Failure to reach the break-even point due to upfront investment in the media business
First written in FY2018-Q1. 8 of 14 entries say "Mitigated", first in FY2018-Q2. Latest entry: FY2021-Q2.
No other company in this theme has enough history to compare yet.
- FY2021-Q2MitigatedAnnual report
「Our efforts to enhance paid content on our own websites as part of building a revenue structure not reliant solely on search engines proved effective, and we posted operating income. As a result, sales in the Media business for the current second-quarter cumulative consolidated period were ¥58 million, up 30.1% year on year, and operating income was ¥1 million, compared with an operating loss of ¥1 million in the same period of the previous year.」
Strengthening paid content on our own websites proved effective, and the Media business achieved operating profitability, further reducing the risk of failing to reach break-even due to upfront investment. - FY2021-Q1MitigatedAnnual report
「As a result, sales in the Media business for the current first-quarter cumulative consolidated period were ¥30 million, up 40.9% year on year, and operating income was ¥4 million, up 296.1% year on year.」
The Media business turned an operating loss in the same period of the previous year into operating income, reducing the risk of failing to reach break-even due to upfront investment based on its first-quarter segment results. - FY2020WorsenedAnnual report
「As a result, although we did not achieve operating profitability, sales increased year on year. Sales in the Media business for the current consolidated accounting year were ¥142 million, up 88.6% year on year, and the operating loss was ¥29 million, compared with an operating loss of ¥26 million in the same period of the previous year.」
The Media business increased sales but did not achieve profitability, and the operating loss widened from ¥26 million in the previous year to ¥29 million. - FY2020-Q3MitigatedAnnual report
「The Media business operates websites using AI. During the current third-quarter cumulative consolidated period, sales continued to increase year on year due to the stable operation of existing media, but operating profitability was not achieved.」
Sales increased due to the stable operation of existing media, and the operating loss narrowed from ¥21 million in the same period of the previous year to ¥20 million. However, the business had not yet achieved profitability. - FY2020-Q2MitigatedAnnual report
「The Media business did not achieve profitability due to depreciation and other expenses associated with the release of new media services, but stable operation of existing media continued to increase sales year on year and substantially reduce the operating loss.」
The new media's depreciation expenses left the business in the red, but stable operation of existing media increased sales and reduced the operating loss, lowering the impact of failing to reach break-even due to upfront investment. - FY2020-Q1MitigatedAnnual report
「As a result, sales in the Media business for the current first-quarter cumulative consolidated period were ¥30 million, up 123.4% year on year, and the operating loss was ¥3 million, compared with an operating loss of ¥10 million in the same period of the previous year.」
The Media business increased sales, and the operating loss narrowed substantially from ¥10 million in the same period of the previous year to ¥3 million. Although it remained loss-making at the operating level, the impact of failing to reach break-even due to upfront investment had decreased. - FY2019MitigatedAnnual report
「Sales in the Media business for the current consolidated accounting year were ¥75 million, up 17.8% year on year, and the operating loss was ¥26 million, compared with an operating loss of ¥27 million in the same period of the previous year.」
The Media business increased sales, while the operating loss narrowed slightly from ¥27 million to ¥26 million. However, it remained loss-making at the operating level. - FY2019-Q3WorsenedAnnual report
「During the current third-quarter cumulative consolidated period, sales increased due to the expansion of advertising inventory at existing media and the diversification of our revenue structure, but production costs for several new media services to be released in the fourth-quarter consolidated accounting period put downward pressure on profit.」
Sales increased, but production costs for several new media services put downward pressure on profit, widening the Media business's operating loss from ¥16 million in the same period of the previous year to ¥21 million. - FY2019-Q2MitigatedAnnual report
「As a result, sales in the Media business for the current second-quarter cumulative consolidated period were ¥30 million, up 50.5% year on year, and the operating loss was ¥16 million, compared with an operating loss of ¥18 million in the same period of the previous year.」
The Media business increased sales by 50.5% year on year, while the operating loss improved from ¥18 million to ¥16 million. However, it remained loss-making at the operating level. - FY2019-Q1The Media business narrowed its operating loss, but new media had yet to generate revenueAnnual report
「A major factor was that measures to address search engine optimisation (SEO), developed during the previous consolidated accounting year, became less effective following algorithm changes by portal-site search engines. Although advertising revenue remained sluggish, the existing media service Kanau contributed, resulting in higher sales year on year. Meanwhile, the new media had not yet contributed to revenue, and the Media business as a whole recorded an operating loss.」
Supported by Kanau, sales increased year on year and the operating loss narrowed from ¥18 million in the same period of the previous year to ¥10 million, but the new media had still not contributed to revenue, and the business as a whole remained in the red. - FY2018WorsenedAnnual report
「Kanau made a certain contribution to our Group's revenue, but costs associated with its development resulted in an operating loss for the Media business as a whole. As a result, sales in the Media business for the current consolidated accounting year were ¥64 million, compared with none in the previous consolidated accounting year, and the operating loss was ¥27 million, compared with an operating loss of ¥11 million in the same period of the previous year.」
Kanau contributed to revenue, but development costs caused the operating loss for the Media business as a whole to widen from ¥11 million in the same period of the previous year to ¥27 million. - FY2018-Q3The core site turned profitable, but the business as a whole remained loss-makingAnnual report
「The free provision of our extensive fortune-telling content, one of our strengths, proved effective, and Kanau steadily increased revenue after passing the break-even point in January. However, as we are actively developing new services other than Kanau and yummy!, the Media business as a whole recorded an operating loss. As a result, sales in the Media business for the current third-quarter cumulative consolidated period were ¥41 million, and the operating loss was ¥16 million.」
Kanau passed the break-even point, but upfront investment in developing new services resulted in an operating loss of ¥16 million for the Media business as a whole. - FY2018-Q2MitigatedAnnual report
「We focused on strengthening user acquisition by analyzing topics of interest to women in their 20s and 30s, the main target demographic for our fortune-telling business. The media business achieved profitability in January and continues to record average monthly page views of more than 15 million.」
Although the Media business has recorded an operating loss on a cumulative basis, it achieved operating profitability in January, reducing the risk of failing to reach break-even due to upfront investment on a monthly basis. - FY2018-Q1First statedAnnual report
「Advertising expenses are currently our main source of revenue, but because the business had been operating for less than 6 months, upfront investment had not exceeded the break-even point, and we recorded an operating loss. As a result, sales in the Media business for the current first-quarter cumulative consolidated period were ¥3 million, and the operating loss was ¥18 million.」
In the Media business, which had been operating for less than 6 months, upfront investment remained below the break-even point, resulting in sales of ¥3 million and an operating loss of ¥18 million.