Risks Related to Renewal of the NHK Outsourcing Agreement and Changes to the Broadcast Act
First written in FY2018. 3 of 8 entries say "Restated". Latest entry: FY2024-Q2.
Correc Holdings moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 6 of 28 companies on the "Worse" side.
8 other companies' latest entry also says "Materialised".
- FY2024-Q2MaterialisedAnnual report
「Since the report, there have been no new tender projects or extensions of existing projects, and all NHK operations outsourced to us will be discontinued at the end of September 2023.」
Regarding the previously disclosed contract-continuation risk based on whether formal notification had been received from NHK, the Company explicitly stated that all contracted services would end at the end of September 2023, making the contract termination concrete. - FY2023-Q3WorsenedAnnual report
「Although the Company has not yet received any notification or other communication from NHK regarding this report, no new bidding opportunities have been announced since the report, and existing contracts have not been extended at expiration as they had been previously,」
Although the Company states that it has not received formal notification from NHK, it has disclosed the specific circumstances of the suspension of new bidding and the discontinuation of extensions to existing contracts, indicating that the contract-continuation risk has worsened. - FY2022WorsenedAnnual report
「Regarding the business environment surrounding the Group, although progress in vaccinations has raised expectations for an economic recovery following the global spread of COVID-19 that began in the first half of 2020, the emergence of new COVID-19 variants means that uncertainty about the outlook continues. For the Group, it is urgent to secure a stable earnings base to replace its NHK operations, which it has operated as a core business, and to expand its business, as those NHK operations are highly likely to end in September 2023.」
In addition to the general contract-continuation risk arising from the absence of an automatic renewal clause, the disclosure states that the NHK operations are highly likely to end in September 2023. - FY2021RestatedAnnual report
「However, the outsourcing contracts with NHK contain no automatic-renewal clause, so there is no legal guarantee that we will continue providing the services after the contract period expires.」
The Company continues to disclose the risk that the NHK contract contains no automatic renewal clause and that there is no legal assurance of contract continuation. - FY2020RestatedAnnual report
「However, the outsourcing contracts with NHK contain no automatic-renewal clause, so there is no legal guarantee that we will continue providing the services after the contract period expires.」
The risk that NHK contracts have no automatic-renewal clause and no legal guarantee of continuation continues to be disclosed. - FY2020-Q2RestatedAnnual report
「Cumulative second-quarter net sales were ¥2,310,553 thousand. Although new projects involving contracting and collection services for broadcasting reception fees were secured steadily, the figure was affected by exemptions from reception fees for students eligible for scholarships, which took effect on 1 February 2019.」
The reception-fee exemptions effective 1 February 2019 continued to affect sales in the sales outsourcing business during the cumulative second quarter. - FY2020-Q1MaterialisedAnnual report
「In this segment, revenue from contracting and collection services for broadcasting reception fees was affected by exemptions from reception fees for students eligible for scholarships, which took effect on 1 February 2019, resulting in net sales of ¥921,842 thousand.」
A change to the reception-fee system actually affected sales in the sales outsourcing business, bringing the previously disclosed risk of changes to NHK-related systems and regulations to fruition. - FY2018First statedAnnual report
「The outsourcing contracts with NHK contain no automatic-renewal clause, so there is no legal guarantee that we will continue providing the services after the contract period expires.」
The company states that contracts do not renew automatically and that changes in the business relationship, or amendments to or changes in the interpretation of the Broadcast Act and other laws, could affect performance.