Delayed progress in the agency business due to clients’ weakening hiring appetite

「In the Accounting and Legal segment, results for the interim consolidated accounting period showed a gradual recovery despite the continuing impact of longer lead times to close recruitment placements from the previous period, with revenue of ¥1,248 million, up 105.3% year on year, and segment profit (operating profit) of ¥57 million, up 105.2% year on year.」

「Recovery trend in the fourth quarter」

「However, during the current interim consolidated accounting period, results were affected by reductions in projects from some major game publishers and longer times to close placements in the recruitment services business.」

「However, during the current first quarter, results were affected by factors including reduced projects from certain major game publishers and longer closing times for personnel-placement services.」

「Performance for the current consolidated fiscal year gradually recovered from the situation in the previous year, when the recruitment services business was strongly affected by delays in recruitment screening for clients' administrative functions and revisions to recruitment plans. Through thorough, attentive support for both registered users and clients, results remained above the same period of the previous year.」

「Demand remains firm for professionals with irreplaceable specialist capabilities, including creators, physicians, IT engineers, lawyers, accountants, architects, fashion designers, chefs and researchers connected through our Group's network. Although the resurgence of COVID-19 delayed the recovery in demand in some businesses, performance for the first six months of the current second quarter consolidated cumulative period exceeded the previous year's results and was generally in line with plan, absorbing proactive investments such as establishing new companies to expand operations and bringing into the Group a company operating an anime NFT platform.」

「Although we were strongly affected by the COVID-19 pandemic through the second quarter, including delays in recruitment screening for clients' administrative functions and revisions to recruitment plans, results remained above the same period of the previous year as we provided thorough, attentive support to both registered users and clients.」

「The impact of the COVID-19 pandemic included, as in the previous year, event cancellations across the country in the healthcare sector, a sharp decline in demand in the fashion and food sectors, and delayed recovery in demand for recruitment services, particularly in the accounting and legal sectors.」

「The impact of the COVID-19 pandemic included, as in the previous year, event cancellations across the country in the healthcare sector, a sharp decline in demand in the fashion and food sectors, and delayed recovery in demand for recruitment services, particularly in the accounting and legal sectors.」

「The impact of the novel coronavirus included event cancellations across the country in the healthcare sector, a sharp decline in demand in the fashion and food sectors, order cancellations caused by the suspension of China's supply chain for VR equipment, and a decline in demand in the recruitment services business, particularly in the accounting and legal sectors.」

「The spread of the novel coronavirus resulted in event cancellations across the country in the healthcare sector, a sharp decline in demand in the fashion and food sectors due to department stores and restaurants closing under the state of emergency, order cancellations caused by the suspension of China's supply chain for VR equipment, and a significant delay in clients' recruitment screening and a decline in demand due to revisions to recruitment plans in the recruitment services business, particularly in the accounting and legal sectors.」

「In addition, clients' worsening business conditions have reduced their appetite for recruitment, delaying progress in the agency business, and the situation is expected to affect consolidated results from the third quarter onward.」