Impairment of Site 3 and cloud service assets due to price competition
First written in FY2016. 4 of 10 entries say "Worsened", first in FY2018. Latest entry: FY2025.
BroadBand Tower moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
0 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Although the Company recorded fixed asset impairment losses of ¥271 million in the Computer Platform Business, up 37.9% year on year, and an ¥88 million valuation loss on investment securities at GiTV Fund I Investment, L.P., down 60.1%, as extraordinary losses in the current period, profit increased due to higher ordinary income.」
Amid risks to the recoverability of fixed assets due to price competition, customer cancellations and other factors, fixed asset impairment losses increased from ¥196 million in the previous year to ¥271 million. - FY2022WorsenedAnnual report
「As a result, the Company recorded the reduction of ¥1,008.000 million as an impairment loss under extraordinary losses.」
Impairment losses related to data center equipment and other assets increased substantially from ¥115.614 million in the previous year to ¥1,008.000 million. The affected assets included shared assets such as headquarters and research facilities, as well as data center equipment and other assets. - FY2021WorsenedAnnual report
「In this business environment, based on projections of future earnings, the Company determined that it would be difficult to recover its investments in the future for equipment and other assets related to the data center (Sites 1, 3 and 5). Accordingly, it reduced the carrying amount of the relevant asset group to its recoverable amount and recorded the reduction of ¥115.614 million as an impairment loss under extraordinary losses.」
Impairment losses related to Sites 1, 3 and 5 exceeded ¥115 million, increasing from more than ¥36 million in the previous year for data center equipment. - FY2020MaterialisedAnnual report
「The Company recorded impairment losses of ¥112 million in the current consolidated fiscal year. Based on projections of future earnings, it determined that it would be difficult to recover its investments in the future for equipment and other assets related to the data center (Sites 1, 3 and 5). Accordingly, it reduced the carrying amount of the relevant asset group to its recoverable amount and recorded the reduction of ¥36.527 million as an impairment loss under extraordinary losses.」
The Company recorded an impairment loss of ¥36.527 million on data center equipment amid ongoing price competition, with total impairment losses of ¥112.058 million, including those on JC-HITS IP and assets used in the AI business, actually incurred. - FY2018RestatedAnnual report
「Market prices for data center services, cloud solutions services, Data Solutions services, data broadcasting services, and line resale and live transmission services have been trending downward, mainly due to the effects of price competition, and the business environment surrounding these services remains challenging.」
The risk of impairment due to ongoing price competition and falling market prices continued, and the Company recorded an impairment loss of ¥211 million in the current period. - FY2018WorsenedAnnual report
「Market prices for data center services, cloud solutions services, Data Solutions services and video transmission services have been trending downward, mainly due to the effects of price competition, and the business environment surrounding these services remains challenging. In this business environment, based on projections of future earnings, the Company determined that it would be difficult to recover its investments in the future for equipment and other assets related to the data center (Sites 1, 3 and 5), verification equipment and other assets related to the cloud solutions and Data Solutions businesses, and video transmission equipment. Accordingly, it reduced the carrying amount of the relevant asset group to its recoverable amount and recorded the reduction of ¥416.867 million as an impairment loss under extraordinary losses.」
Impairment losses resulting from price competition and falling market prices increased from ¥163.638 million in the previous fiscal year to ¥416.867 million, with the affected assets expanding to include Sites 1, 3 and 5 and other assets. - FY2017MaterialisedAnnual report
「Market prices for data center services, cloud solutions services, Data Solutions services and AnchorPerson.TV have been trending downward, mainly due to the effects of price competition, and the business environment surrounding these services remains challenging. In this business environment, based on projections of future earnings, the Company determined that it would be difficult to recover its investments in the future for the data center (Site 5), verification equipment related to the cloud solutions and Data Solutions businesses, and equipment related to the AnchorPerson.TV business. Accordingly, it recorded an impairment loss of ¥163.638 million as an extraordinary loss.」
Against a backdrop of price competition and falling market prices, the Company recorded an impairment loss of ¥163 million on assets related to Site 5, cloud services, Data Solutions and AnchorPerson.TV. - FY2016First statedAnnual report
「Market prices for data center services and cloud services have been trending downward, mainly due to the effects of price competition, and the business environment surrounding these services remains challenging.」
Against a backdrop of price competition and falling market prices, the Company recorded an impairment loss of ¥284 million on Site 3 and cloud service equipment and other assets.