Risk of reduced advertising budgets and orders due to COVID-19, and response through online sales
First written in FY2020. 3 of 9 entries say "Mitigated", first in FY2021. Latest entry: FY2024.
Netyear Group moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 2 of 8 companies on the "Worse" side.
2 other companies' latest entry also says "Softened".
- FY2024SoftenedAnnual report
「During the fiscal year under review, Japan’s economy showed signs of a gradual recovery as social and economic activity normalized following the reclassification of COVID-19 as a Class 5 infectious disease.」
The separate disclosure of the risk of reduced advertising budgets and orders due to COVID-19 was scaled back and treated as normalization of economic activity following the reclassification as a Class 5 infectious disease. The infectious disease risk itself remains included among risks such as disasters. - FY2023RestatedAnnual report
「Remote work and online project management have become established at our Company, and we have put in place a business operating structure that is less susceptible to the impact of various voluntary restrictions associated with the novel coronavirus disease.」
Reconfirmed the explanation that remote work and online project management have become established and that a structure less susceptible to the impact of voluntary restrictions related to infectious diseases has been put in place. - FY2022MitigatedAnnual report
「Remote work and online project management have become established at our Company, and we have largely put in place a business operating structure that is less susceptible to the impact of declarations of priority preventive measures and various voluntary restrictions. However, if strong restrictions are imposed on social and economic activity, sales activities and project management may be affected, which could affect our business results and financial position.」
Although the risks to orders, sales activities and project management from COVID-19 remain, the disclosure stated that remote work and online operations have become established and that a structure largely less susceptible to such impacts has been put in place. - FY2022-Q3RestatedAnnual report
「In the digital marketing-related fields we serve, some companies have stopped investing because of measures to limit the movement of people. At the same time, more companies are increasing investment in anticipation of the expansion of stay-at-home consumption and the “new normal,” including remote work, and accelerating efforts toward digital transformation (DX), which uses digital technologies to transform products, services and business models.」
While some companies have stopped investing because of restrictions on the movement of people, more companies have increased investment in anticipation of stay-at-home consumption, the new normal and DX, reconfirming the coexistence of COVID-19 impacts and responses to them. - FY2022-Q2MitigatedAnnual report
「During the cumulative second-quarter period, orders received remained firm, including the expansion of projects from major customers, and the higher personnel utilization rate contributed to profits.」
Amid the continuing risk of smaller advertising projects and lower orders due to COVID-19, the disclosure cited project expansion among major customers and firm orders, reconfirming that the impact on results was being contained. - FY2021MitigatedAnnual report
「In terms of sales activities, advertising-related business was negatively affected by the spread of COVID-19, but orders from the third quarter onward remained generally solid amid increased corporate digital investment.」
Although the impact of COVID-19 on the advertising field remained, orders received were firm from the third quarter onward as digital investment accelerated. - FY2021-Q2MaterialisedAnnual report
「In terms of business performance, projects, particularly advertising projects, were reduced or cancelled due to the spread of COVID-19. However, some customers increased their investment in digital fields, and the overall impact of COVID-19 on business performance was limited.」
The occurrence of reductions and cancellations of advertising projects due to COVID-19 was reconfirmed. At the same time, the disclosure stated that the overall impact on results was limited, partly because of increased investment in the digital field. - FY2021-Q1MaterialisedAnnual report
「In this business environment, our Group has placed the safety of employees and business partners first and has fully shifted to a flexible working arrangement based on telework, while focusing on online seminars using online video tools and non-face-to-face sales activities. Our subsidiaries have experienced declining sales due to the impact of customer companies restraining spending in the advertising and promotion fields. For the Group as a whole, however, the production, development and delivery of projects ordered in the previous fiscal year and ongoing projects have progressed smoothly, and consolidated results were at the same level as in the year-earlier period.」
Customer companies' spending restraint associated with COVID-19 actually resulted in lower subsidiary sales. The response through telework, online seminars and non-face-to-face sales activities, together with progress on previously ordered and ongoing projects, was also described. - FY2020First statedAnnual report
「In response to the spread of COVID-19, our Group has suspended in-person seminars and sales activities and is conducting sales activities using online seminars and web conferencing systems. However, as our customers are expected to reduce their advertising budgets due to the suspension of operations at stores and facilities and the postponement of cinema and television releases, we anticipate a temporary decline in project orders received by our Group, mainly in the first half of the fiscal year ending March 2021.」
The suspension of in-person sales activities due to the spread of COVID-19, reduced advertising budgets and the expected decline in orders, mainly in the first half of the fiscal year ending March 2021, were first disclosed as separate key risks. The response through online seminars and web conferencing systems was also described.