Increase in Labor and Outsourcing Costs

「The gross profit margin improved by 0.5 percentage points year on year because the increase in sales exceeded the rise in costs.」

「Although amortization expenses, primarily for software developed in connection with service development, and royalty payments increased as cloud-service usage expanded, the gross profit margin improved by 0.7 percentage points year on year due to the streamlining of live-streaming operations, successful cost-reduction measures, and solid production and service sales with a high in-house production ratio, particularly at group companies.」

「In terms of costs, outsourcing expenses declined because production of content with a high in-house production ratio in the EVC field (pharmaceuticals) was strong, while contract service fees were also reduced as service development reached a certain stage. In addition, cost savings from the reduction and relocation of office space, including that of subsidiaries, carried out in the previous fiscal year took effect, resulting in a year-on-year decline in cost of sales.」

「In terms of costs, outsourcing expenses declined in line with sales. In light of the near-term operating outlook, the hiring plan was restrained and other expenses were extensively reviewed. On a cumulative basis, personnel expenses increased because of growth in development headcount, but cost of sales was below the level of the same period of the previous year.」

「On the cost side, outsourcing costs declined in line with sales. In view of near-term operating prospects, the company restrained its recruitment plan and substantially reviewed other expenses to reduce costs, but personnel and labor costs continued to trend higher year on year. Selling, general and administrative expenses declined by approximately 1% year on year as cost-cutting measures, including greater operating efficiency, were implemented.」

「In terms of costs, outsourcing expenses declined in line with sales, but personnel expenses and contract service fees increased as the service development structure was expanded, the use of external development resources was promoted to meet customer needs, and some personnel were transferred to the manufacturing division following an organizational change at a consolidated subsidiary.」

「Cost of sales rose to ¥7,514 million, up 5.9% year on year, as spending on outsourced services increased with the advancement of service development, outsourcing costs increased alongside higher system development sales, and labor costs increased as the workforce expanded amid continued efforts to enhance internal systems and strengthen recruitment measures, while the gross profit margin declined by 2.9 percentage points year on year.」

「On the cost side, spending on outsourced services increased as service development advanced, while outsourcing costs increased slightly as sales from system development grew. The company continued to enhance internal systems and strengthen recruitment measures to reinforce its development structure, resulting in higher labor costs and recruitment expenses as the workforce expanded.」

「In terms of costs, outsourcing expenses declined in line with sales, but contract service expenses related to advancing service development increased, as did personnel expenses and labor costs accompanying workforce expansion to strengthen the development structure and indirect functions.」

「In terms of costs, outsourcing expenses declined in line with sales, but personnel expenses and labor costs increased as the workforce was expanded to strengthen the service development structure and indirect functions.」

「Cost of sales was ¥7,094 million, down 6.7% year on year, as labor costs increased with the expansion of the workforce to strengthen the development and production structure, including the impact of M&A conducted in the consolidated accounting period of the third quarter of the previous fiscal year, but outsourcing costs declined and the in-house production ratio improved due in part to the decline in video-production projects, while the gross profit margin improved by 1.4 percentage points year on year.」

「In terms of costs, personnel expenses increased as the workforce was expanded to strengthen the development and production structure, including the impact of the M&A conducted in the third quarter of the previous fiscal year. However, the gross profit margin improved because outsourcing expenses could be reduced and the in-house production ratio improved as the number of video production projects declined, among other factors.」

「Labor costs increased as the workforce expanded to strengthen the development and production structure, including through M&A conducted in the consolidated accounting period of the third quarter of the previous fiscal year, but the resulting reduction in outsourcing costs and the increase in platform-related sales, primarily live streaming, led to an improvement in the gross profit margin.」

「On the cost side, the gross profit margin improved substantially as platform-related sales, primarily live streaming, increased and the in-house production ratio for projects such as web production rose.」

「Driven by higher sales of the high-margin J-Stream Equipmedia, which requires relatively little development expenditure, an increase in orders for highly specialized, high-value-added pharmaceutical-related live streaming and production, and the promotion of in-house production following the acquisition of アズーリ, cost of sales was ¥7,606 million, up 37.6% year on year, while the gross profit margin improved by 6.9 percentage points year on year.」

「On the cost side, outsourcing costs increased due to the sharp increase in live-streaming projects and the consolidation of 株式会社ビッグエムズワイ as a subsidiary, but the gross profit margin improved by 6.6 percentage points year on year due to higher sales of the high-margin J-Stream Equipmedia, which requires relatively little development expenditure, and an increase in orders for highly specialized, high-value-added pharmaceutical-related live streaming and production.」

「On the cost side, outsourcing costs increased due to the sharp increase in live-streaming projects and the consolidation of ビッグエムズワイ as a subsidiary, but the gross profit margin improved by 4.6 percentage points year on year as orders increased for highly specialized, high-value-added live streaming and pharmaceutical-related production.」

「On the cost side, outsourcing costs increased due to the consolidation of ビッグエムズワイ as a subsidiary and the sharp increase in live-streaming projects, but the gross profit margin improved by 3.1 percentage points year on year.」

「Outsourcing costs increased due to the expansion of media-related technical support operations and amounts recognized in connection with the consolidation of ビッグエムズワイ as a subsidiary, and this trend is expected to continue.」

「On the cost side, outsourcing costs increased due to the expansion of media-related technical support operations and amounts recognized in connection with the consolidation of ビッグエムズワイ as a subsidiary, and this trend is expected to continue.」

「On the cost side, outsourcing costs increased due to the expansion of media-related technical support operations and amounts recognized in connection with the consolidation of ビッグエムズワイ as a subsidiary.」

「The high proportion of outsourced work required for large-scale support operations became a factor in the relative decline in the profit margin.」

「Personnel expenses, outsourcing expenses and contract service fees increased as the development and operations structure was strengthened and the number of projects acquired in areas such as website renewals, system development and video production, which have relatively high outsourcing ratios, increased.」

「In terms of costs, personnel expenses, outsourcing expenses and contract service fees increased as the development and operations structure was strengthened and the number of projects acquired in areas such as website renewals, system development and video production, which have relatively high outsourcing ratios, increased. In addition, purchases of equipment for resale from イノコス社 became a factor increasing cost of sales.」

「In terms of costs, personnel expenses, outsourcing expenses and contract service fees increased as the development and operations structure was strengthened and the number of projects acquired in areas such as website renewals, system development and video production, which have relatively high outsourcing ratios, increased. In addition, purchases of equipment for resale from イノコス社 became a factor increasing cost of sales.」

「There were orders for technical support services related to media streaming and large-scale event streaming projects, but the use of agency sales services and the higher proportion of outsourced work became factors reducing the relative profit margin.」

「In terms of costs, outsourcing expenses increased as the development and operations structure was strengthened, the number of live-streaming projects increased, and measures were taken in response to workforce reductions at a production subsidiary, among other factors. Personnel expenses also increased as efforts were made to secure capable personnel in planning, development and other areas.」

「In terms of costs, outsourcing expenses increased as the development and operations structure was strengthened, the number of live-streaming projects increased, and measures were taken in response to workforce reductions at a production subsidiary, among other factors.」

「In terms of costs, personnel expenses increased as the development and operations structure was strengthened, while outsourcing expenses increased as the number of live-streaming projects and other projects rose. However, the impact of the dissolution of subsidiaries and other factors kept the cost ratio only slightly above that of the same period of the previous year.」