Upfront Investment in New Businesses and Uncertainty over Investment Recovery
First written in FY2018. 1 of 3 entries say "Restated". Latest entry: FY2021-Q2.
ZIGExN moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 30 of 87 companies on the "Worse" side.
29 other companies' latest entry also says "Materialised".
- FY2021-Q2MaterialisedAnnual report
「Because profitability remained depressed for longer than initially expected due to factors including weak overseas travel demand resulting from the impact of the COVID-19 pandemic, and estimates were made on the assumption that profitability would gradually recover over the next several years, recoverable amounts fell below carrying amounts. Accordingly, an impairment loss of ¥1,931 million on goodwill and other assets was recorded.」
Uncertainty over recovering investments in new businesses and acquired companies materialised in the form of declining profitability at Apple World and the recognition of an impairment loss. - FY2020RestatedAnnual report
「This may result in additional spending on upfront system investment, advertising and promotional expenses, and other items, which could reduce the profit margin. In addition, if the expansion and growth of the Life Media Platform business or new businesses in the new areas we have entered do not proceed as initially forecast, we may be unable to recover our investment, which could affect the business and performance of our group.」
Upfront investment and additional spending for new businesses, together with uncertainty over investment recovery if plans fall short, continue to be disclosed. - FY2018First statedAnnual report
「This may result in additional spending on upfront system investment, advertising and promotional expenses, and other items, which could reduce the profit margin. In addition, if the expansion and growth of the Life Media Platform business or new businesses in the new areas we have entered do not proceed as initially forecast, we may be unable to recover our investment, which could affect the business and performance of our group.」
Upfront investment and additional spending associated with expanding new businesses and services, as well as the inability to recover investments if plans fall short, have been identified as risks.