Risk of New Businesses Falling Short of Plan and Burden of Upfront Investment
First written in FY2023. 3 of 11 entries say "Restated". Latest entry: 2026-08-14.
Excite Holdings moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2017: 6 of 20 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026RestatedAnnual report
「For new businesses and services, we conduct sufficient monitoring at the planning and development stages and reduce risk by maintaining a balanced business portfolio. We therefore believe the likelihood of occurrence is low. However, because there are many uncertainties, if the development of new businesses and services does not progress as expected, the Group’s business and performance may be affected.」
The Company continues to disclose the risks of new businesses falling short of plan and the burden of upfront investment, citing monitoring, portfolio management, and investment-committee review as responses. - 2026-05-15WorsenedEarnings
「At ONE MEDICAL㈱, the range of medical specialties expanded and significant growth was expected, prompting the company to undertake proactive promotion. Revenue was ¥2,874.314 million, up 200.1% year on year, while the company recorded an operating loss of ¥155.884 million, compared with operating income of ¥5.108 million in the same period of the previous year.」
The medical business achieved substantial revenue growth, but recorded an operating loss as a result of proactive promotional activities. - FY2026-H1WorsenedAnnual report
「During the six months ended September 30, ONE MEDICAL Co., Ltd. expanded its medical specialties and conducted proactive promotion because substantial growth was expected. Revenue was ¥1,189,667 thousand, compared with ¥92,537 thousand in the same period of the previous year, and operating income was a loss of ¥124,809 thousand, compared with a loss of ¥7,222 thousand in the same period of the previous year.」
In the newly expanded medical business, proactive promotion following the expansion of medical specialties increased revenue but resulted in an operating loss of ¥124,809 thousand. - FY2025-H1MitigatedAnnual report
「During the six months ended September 30, revenue was ¥450,716 thousand, up 51.2% year on year, and operating income was a loss of ¥53,541 thousand, compared with a loss of ¥64,826 thousand in the same period of the previous year, due to growth in the SssS business.」
Revenue increased and the operating loss narrowed in the SaaS and DX businesses, indicating a partial reduction in the burden of upfront investment. The business remains loss-making. - FY2024MaterialisedAnnual report
「Because revenue generation in some SaaS and DX services has been delayed and we determined that it would take time to achieve the planned figures, we recognized an impairment loss.」
Delayed revenue generation in the new businesses became apparent, resulting in a ¥66,508 thousand impairment loss in the SaaS and DX businesses. - FY2024-Q3RestatedAnnual report
「During the nine months ended December 31, revenue was ¥468,310 thousand, down 2.9% year on year, and operating income was a loss of ¥89,369 thousand, compared with a loss of ¥133,882 thousand in the same period of the previous year, due to upfront investments associated with launching SaaS businesses such as FanGrowth and KUROTEN.」
The burden of upfront investment continued, resulting in an operating loss of ¥89,369 thousand for the nine months. - FY2024-Q2RestatedAnnual report
「During the six months ended September 30, revenue was ¥298,052 thousand and operating income was a loss of ¥64,826 thousand, due to upfront investments associated with launching SaaS businesses such as FanGrowth and KUROTEN.」
The burden of upfront investment continued, resulting in an operating loss of ¥64,826 thousand for the six months. No new failure to meet plan was stated. - FY2024-Q1MaterialisedAnnual report
「During the three months ended June 30, revenue was ¥136,901 thousand and operating income was a loss of ¥38,843 thousand, due to upfront investments associated with launching SaaS businesses such as KUROTEN and FanGrowth.」
The burden of upfront investment in new businesses materialized, resulting in an operating loss of ¥38,843 thousand in the SaaS and DX businesses. No failure to meet plan was stated. - FY2023First statedAnnual report
「If the development of new businesses and services does not progress as expected, the Group’s business and performance may be affected. Additional expenditures, including system investment and advertising expenses associated with initiatives for new businesses, may also arise and reduce profit margins.」
The Company identifies uncertainty in new businesses, additional system and advertising expenses, and lower profit margins as risks.