Increased costs associated with digitalization and loss of sponsors
First written in FY2021. 3 of 7 entries say "Materialised", first in FY2023-Q2. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025RestatedAnnual report
「The Company is taking a range of measures to improve media value, including converting advertising media to digital signage and linking it with Web services to improve user convenience. However, if diversification of advertising methods and changes in advertising sponsors' preferences reduce opportunities for the Company's proposed advertising media to be selected, resulting in the loss of sponsors or lower contract renewal rates in the Navita business」
Continues to identify measures to improve media value through conversion to digital signage and Web integration, alongside the risk of losing sponsors and lower contract renewal rates due to changes in advertising methods and sponsor preferences. - FY2024MitigatedAnnual report
「Cost of sales for the fiscal year was ¥4,667 million, down 1.2% year on year. This was mainly due to lower advertising payments and depreciation expenses in the Navita business.」
Discloses lower advertising placement fees and depreciation costs in the Navita business associated with digitalisation and related measures. At the same time, it continues to identify the risk of losing sponsors and lower contract renewal rates due to the diversification of advertising methods. - FY2023MaterialisedAnnual report
「Due mainly to higher depreciation of Navita units and greater business-segment costs from proactive investment, revenue was ¥8,019 million, up 0.6% year on year, and segment profit was ¥1,020 million, down 6.6%.」
States that higher depreciation of Navita units and greater costs from proactive investment actually occurred and were reflected in lower segment profit in the Navita business. - FY2023-Q3MaterialisedAnnual report
「Due mainly to higher depreciation of Navita units and greater business-segment costs from proactive investment, revenue was ¥3,997 million, up 0.3% year on year, and segment profit was ¥499 million, down 12.2%.」
States that higher depreciation of Navita units and greater costs from proactive investment actually emerged as factors behind the decline in segment profit for the nine months ended Q3. - FY2023-Q2MaterialisedAnnual report
「Due mainly to higher depreciation of Navita units and greater business-segment costs from proactive investment, revenue was ¥3,997 million, up 0.3% year on year, and segment profit was ¥499 million, down 12.2%.」
States that higher depreciation of Navita units and greater costs from proactive investment actually increased the segment's burden and became factors behind the decline in segment profit. - FY2022RestatedAnnual report
「The Company seeks to limit cost increases by considering the market potential of each installation site, optimising installation costs and making proposals to sponsors. However, if higher costs lead to increases in sponsors' display fees, resulting in the loss of sponsors or lower contract renewal rates in the Navita business」
Describes the risk of higher materials and maintenance costs from conversion to digital signage and loss of sponsors, while also presenting installation-cost optimisation as a mitigation measure. - FY2021First statedAnnual report
「Converting to digital signage increases the amount of information that can be displayed, improving user convenience and customer satisfaction, but also increases costs such as materials and maintenance.」
Describes the improved convenience from digitalisation alongside higher materials and maintenance costs, and the risk of losing sponsors and lower contract renewal rates due to higher fees.