Sales Dependence on NHK and Risk to Ongoing Business
First written in FY2018. 7 of 12 entries say "Softened", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2026: 39 of 122 companies on the "Worse" side.
- FY2026DroppedAnnual report
「We completely withdrew from the business as of September 2023.」
The previous risk based on dependence on NHK revenue disappeared from the current business risk disclosures after the company completely withdrew from NHK contract and collection services. - FY2024SoftenedAnnual report
「In the fiscal year ended February 2024, NHK operations accounted for 3.5% of consolidated net sales, reducing our group’s dependence on NHK operations.」
The company disclosed that dependence on NHK revenue declined from 30.0% in the previous fiscal year to 3.5%, further reducing the concentration risk. - FY2024-Q3SoftenedAnnual report
「During the cumulative third quarter, NHK-related sales accounted for only 4.9% of consolidated net sales.」
Dependence on NHK revenue declined further from 6.8% in the previous quarter to 4.9%, reducing the concentration risk. - FY2024-Q2SoftenedAnnual report
「During the cumulative second quarter, NHK-related sales accounted for only 6.8% of consolidated net sales.」
Dependence on NHK revenue declined further from 9.6% in the previous quarter to 6.8%. - FY2024-Q1SoftenedAnnual report
「During the cumulative first quarter, NHK-related sales accounted for only 9.6% of consolidated net sales.」
Dependence on NHK revenue declined from 30.0% in the previous consolidated fiscal year to 9.6% during the cumulative first quarter, indicating further progress in reducing dependence. - FY2023SoftenedAnnual report
「Dependence on NHK for net sales is expected to decline substantially.」
NHK’s share of sales declined from 61.1% in the previous fiscal year to 30.0% in the current fiscal year, substantially reducing revenue dependence. The risk of the end of NHK operations and lower sales continued to be disclosed. - FY2023-Q3WorsenedAnnual report
「As reported, the NHK outsourcing contract will be completely terminated in September 2023, and we believe it is broadly certain that sales from our main sales promotion business will decline substantially within a short period.」
The potential end of NHK operations has developed from a concern into an expectation of an almost certain substantial sales decline, following the halt in extensions of existing contracts. - FY2023-Q2MaterialisedAnnual report
「Cumulative second-quarter net sales were ¥2,231,176 thousand, down ¥331,376 thousand, or 12.9%, from the same period of the previous year. Although we worked to expand the sales outsourcing business and the media business performed strongly, the decline in NHK operations resulted in lower sales.」
The reduction in NHK operations became an actual cause of lower sales. Consolidated sales fell 12.9% year on year despite expansion of the sales outsourcing and media businesses. - FY2022WorsenedAnnual report
「Our group’s main business is contracting and collection services for broadcasting reception fees, and approximately 60% of consolidated net sales depend on NHK alone. However, as the NHK business may end in September 2023, we urgently need to secure a stable earnings base to replace it.」
Dependence on NHK was approximately 60%, with NHK accounting for 61.1% of reported sales. The likely termination of NHK operations in September 2023 newly established a specific deadline and heightened the significance of the relationship risk. - FY2021SoftenedAnnual report
「Because more than 65% of our net sales depend on NHK, we believe it is important for our future development to operate multiple independent businesses and grow into a more diverse and robust business organization.」
The stated dependence on NHK declined from “more than 70%” to “more than 65%.” NHK accounted for 65.5% of reported sales, and the policy of reducing dependence through the media business and other operations continued. - FY2020SoftenedAnnual report
「Because more than 70% of our net sales depend on NHK, we believe it is important for our future development to operate multiple businesses and grow into a more robust organization.」
The stated dependence on NHK changed from “more than 80%” to “more than 70%.” However, NHK accounted for 77.5% of reported sales, so the concentration risk continued. - FY2018First statedAnnual report
「Because more than 80% of our net sales depend on NHK, we are currently operating multiple businesses centered on the media business, including Iepla and Altema, in an effort to reduce the proportion of sales derived from NHK.」
The company quantifies its dependence on NHK and identifies expansion of the media business as a measure to reduce that dependence.