Earnings pressured by lower promotional spending and declining incentive income in the telecommunications sector
First written in FY2019-Q3. 3 of 4 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2020-Q3.
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- FY2020-Q3MitigatedAnnual report
「Profit increased as the gross profit margin improved due to lower outsourcing costs and other factors in the telecommunications field.」
Despite difficult business conditions in the telecommunications field, the sales outsourcing business recorded revenue of ¥17,547 million and segment profit of ¥1,338 million as the improvement in the gross margin from lower outsourcing costs and other factors absorbed the impact on profit. - FY2020-Q2MitigatedAnnual report
「Although incentive revenue in the telecommunications field declined, profit increased as the gross profit margin improved due to lower outsourcing costs and other factors. As a result, the sales outsourcing business recorded revenue of ¥11,778 million, up 9.0% year on year, and segment profit of ¥900 million, up 41.2%.」
Although the decline in incentive revenue in the telecommunications field continued, the improvement in the gross margin from lower outsourcing costs and other factors resulted in higher revenue and profit in the sales outsourcing business, partially absorbing the impact of the risk factors. - FY2020-Q1MitigatedAnnual report
「Although incentive revenue in the telecommunications field declined, profit increased as the gross profit margin improved due to lower outsourcing costs and other factors.」
Although the decline in incentive revenue in the telecommunications field continued, the improvement in the gross margin from lower outsourcing costs and other factors offset it, resulting in higher profit in the sales outsourcing business. - FY2019-Q3MaterialisedAnnual report
「In the telecommunications field, some business conditions stagnated because of the impact of customers' restraint on promotional spending and other factors. Profit declined as the gross profit margin fell due to lower incentive revenue in the telecommunications field and higher outsourcing costs, while personnel expenses increased as the number of sales offices grew to expand operations outside the telecommunications field. As a result, the sales outsourcing business recorded revenue of ¥16,630 million, up 2.9% year on year, and segment profit of ¥1,070 million, down 21.0%.」
The restraint of promotional spending by telecommunications customers and lower incentive revenue materialized as stagnant business conditions and lower profit in the sales business.