Risk of wider consolidated losses due to front-loaded development costs for the GU business
First written in FY2021. 11 of 15 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1MitigatedAnnual report
「In the metaverse business, the decision to take a long-term view of 10±5 years and reduce the investment amount resulted in revenue of ¥47.724 million, down 31.6% year on year, and a segment loss of ¥18.871 million, compared with a segment loss of ¥39.882 million in the same period of the previous year.」
The risk of losses from development costs incurred ahead of revenue remains, but the segment loss narrowed year on year as a result of the shift to a long-term view and reduced investment. - FY2026MitigatedAnnual report
「In the current consolidated fiscal year, revenue and operating profit in the AI business declined year on year, but operating profit increased in the HT business, while losses in the Metaverse business and AI/MV Marketing business narrowed.」
The risk of expenses preceding revenue generation in the new businesses remains, but the company explains that losses incurred in the metaverse business and the AI/MV Marketing business decreased from the previous fiscal year. - FY2025ReframedAnnual report
「There is a risk that consolidated losses will become substantial due to development costs incurred in developing and agilely improving new businesses in the metaverse business and AI-related businesses, including the AI business.」
The risk of expenses preceding revenue generation has been broadened from the conventional GU and metaverse businesses to include new businesses in the AI business, in addition to the metaverse business. - FY2025-H1MitigatedAnnual report
「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥669 thousand, down 68.7% year on year, and the segment loss was ¥97.173 million, compared with a segment loss of ¥118.708 million in the same period of the previous year.」
Losses from development and upfront investments continue in the metaverse business, but the segment loss narrowed by ¥21.535 million year on year as a result of reduced investment. - FY2025-Q1MitigatedAnnual report
「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥356 thousand, down 75.4% year on year, and the segment loss was ¥49.613 million, compared with a segment loss of ¥55.219 million in the same period of the previous year.」
Losses from development and upfront investments continue in the metaverse business, but the segment loss narrowed year on year as a result of reduced investment. - FY2024MitigatedAnnual report
「The amount of losses incurred in the metaverse business decreased.」
As a result of reduced investment in the metaverse business, the annual segment loss was ¥229.184 million, down from ¥421.509 million in the previous year. - FY2024-Q3MitigatedAnnual report
「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥2.564 million, down 72.4% year on year, and the segment loss was ¥186.837 million, compared with a segment loss of ¥338.856 million in the same period of the previous year.」
The segment loss narrowed year on year as a result of reduced investment in the metaverse business. The risk of losses remains, but the loss declined from ¥338.856 million to ¥186.837 million. - FY2024-Q2MitigatedAnnual report
「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥2.139 million, down 49.7% year on year, and the segment loss was ¥120.614 million, compared with a segment loss of ¥225.995 million in the same period of the previous year.」
The risk of losses from development and upfront investments in the metaverse business continues, but the segment loss narrowed year on year due to reduced investment. - FY2024-Q1MitigatedAnnual report
「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥1.449 million, down 2.9% year on year, and the segment loss was ¥56.241 million, compared with a segment loss of ¥110.442 million in the same period of the previous year.」
The risk of losses from development and upfront investments in the metaverse business continues, but the segment loss narrowed year on year as a result of reduced investment. - FY2023-Q3MitigatedAnnual report
「During the cumulative third-quarter period, group revenue increased 5.9% year on year to ¥3,254.879 million, operating profit increased 154.0% to ¥369.452 million, ordinary profit increased 137.0% to ¥397.836 million, and quarterly net profit attributable to owners of the parent was ¥155.980 million, compared with a quarterly net loss attributable to owners of the parent of ¥80.314 million in the prior-year period.」
Expenses from upfront investments, including research and development costs, continue in the metaverse business, but consolidated operating income and ordinary income were substantially higher than in the same period of the previous year, and net income also turned from a loss to a profit. Pressure on consolidated performance from upfront investments has eased. - FY2023-Q2MitigatedAnnual report
「In the metaverse business, revenue was ¥4.251 million, compared with ¥100,000 in the same period of the previous year, and the segment loss was ¥225.995 million, compared with a segment loss of ¥257.169 million in the same period of the previous year.」
Expenses from upfront investments, including research and development costs, continue in the metaverse business, but the segment loss narrowed from ¥257.169 million in the same period of the previous year to ¥225.995 million. - FY2023-Q1MitigatedAnnual report
「The MT business remained strong, but the metaverse business incurred expenses from upfront investments, including research and development costs.」
Expenses from upfront investments, including research and development costs, continue in the metaverse business, but the segment loss narrowed from the same period of the previous year, while consolidated operating income and net income increased. Earnings pressure from upfront investments remains, but its impact has eased from the same quarter of the previous fiscal year. - FY2022-Q3WorsenedAnnual report
「The MT business remained strong, but the metaverse business incurred expenses from upfront investments, including research and development costs.」
Expenses from upfront investments, including research and development costs, continued in the metaverse business, which recorded a segment loss of ¥372.968 million for the nine months ended Q3. - FY2022-Q1MaterialisedAnnual report
「The MT business remained strong, but the GU business incurred expenses from upfront investments, including research and development costs.」
The GU business incurred expenses from upfront investments, including research and development costs, resulting in a segment loss of ¥146.059 million. - FY2021First statedAnnual report
「The development costs for the GU business, which is expected to become our core business, are required to be expensed rather than capitalized in light of the business's "novelty" and stage of development. As a result, there is a risk that consolidated losses will remain substantial for the time being due to development costs incurred in developing and agilely improving the GU business.」
The company has identified as a new risk the possibility of substantial consolidated losses in the near term as a result of expensing, rather than capitalizing, development costs for the GU business.