Failure to Recover Development and Advertising Costs
First written in FY2021. 2 of 5 entries say "Materialised", first in FY2022. Latest entry: FY2025.
WonderPlanet moved to the "Worse" side of this theme in 2025, 6 years after the typical company in this theme (2019).
The whole theme swung hardest in 2025: 4 of 15 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「For PANDOLAND, preregistrations in the Traditional Chinese-language markets, which we prioritized, progressed as expected, but advertising acquisition efficiency and user retention fell short of expectations. Together with the Japanese version, which launched in June 2024, the results fell significantly below the assumptions at the beginning of the fiscal year.」
For Pandoland, user-acquisition efficiency and user retention were below expectations, making the risk of failure to achieve the expected results from development and advertising investment concrete. - FY2024RestatedAnnual report
「However, in continuing our business, if the schedule for developing new titles or their updates is delayed, development is discontinued, the expected results are not achieved, or advertising fails to produce the expected effect, we may be unable to recover development and advertising costs, which could affect our business, results of operations and financial condition.」
The risk of being unable to recover development and advertising costs because of development delays or discontinuation, failure to achieve expected results, or ineffective advertising continues. - FY2023MitigatedAnnual report
「We are working to establish a stable financial foundation by applying the expertise accumulated through our existing titles, managing development progress on a title-by-title basis and carrying out advertising after assessing its cost-effectiveness.」
The company expressly identifies development progress management and management of the cost-effectiveness of advertising as measures to address the risk. The risk of being unable to recover development and advertising costs continues to be disclosed. - FY2022MaterialisedAnnual report
「We had expected revenue from this title for the current fiscal year to be approximately ¥1,140 million, but it was approximately ¥480 million, below expectations. In terms of expenses, development investment through release remained within the initial forecast, but because we prioritised securing the user base through the advertising investment described above, advertising expenses for the full year, initially expected to be approximately ¥440 million, amounted to approximately ¥830 million, exceeding expectations.」
The risk of recovering development and advertising costs has materialised in actual results because revenue from Alice Fiction fell short of expectations and advertising expenses exceeded expectations. - FY2021First statedAnnual report
「However, if unforeseen circumstances delay the schedule for developing a new title or its updates, lead to development being discontinued, or prevent the expected results from being achieved, or if advertising fails to produce the expected effect, we may be unable to recover development and advertising costs, which could affect our business, results of operations and financial condition.」
The company identifies the risk of being unable to recover its investment because of development delays or discontinuation and ineffective advertising, against a backdrop of longer development periods, higher development costs and increased advertising expenses.