C2’s reduction in advertising investment and impairment of acquisition-related assets
First written in FY2024-Q2. 1 of 2 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2024-Q3.
The whole theme swung hardest in 2023: 8 of 15 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2024-Q3RestatedAnnual report
「Following the acquisition, the number of paid users of “Deep Sleep Alarm” doubled to more than 30,000 through aggressive advertising investment. However, after reviewing C2’s management policy in light of the cost-effectiveness of its advertising investment and its impact on our consolidated results, we decided to operate with reduced advertising investment in order to prioritize improving operating income. Based on this decision, we reduced the assets to their recoverable amount because the future earnings initially assumed at the time of the acquisition could no longer be expected.」
While the number of paid users at C2 doubled to more than 30,000, it reaffirmed the recognition of an impairment loss of ¥660 million due to the decline in future earnings initially assumed at the time of the acquisition, in line with the policy of reducing advertising investment. - FY2024-Q2MaterialisedAnnual report
「However, after reviewing C2’s management policy in light of the cost-effectiveness of its advertising investment and its impact on our consolidated results, we decided to operate with reduced advertising investment in order to prioritize improving operating income. Based on this decision, we reduced the assets to their recoverable amount because the future earnings initially assumed at the time of the acquisition could no longer be expected.」
It states that C2 decided to reduce its advertising investment and, because the future earnings initially assumed at the time of the acquisition could no longer be expected, recognized an impairment loss of ¥660 million, including ¥643 million in goodwill and ¥17 million in intangible assets.