During the second-quarter cumulative period, revenue was ¥151.546 million, up 258.4% year on year, and the segment posted a loss of ¥74.562 million, compared with a segment loss of ¥75.884 million in the same period of the previous year. The company is working to develop this area into a promising new business segment, as aggressive investment in the field will help differentiate it from other companies.」
The Other segment incurred a loss of ¥74.562 million as the company continued to make aggressive investments in new businesses. The loss narrowed slightly from the same period of the previous year. - FY2019-Q1MaterialisedAnnual report
「As further strengthening of the service structure and staffing was necessary, the company actively invested in recruiting and training engineers during the period. As a result, net sales for the cumulative first quarter ended [period] amounted to ¥78.283 million, up 351.1%, and the segment loss was ¥32.083 million, compared with a segment loss of ¥41.049 million in the same period of the previous year.」
The Other segment incurred a loss of ¥32.083 million alongside investments in the service structure and staffing for the AI and RPA-related business. - FY2018MaterialisedAnnual report
「However, as a result, the Group may incur operating losses for a certain period after launching a new business. In such cases, this could reduce the Group's ordinary profit margin and affect its operating results and financial position.」
The company continues to identify the possibility of losses after launching new businesses as a risk, and the Other segment incurred a loss of ¥76.415 million. - FY2018-Q3MaterialisedAnnual report
「Net sales amounted to ¥75.774 million, down 58.9%, and the segment loss was ¥55.310 million, compared with a segment loss of ¥48.857 million in the same period of the previous year.」
As the company proceeded with investments in new businesses, the Other segment incurred an actual loss of ¥55.310 million, with the loss increasing from the same period of the previous year. - FY2018-Q2MaterialisedAnnual report
「As a result, net sales and profit declined year on year. However, as described above, this was due to the company's focus on expanding existing businesses and developing new businesses, and performance in the second quarter is progressing as planned.」
Net sales and profit declined in the first half as the company focused on expanding existing businesses and developing new businesses. The company explains that performance is progressing as planned. - FY2018-Q1MaterialisedAnnual report
「As a result, net sales and profit declined year on year. However, as described above, this was due to the company's focus on expanding existing businesses and developing new businesses, and performance in the first quarter is progressing as planned.」
Net sales and profit declined during the quarter while the company focused on expanding existing businesses and developing new businesses. The company explains that performance is progressing as planned. - FY2017MaterialisedAnnual report
「Although revenue increased as a result of winning the aforementioned public-sector bids in the robotics and AI fields, the company focused on developing new businesses in areas including cloud and big data solutions, robot AI solutions, healthcare strategy consulting, and digital solutions. As a result, revenue from Other for the fiscal year was ¥247.801 million, and the segment posted a loss of ¥78.492 million.」
A segment loss of ¥78.492 million was incurred in the Other segment as the company focused on developing new businesses. - FY2017-Q3MaterialisedAnnual report
「Specifically, the Group actively conducted market research and invested in human resources development for launching new businesses. As a result, net sales amounted to ¥3,455.117 million, down 0.3% year on year, while operating profit was ¥150.210 million, down 12.7%, and ordinary profit was ¥145.409 million, down 15.2%,」
While the company conducted market research and invested in human resources development for new businesses, operating and ordinary profit declined year on year. The text does not explicitly indicate a direct causal relationship between the investments and the decline in profit. - FY2017-Q2RestatedAnnual report
「The Group actively focused on developing new businesses. As a result, net sales for the cumulative second quarter ended [period] amounted to ¥2,312.021 million, up 1.9% year on year. In terms of earnings, operating profit was ¥96.514 million, down 21.1%, and ordinary profit was ¥92.733 million, down 23.9%,」
The company states that it focused on new business development and that operating and ordinary profit declined year on year, but the text does not explicitly indicate a direct causal relationship between the two. - FY2017-Q1MaterialisedAnnual report
「As a result, net sales for the cumulative first quarter ended [period] amounted to ¥1,149.933 million, up 2.8% year on year. However, due to the recording of the aforementioned new business development expenses and other costs, operating profit was ¥34.383 million, down 33.6%, and ordinary profit was ¥30.890 million, down 40.5%,」
Operating and ordinary profit actually declined year on year as a result of recording new business development expenses and other costs. - FY2016First statedAnnual report
「However, as a result, the Group may incur operating losses for a certain period after launching a new business. In such cases, this could reduce the Group's ordinary profit margin and affect its operating results and financial position.」
While treating the cost of acquiring new technologies as an investment, the company discloses the possibility of losses for a certain period after launch.