Cost reductions and business transfer through structural reform of the IoT business
First written in FY2021-Q3. 7 of 17 entries say "Advanced", first in FY2021. Latest entry: 2026-07-15.
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- 2026-07-15ReframedFinancial Results Presentation
「Direct operation, higher profitability and expansion of the number of locations in the hostel business」
The RET business has been reorganized from its previous explanation centered on structural reform and cost reductions to a structure based on direct operation, higher profitability and expansion of the number of hostel locations, with expansion into real estate and enhancement of experience value and upselling presented as new challenges. - FY2026-H1RET Business: Maintained profitability despite lower revenue and earningsAnnual report
「As a result, revenue from the RET business for the current interim consolidated accounting period was ¥38 million, down 41.4% year on year, and segment profit was ¥7 million, down 65.6% year on year.」
While the occupancy rate at &AND HOSTEL remained high against a backdrop of inbound demand, the RET business recorded lower revenue and profit because property brokerage fees generated in the previous year were not recorded in the current period. However, the business remained profitable at the segment level. - FY2025The RET business recorded segment profit for the full yearAnnual report
「As a result, revenue from the RET business for the consolidated fiscal year was ¥119.087 million, and segment profit was ¥27.996 million.」
The occupancy rate at &AND HOSTEL remained high due to an increase in international guests, while real estate advisory fees and brokerage fees also contributed. The RET business recorded revenue of ¥119.087 million and segment profit of ¥27.996 million. - FY2025-H1The RET business turned profitable despite lower revenueAnnual report
「The company sold properties purchased and held for the development of &AND HOSTEL during the previous interim accounting period, and revenue was therefore substantially lower than in the same period of the previous year. However, because an impairment loss on the sale had resulted in an operating loss in the previous period, the RET business turned profitable during the current interim consolidated accounting period, and operating profit substantially exceeded the previous year's level.」
The RET business's revenue was substantially lower due to the reversal of property sales recorded in the same period of the previous year, while the business turned profitable during the current interim consolidated accounting period due to the reversal of the impairment loss that had resulted in an operating loss in the previous period. Segment profit was ¥21.11 million. - FY2024AdvancedAnnual report
「In addition, following the sale on 30 August 2024 of a property held and operated by the Company, the sale of all properties purchased and held for the development of &AND HOSTEL was completed.」
Following the downsizing and withdrawal from unprofitable businesses and the review of store contracts, the company proceeded to sell all properties held for development. The RET business has been reorganized around accommodation facility management services, real estate brokerage and development consulting as its sources of revenue. - FY2024-Q3The RET business recorded substantially higher revenue and a wider lossAnnual report
「Regarding properties purchased and held for the development of &AND HOSTEL, some properties were sold during the cumulative third quarter, resulting in the recognition of revenue from the sales and an impairment loss. In addition, one-off property brokerage fees were generated, resulting in a substantial increase in revenue compared with the same period of the previous year, while a segment loss was recorded. As a result, revenue from the RET business for the cumulative third quarter was ¥1,915.818 million, up 4,684.2% year on year, and the segment loss was ¥315.974 million, compared with a segment loss of ¥50.732 million in the same period of the previous year.」
The RET business recorded a substantial increase in revenue from the sale of some properties held and brokerage fees, while the segment loss widened from the same period of the previous year due to the recognition of an impairment loss. - FY2024-Q2The RET business recognized proceeds from property sales and recorded a wider lossAnnual report
「Regarding properties purchased and held for the development of &AND HOSTEL, some properties were sold during the cumulative second quarter, resulting in the recognition of revenue from the sales and an impairment loss. In addition, one-off property brokerage fees were generated, resulting in a substantial increase in revenue compared with the same period of the previous year. As a result, revenue from the RET business for the cumulative second quarter was ¥1,864.569 million, up 7,037.5% year on year, and the segment loss was ¥312.302 million, compared with a segment loss of ¥35.991 million in the same period of the previous year.」
The RET business recorded a substantial increase in revenue from the sale of some properties held and brokerage fees, while the segment loss widened from ¥35.991 million in the same period of the previous year to ¥312.302 million due to the recognition of an impairment loss. - FY2024-Q1The RET business recorded higher revenue and a wider lossAnnual report
「In addition, following contract reviews at some properties, revenue received and expenses borne by the company were reduced. … As a result, revenue from the RET business for the cumulative first quarter was ¥38.139 million, up 84.9% year on year, and the segment loss was ¥317.934 million, compared with a segment loss of ¥12.024 million in the same period of the previous year.」
While reductions in revenue received and expenses borne through contract reviews continued, the RET business loss widened significantly from the same period of the previous year due to an impairment loss on real estate held for sale. - FY2023-Q3Updated the RET business's third-quarter results (lower revenue and wider loss)Annual report
「As a result, revenue from the RET business for the cumulative third quarter was ¥40.044 million, down 64.2% year on year, and the segment loss was ¥50.732 million, compared with a segment loss of ¥36.477 million in the same period of the previous year.」
Although the company reported lower expenses resulting from contract reviews, the RET business recorded lower revenue and a wider segment loss year on year due to the termination of some lease agreements and the reversal of one-off revenue recorded in the same period of the previous year. - FY2023-Q2Updated the RET business's half-year resultsAnnual report
「The company reviewed contracts at certain stores, reducing the revenue it collected and the expenses it bore, which narrowed the loss compared with the same period of the previous year.」
Cost-structure reforms through contract reviews at some properties are continuing. The RET business recorded revenue of ¥26.123 million and a segment loss of ¥35.991 million, while the segment loss for the business as a whole increased from ¥34.290 million in the same period of the previous year. - FY2023-Q1AdvancedAnnual report
「During the cumulative first quarter, reservations by international guests at &AND HOSTEL, the accommodation facilities operated by the company, increased partly as a result of the easing of entry restrictions, and occupancy rates at each property began to recover. In addition, following contract reviews at some properties, revenue received and expenses borne by the company were reduced, narrowing the loss compared with the same period of the previous year. As a result, revenue from the RET business for the cumulative first quarter was ¥20.624 million, down 45.0% year on year, and the segment loss was ¥12.024 million, compared with a segment loss of ¥15.068 million in the same period of the previous year.」
In addition to an increase in reservations resulting from the easing of entry restrictions, revenue received and expenses borne were reduced through contract reviews at some properties. The RET business segment loss narrowed from ¥15.068 million in the same period of the previous year to ¥12.024 million. - FY2022AdvancedAnnual report
「The company is also outsourcing the operation of directly operated stores to third parties in light of the profitability outlook, and worked to reform the cost structure of the business as a whole. … As a result, revenue from the RET business for the fiscal year was ¥137.243 million, down 7.6% year on year, and the segment loss was ¥54.109 million, compared with a segment loss of ¥165.882 million in the previous year.」
The company advanced cost-structure reforms by outsourcing the operation of directly operated stores to third parties and reviewing contracts. The RET business segment loss narrowed from ¥165.882 million in the previous year to ¥54.109 million. - FY2022-Q3AdvancedAnnual report
「In the previous fiscal year, the company reviewed contracts at certain stores, reducing fixed costs such as rent at loss-making stores and narrowing the loss compared with the same period of the previous year. As a result, revenue from the IoT Business for the nine months ended [third quarter] of the current fiscal year was ¥111.712 million, up 0.3% year on year, and the segment loss was ¥36.477 million, compared with a segment loss of ¥129.848 million in the same period of the previous year.」
Fixed costs were reduced by reviewing contracts at some stores, narrowing the segment loss from ¥129.848 million in the same period of the previous year to ¥36.477 million. - FY2022-Q2AdvancedAnnual report
「In the previous fiscal year, the company reviewed contracts at certain stores, reducing fixed costs such as rent at loss-making stores and narrowing the loss compared with the same period of the previous year.」
Following the restructuring of the IoT Business, contract reviews at stores reduced fixed costs at loss-making stores, narrowing the RET Business segment loss from ¥101.843 million in the same period of the previous year to ¥34.290 million. - FY2022-Q1AdvancedAnnual report
「From the first quarter of the current fiscal year, following the implementation of restructuring in the IoT Business, the company reviewed its method of classifying business segments and changed its reportable segments from the former “APP Business” and “IoT Business” to the “APP Business” and “RET Business.”」
The IoT Business restructuring took concrete form in a change to the reportable segments and reorganization as the RET Business. Losses in Other Businesses also narrowed year on year following the transfer of accommodation and real estate-related services and the withdrawal from unprofitable businesses. - FY2021AdvancedAnnual report
「As of 31 August 2021, the transfer and handover of the innto, tabii and totono businesses were largely complete, and the company had reached a certain level of visibility regarding measures to improve earnings in the &AND HOSTEL business.」
The IoT Business restructuring progressed to the stage where the transfer and handover of the innto, tabii and totono businesses were largely complete and there was a certain level of visibility regarding earnings improvement at &AND HOSTEL. - FY2021-Q3First statedAnnual report
「At “&AND HOSTEL,” the company will amend contracts with the aim of reducing costs from the following fiscal year onward by reviewing the rent burden at certain stores. As a result, a special loss of ¥244.291 million is expected to arise in the fourth quarter of the fiscal year ending August 2021 as a penalty for the contract amendments. At the Board of Directors meeting held on 15 July 2021, the company resolved to transfer the “totono” business and entered into a transfer agreement. c. Scheduled completion date of the transfer 31 August 2021」
The company disclosed for the first time specific details of the IoT Business restructuring, including reviewing rent burden agreements at certain &AND HOSTEL stores, advancing discussions on the transfer of the innto and tabii businesses, and executing a transfer agreement for totono. Restructuring-related costs were expected to result in a total special loss of ¥289.185 million.