Failure of Acquired Businesses to Meet Earnings Expectations and Impairment Losses
First written in FY2016. 12 of 13 entries say "Materialised", first in FY2016. Latest entry: FY2026.
Digital Hearts Holdings moved to the "Worse" side of this theme in 2016, 8 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
44 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Because the Company was unable to achieve the projected performance, it recognized impairment losses on goodwill and operating assets.」
Impairment losses totaling ¥238.030 million were recognized for DIGITAL HEARTS CROSS and DIGITAL HEARTS Seoul because they failed to achieve their projected performance. - FY2024-Q3MaterialisedAnnual report
「The Group recognized impairment losses on the following asset groups.」
Impairment losses totaling ¥1,052.889 million were recognized, including ¥475.193 million of LOGIGEAR goodwill, ¥386.323 million of DEVELOPING WORLD SYSTEMS goodwill and ¥45.565 million of MK Partners goodwill. - FY2024-Q2MaterialisedAnnual report
「United States (LOGIGEAR CORPORATION) — goodwill 463,976; United Kingdom (DEVELOPING WORLD SYSTEMS LIMITED) — goodwill 381,955; United States (MK Partners, Inc.) — goodwill 44,490」
Impairment losses were recognized on goodwill and other assets related to LOGIGEAR, DEVELOPING WORLD SYSTEMS and MK Partners because the acquired businesses failed to meet their earnings projections. Total impairment losses were ¥1,030.261 million. - FY2023MaterialisedAnnual report
「The Group recorded an impairment loss on the goodwill arising from the acquisition of shares in DIGITAL HEARTS CROSS.」
An impairment loss of ¥1,045.536 million was recognized on DIGITAL HEARTS CROSS’s goodwill because its earnings plan, as projected at acquisition, was delayed. - FY2022MaterialisedAnnual report
「We recognized an impairment loss because the returns expected at the time of the acquisition could no longer be expected.」
Goodwill impairment losses of ¥9.333 million for Orgosoft and ¥2.823 million for Aetas, totaling ¥12.156 million, were recognized, providing an additional indication that the acquired businesses failed to meet their earnings projections. - FY2022-Q3MaterialisedAnnual report
「Goodwill ¥9.333 million Total ¥9.333 million」
An impairment loss of ¥9.333 million was recognized on Orgosoft’s goodwill because it failed to achieve the earnings projected at acquisition. - FY2021MaterialisedAnnual report
「With respect to goodwill, we recognized an impairment loss because the returns expected at the time of the acquisition of Orgosoft Co., Ltd. could no longer be expected.」
An impairment loss of ¥87.807 million was recognized on Orgosoft’s goodwill because it failed to achieve the earnings projected at acquisition. - FY2018-Q3MaterialisedAnnual report
「Loss on valuation of investment securities 97,312」
A loss on valuation of investment securities of ¥97.312 million was recognized as an extraordinary loss for the cumulative third quarter period. - FY2017WorsenedAnnual report
「The Company recognized an impairment loss on goodwill because it became unable to expect the earnings projected at the time of acquiring PG Universe Co., Ltd. (currently Flame Hearts Co., Ltd.) and Network 21 Co., Ltd.」
The Company recognized impairment losses of ¥495.353 million for the period, including ¥346.355 million in goodwill impairment related to PG Universe and Network 21 due to failure to meet the earnings projected at acquisition. - FY2016MaterialisedAnnual report
「The Company recognized an impairment loss because it became unable to expect the earnings projected at the time of acquiring Premium Agency Co., Ltd. (currently Flame Hearts Co., Ltd.).」
An impairment loss of ¥594.678 million was recognized in the creative business for buildings and other assets and goodwill.