Profitability-Focused Operations Through the Rationalization of Unprofitable Contracts
First written in FY2018-Q3. 17 of 25 entries say "Advanced", first in FY2019-Q1. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1AdvancedAnnual report
「Because the Company was negotiating higher management fees and withdrawals for unprofitable properties with staffed front desks that were difficult to continue operating due to low profitability, revenue declined. However, profit increased as a result of agreements to raise fees, delays or deferrals of withdrawals, and a reduction in properties expected to be lost. As of the end of the six-month period of the current consolidated fiscal year, the total number of orders received was 663, down 9 from the end of the previous fiscal year, of which 199 were OICOS orders, up 20.」
The Company pursued negotiations to raise management fees and withdraw from unprofitable properties with staffed front desks. Revenue declined, while profit increased due to agreements reached in the negotiations and delayed withdrawals. The transition to OICOS also progressed. - 2026-07-10AdvancedEarnings
「For unprofitable staffed front-desk properties where continued operation is difficult due to low profitability, we are negotiating increases in management fees and withdrawal. Although revenue declined, profit increased as a result of higher revenue from successful fee-increase negotiations, fewer properties expected to be lost because withdrawals were postponed or their timing deferred, and other factors.」
The company continued negotiations to increase management fees and withdraw from unprofitable staffed front-desk properties, reporting the outcome as increased profit. - FY2026AdvancedAnnual report
「Revenue declined because, during the consolidated fiscal year, we proceeded with the withdrawal from unprofitable staffed front-desk properties where continued operation was difficult due to low profitability and negotiations to increase management fees were also difficult.」
The company withdrew from unprofitable staffed front-desk properties, which was reflected in lower revenue. It pursued operations focused on profitability together with proposals to switch to OICOS. - FY2025AdvancedAnnual report
「For unprofitable staffed front-desk properties where profitability is low and successful negotiations to increase management fees are unlikely, the company proposes switching to OICOS, which enables the provision of high-value-added services without on-site staff, and, where appropriate, conducts negotiations to terminate contracts and withdraw.」
The company specified an operating approach focused on profitability for unprofitable staffed front-desk properties, combining proposals to switch to OICOS with negotiations to terminate contracts and withdraw. - FY2025-H1AdvancedAnnual report
「Against a backdrop of deteriorating profitability at condominium management associations, rising labor costs and regional recruitment difficulties, the company continues to prioritize profitability in dealing with unprofitable staffed front-desk properties where profitability is low and successful negotiations to increase management fees are unlikely. It proposes switching to OICOS, which enables the provision of high-value-added services without on-site staff, and, where appropriate, conducts negotiations to terminate contracts and withdraw.」
For unprofitable staffed front-desk properties, the company explicitly stated that it would combine proposals to switch to OICOS with negotiations to terminate contracts and withdraw, specifying its operating measures focused on profitability. - FY2023AdvancedAnnual report
「As of the end of the consolidated fiscal year, total contracted properties stood at 748, down 6 from the end of the previous fiscal year due in part to the downsizing of the car-sharing services business. As a result, for the consolidated fiscal year, revenue from the condominium front-desk services business was ¥4,281 million, compared with ¥4,534 million in the previous fiscal year, and segment profit was ¥427 million, compared with segment profit of ¥407 million in the previous fiscal year.」
While the number of contracted properties declined, segment profit from the condominium front-desk services business increased from ¥407 million in the previous year to ¥427 million. - FY2022AdvancedAnnual report
「Segment profit increased due to lower recruitment costs resulting from improved retention of front-desk staff and the withdrawal from unprofitable properties. As a result, for the consolidated fiscal year, revenue from the condominium front-desk services business was ¥4,534 million, down 7.4% year on year, and segment profit was ¥407 million, up 3.6% year on year.」
The withdrawal from unprofitable properties and lower recruitment costs resulting from improved staff retention resulted in segment profit of ¥407 million, up 3.6% year on year. - FY2022-Q2AdvancedAnnual report
「As of the end of the second quarter of the current consolidated fiscal year, total contracted properties stood at 756. As negotiations for the planned withdrawal from unprofitable properties, which had been pursued in recent years, are now largely complete, the company expects any future decline in the number of contracted properties to be limited.」
The company reported concrete progress, stating that negotiations for the planned withdrawal from unprofitable properties were largely complete, and expects any future decline in contracted properties to be limited. - FY2022-Q1AdvancedAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, total contracted properties stood at 772. This reflected the planned withdrawal from unprofitable properties, while new contracts for reception services at shared offices and other factors supported the total. …As a result, for the first quarter of the current consolidated fiscal year, revenue from the condominium front-desk services business was ¥1,175 million, up 5.0% year on year, and segment profit was ¥104 million, compared with a segment loss of ¥37 million in the same period of the previous year.」
While continuing the planned withdrawal from unprofitable properties, the company pursued new contracts for shared-office services, improving segment profit from the previous year's loss to profit of ¥104 million. - FY2021-Q3AdvancedAnnual report
「As of the end of the third quarter of the current consolidated fiscal year, total contracted properties stood at 815. Segment profit increased year on year due in part to the completion in the previous fiscal year of goodwill amortization related to the acquisition of the business. As a result, for the first 3 quarters of the current consolidated fiscal year, revenue from the condominium front-desk services business was ¥3,704 million, down 12.3% year on year, and segment profit was ¥259 million, up 93.1% year on year.」
Total contracted properties declined to 815 due in part to the rationalization of unprofitable properties, while the completion of goodwill amortization and other factors contributed to segment profit of ¥259 million, up 93.1% year on year. - FY2021-Q2Total contracted properties of 850 and segment profit of ¥167 millionAnnual report
「As of the end of the second quarter of the current consolidated fiscal year, total contracted properties stood at 850. During the first quarter of the current consolidated fiscal year, the company had deferred recognizing management-fee revenue for April and May, including the closure period, at some properties that had temporarily closed at the request of their management companies because it could not make a reasonable estimate before discussions with those companies began. As discussions progressed, the revenue was recognized in the second quarter, substantially improving segment profit from the first quarter. Segment profit also increased year on year due in part to the completion in the previous fiscal year of goodwill amortization related to the acquisition of the business.」
Although total contracted properties declined to 850 under operations focused on profitability, segment profit was ¥167 million, up 50.4% year on year, due to the timing of management-fee revenue recognition and the completion of goodwill amortization, among other factors. - FY2021-Q1Total contracted properties of 884 and a segment loss due to the infectious disease outbreakAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, total contracted properties stood at 884. …As a result, for the first quarter of the current consolidated fiscal year, revenue from the condominium front-desk services business was ¥1,119 million, down 22.8% year on year, and the company recorded a segment loss of ¥37 million, compared with segment profit of ¥64 million in the same period of the previous year.」
Under operations focused on profitability, total contracted properties stood at 884, and the company recorded a segment loss of ¥37 million due in part to temporary closures and reduced operating hours caused by the infectious disease outbreak. - FY2020Contracted properties and profit declined under operations focused on profitabilityAnnual report
「As of the end of the consolidated fiscal year, total contracted properties stood at 926, as the company continued terminating contracts for unprofitable properties in stages to establish an operating structure focused on profitability. As a result, for the consolidated fiscal year, revenue from the condominium front-desk services business was ¥5,587 million, down 3.3% year on year, and segment profit was ¥226 million, down 30.7% year on year.」
While continuing to terminate contracts for unprofitable properties, the company had 926 contracted properties, and segment profit declined 30.7% year on year. - FY2020-Q3Segment profit declined 41.7% year on year under operations focused on profitabilityAnnual report
「In addition to the decline in revenue accompanying the decrease in total contracted properties, segment profit declined substantially because the company gave priority to improving the treatment of part-time employees to secure highly capable personnel and recognized in the current period some system investment-related costs that had been scheduled to be recorded from the next fiscal year onward. As a result, for the first 3 quarters of the current consolidated fiscal year, revenue from the condominium front-desk services business was ¥4,225 million, down 3.5% year on year, and segment profit was ¥134 million, down 41.7% year on year.」
While continuing to terminate contracts for unprofitable properties, the company recorded a 41.7% year-on-year decline in segment profit due to the decrease in contracted properties, improved employee treatment and the accelerated recognition of system investment costs. - FY2020-Q2RestatedAnnual report
「As of the end of the second quarter of the current consolidated fiscal year, total contracted properties stood at 964, as the company continued terminating contracts for unprofitable properties in stages to establish an operating structure focused on profitability. In addition to the decline in revenue accompanying the decrease in total contracted properties, segment profit declined from the previous year, when it had grown substantially, because the company gave priority to improving the treatment of part-time employees to secure highly capable personnel and continued to record system investment-related costs aimed at improving operating efficiency.」
The company continued terminating contracts for unprofitable properties, bringing total contracted properties to 964. Although operations remained focused on profitability, segment profit declined year on year due to the decrease in contracted properties, improved employee treatment and system investment-related costs. - FY2020-Q1RestatedAnnual report
「At the end of the first quarter, total contracts stood at 982 as the company progressively canceled unprofitable properties to establish an operating structure focused on profitability.」
The company continued terminating contracts for unprofitable properties under its policy of prioritizing profitability. However, segment profit in the condominium front-desk services business declined 21.3% year on year due to delays in securing personnel and system investment-related costs. - FY2019AdvancedAnnual report
「As a result, for the consolidated fiscal year, revenue from the condominium front-desk services business was ¥5,775 million, down 0.5% year on year, while segment profit was ¥326 million, up 60.3% year on year, due to the expansion of non-condominium front-desk services and progress in terminating contracts for unprofitable properties.」
The company expanded non-condominium front-desk services and proceeded with contract terminations for unprofitable properties. Segment profit was ¥326 million, up 60.3% year on year. - FY2019-Q3AdvancedAnnual report
「As a result of improving the profitability of the staffing services business and progressing with contract terminations for unprofitable properties, segment profit was ¥231 million, up 75.3% year on year.」
The company improved the profitability of its staffing services business and proceeded with contract terminations for unprofitable properties. Segment profit was ¥231 million, up 75.3% year on year. - FY2019-Q2AdvancedAnnual report
「As a result of improving the profitability of the staffing services business and progressing with contract terminations for unprofitable properties, segment profit was ¥168 million, up 83.7% year on year.」
The company improved the profitability of its staffing services business and proceeded with contract terminations for unprofitable properties. Segment profit was ¥168 million, up 83.7% year on year. - FY2019-Q1AdvancedAnnual report
「As a result of terminating contracts for unprofitable properties and reducing costs through greater operating efficiency, segment profit was ¥81 million, up 99.2% year on year.」
The company proceeded with contract terminations for unprofitable properties and improved earnings and reduced costs through greater operating efficiency. Segment profit was ¥81 million, up 99.2% year on year. - FY2018-Q3First statedAnnual report
「The company is gradually rationalizing unprofitable properties to establish an operating structure focused on profitability.」
The company first explicitly stated an operating policy of prioritizing profitability and rationalizing unprofitable properties rather than focusing solely on increasing the number of contracted properties.