Operating Losses from Upfront Costs for New Business Development
First written in FY2017-Q3. 1 of 5 entries say "Worsened", first in FY2017. Latest entry: FY2026.
en moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2019: 6 of 26 companies on the "Worse" side.
10 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For certain asset groups in the domestic recruitment services business, operating income and loss generated by operating activities remained negative. Accordingly, the carrying amount was reduced to the recoverable amount, and the reduction of ¥386 million was recorded as an impairment loss under extraordinary losses.」
Shortfalls in revenue and impairment risks related to new businesses and services actually materialised as an impairment loss of ¥386 million on certain assets of the domestic recruitment services business. - FY2025ReframedAnnual report
「If additional expenditures, such as system investment, research and development expenses, advertising expenses and personnel expenses, are incurred in connection with initiatives for new businesses, or if the expected revenue is not generated, this may constitute an indication of impairment of fixed assets and may affect the performance of the Group.」
The company has broadened the scope from the risk of losses due to upfront costs for new businesses to wider new-business risks, including additional investment, failure to achieve expected revenue and impairment of fixed assets. - FY2018MitigatedAnnual report
「The amount was ¥30 million, an improvement of ¥207 million year on year, owing in part to a decrease in expenses related to new businesses incurred in the previous consolidated fiscal year.」
The reduction in expenses related to new businesses reduced the factors contributing to the education and assessment business's operating loss, resulting in an improvement to operating profit. - FY2017WorsenedAnnual report
「In terms of earnings, the company posted an operating loss of ¥176 million, compared with an operating loss of ¥101 million in the previous fiscal year, because costs for new business development outside the recruitment business were recorded in this segment.」
An operating loss attributable to new business development costs was actually incurred, and the loss widened from the previous fiscal year. - FY2017-Q3First statedAnnual report
「In terms of earnings, the company posted an operating loss of ¥48 million, compared with an operating loss of ¥91 million in the same period of the previous year, due to upfront costs for new business development and other initiatives.」
The company states that upfront costs for new business development and other initiatives were actually incurred and contributed to the operating loss in the education and assessment business.