Demand Decline and Impact on Business Performance Due to COVID-19 and Other Factors
First written in FY2020. 10 of 18 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2026-H1.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2026-H1MitigatedAnnual report
「Against this economic backdrop, the environment surrounding our group remained generally solid, helped by increased opportunities for in-person communication as interest in returning from remote work to office-based work grew, as well as the recovery in domestic and international foot traffic.」
The company explained that the impact of demand-decline risks following the infectious disease had eased, supported by interest in returning to offices, increased opportunities for in-person communication, and the recovery in domestic and international foot traffic. - FY2025-Q1MitigatedAnnual report
「The business environment surrounding our group has steadily improved since COVID-19 was reclassified as a Class 5 disease, supported by increased foot traffic, more active corporate economic activity, recovery in inbound demand, and higher personal consumption.」
The company explained that foot traffic, corporate activity, and inbound demand, among other factors, recovered after COVID-19 was reclassified as a Class 5 disease, mitigating the impact of the infectious disease-related decline in demand on results. - FY2024ReframedAnnual report
「Decline in demand due to infectious disease outbreaks, natural disasters, economic downturns and other factors」
The previous demand risk centered on COVID-19 was redefined as the more general risk of demand shocks, involving cancellations and declines in new bookings due to infectious diseases, natural disasters, and economic downturns. Short-term cancellable contracts and new services using existing real estate were presented as countermeasures. - FY2024-Q2MitigatedAnnual report
「In our core rental conference room business, operations have remained strong as demand for in-person meetings, seminars, training, and other events recovered from the pandemic and companies placed greater emphasis on employee training. In addition, demand for social gatherings and parties involving food and beverages has also recovered notably since COVID-19 was reclassified as a Class 5 disease on 8 May,」
Demand for in-person meetings and training, as well as social gatherings and parties involving food and beverages, recovered as restrictions on activities related to the infectious disease were eased and the disease was reclassified as a Class 5 disease. - FY2024-Q1MitigatedAnnual report
「Meanwhile, restrictions on activities related to COVID-19 were eased, and particularly after 8 May, the disease was reclassified as a Class 5 disease under the Infectious Diseases Control Law. As a result, foot traffic generally entered a recovery trend and the business environment surrounding our group improved.」
The company explained that foot traffic entered a recovery trend as restrictions on activities were eased and the infectious disease was reclassified as a Class 5 disease, mitigating the impact of the infectious disease-related decline in demand on results. - FY2023MitigatedAnnual report
「Meanwhile, as the impact of COVID-19 eased and social and economic activity made substantial progress toward normalization, the business environment surrounding our group has been improving.」
Although the risk of a decline in demand due to the infectious disease remained, demand for rental conference rooms and lodging recovered as social and economic activity normalized, resulting in positive operating income and ordinary income for the full fiscal year. - FY2023-Q3MitigatedAnnual report
「As in-person events resumed more broadly with the recovery in foot traffic, we captured demand for meetings, seminars, and examinations in our rental conference room business, resulting in a significant year-on-year increase in net sales.」
In addition to the recovery in demand for in-person events, meetings, seminars, and examinations, demand for travel and business trips also recovered, mitigating the impact of the infectious disease-related decline in demand on results. The company recorded consolidated operating income of ¥2,770 million and ordinary income of ¥2,306 million. - FY2023-Q2MitigatedAnnual report
「In our rental conference room business, we captured demand for meetings, seminars, and examinations, which were on a solid recovery trend, and net sales increased significantly year on year.」
Although the decline in demand caused by the infectious disease continued, TKP's revenue and profit improved significantly from the same period of the previous year, supported by demand for meetings, seminars, examinations, travel, and business trips, as well as the lifting of restrictions on activities. - FY2023-Q1MitigatedAnnual report
「The reopening of the economy progressed following the large-scale economic stagnation at the initial spread of COVID-19. Together with the contribution from promoting product development and reducing fixed costs during the pandemic, this led to a significant improvement in ordinary income to ¥1,056 million in the first quarter.」
The reopening of social and economic activity, product development, and fixed-cost reductions mitigated the impact of the infectious disease-related decline in demand on results, improving ordinary income from a loss in the same period of the previous year to income of ¥1,056 million. - FY2022MitigatedAnnual report
「Thereafter, as vaccination rates rose and social and economic activity gradually returned to normal, demand for rental conference rooms gradually increased, and net sales began to recover from the second quarter onward.」
While the risk of a decline in demand due to the infectious disease continued, demand for rental conference rooms shifted to a recovery trend as vaccination rates rose and social and economic activity returned to normal. - FY2022-Q3A shift toward a recovery trend in demand, with uncertainty remaining.Annual report
「In addition to new business opportunities emerging during the pandemic, such as use of venues for university entrance examinations and other tests, webinars, and live-streamed shareholder meetings, orders have been gradually recovering since the state of emergency and priority preventive measures were lifted in October 2021.」
While orders gradually recovered due to new uses and the lifting of restrictions on activities, uncertainty remained regarding the impact of the spread of infections on demand and business performance. - FY2022-Q2MitigatedAnnual report
「In our rental conference room, food and beverage, and lodging businesses, social and economic activity was constrained and demand declined as declarations of a state of emergency and priority preventive measures continued to be issued nationwide in response to the spread of COVID-19.」
Although the decline in demand continued, revenue rose 6.9% year on year and EBITDA increased 212.9%, while the loss narrowed, supported by progress in measures including operating vaccination centers, converting rental conference rooms into rental offices, and reducing fixed costs. - FY2022-Q1The decline in demand will continue, but its impact is limited compared with the same period of the previous year.Annual report
「As declarations of a state of emergency and priority preventive measures continued to be issued nationwide in response to the spread of COVID-19, economic activity was constrained and demand for our rental conference room, food and beverage, and lodging businesses declined. Despite these conditions, we adjusted the scale of services to meet demand during the pandemic, including downsizing food and beverage services and strengthening the provision of rental conference rooms as offices, and maintained positive EBITDA.」
Although demand for rental conference rooms, food and beverage services, and lodging continued to decline due to declarations of a state of emergency and other measures, the impact compared with the same period of the previous year was limited, and EBITDA remained positive. - FY2021WorsenedAnnual report
「Although our group planned and implemented cost reductions, mainly in fixed costs, in anticipation of the impact of the spread of COVID-19 on results, we recorded a year-on-year decline in revenue and a loss, with net sales of ¥43,138 million, down 20.6% from the previous fiscal year; EBITDA of ¥3,073 million, down 69.7%; an operating loss of ¥2,497 million, compared with operating income of ¥6,317 million in the previous fiscal year; an ordinary loss of ¥2,321 million, compared with ordinary income of ¥4,752 million; and a net loss attributable to owners of the parent of ¥3,503 million, compared with net income attributable to owners of the parent of ¥1,739 million.」
The decline in demand caused by the infectious disease was reflected in full-year results, resulting in lower revenue and operating, ordinary, and net losses even after cost reductions were implemented. - FY2021-Q3Demand risks from the third wave and the reissuance of the state of emergency coexist with expectations for a recovery.Annual report
「The third wave began in the latter half of November 2020, and use for social gatherings and similar events has been trending downward, while other uses have continued to recover. The reissuance of the state of emergency in January 2021 is expected to result in a certain decline in conference room use, but the recovery trend is expected to continue, and we expect the situation to subside by the end of the second quarter of the fiscal year ending February 2022. Accordingly, we expect the performance of our group to recover further.」
While the risk of continued demand declines remained due to the third wave of infections and the reissuance of the state of emergency, the company also indicated that use excluding social gatherings and overall results were on a recovery trend. - FY2021-Q2WorsenedAnnual report
「Primarily due to TKP's rental conference room revenue being significantly below the previous year from March through July, consolidated results for the six-month period ended in the second quarter were net sales of ¥20,544 million, down 15.4% year on year; EBITDA of ¥729 million, down 85.0%; an operating loss of ¥2,013 million, compared with operating income of ¥3,504 million in the same period of the previous year; an ordinary loss of ¥2,119 million, compared with ordinary income of ¥2,167 million; and a net loss attributable to owners of the parent of ¥2,403 million, compared with net income attributable to owners of the parent of ¥723 million.」
The decline in demand caused by COVID-19 expanded in the first half, with TKP's rental conference room revenue down 44.7% year on year and consolidated results also showing a significant decline in revenue and a loss. - FY2021-Q1WorsenedAnnual report
「TKP itself recorded net sales of ¥5,693 million, down 45.3% year on year, as the movement to refrain from holding events accelerated following the declaration of a state of emergency, resulting in cancellations of reservations and a decline in new reservations for rental conference rooms and banquet halls.」
The decline in demand caused by COVID-19 continued and expanded in the first quarter, with net sales at TKP itself down 45.3% year on year. On a consolidated basis, the company posted an operating loss of ¥968 million, an ordinary loss of ¥1,291 million, and a net loss attributable to owners of the parent of ¥1,471 million. - FY2020MaterialisedAnnual report
「The impact of the spread of COVID-19 on consolidated results during the period began mainly in February, and we estimate that it had a negative impact of approximately ¥700 million on net sales.」
For the first time, the company identified cancellations and declines in new bookings due to infectious disease outbreaks, event cancellations and voluntary restraints, natural disasters, and economic downturns as particularly important business risks, and stated that the approximately ¥700 million decline in revenue caused by COVID-19 had actually occurred.