Declining profitability of call center services and impairment loss on fixed assets
First written in FY2024-Q2. 5 of 6 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026WorsenedAnnual report
「In the incubation business, the company is promoting the development and cultivation of businesses and services that will create a new core business and enhance the added value of existing businesses. In the consolidated fiscal year, it focused on developing the management support business, a support service for companies that manage homes. Revenue was ¥186 million, down 2.7% year on year, and the operating loss was ¥29 million, compared with an operating loss of ¥21 million in the previous year.」
While continuing to develop the incubation business, the operating loss for the business as a whole widened from ¥21 million to ¥29 million. - FY2025WorsenedAnnual report
「From the fiscal year ending June 2025, the call center service has shifted its operating structure to outsourcing.」
As the Company shifted to a growth strategy without an internally operated call center, the number of users fell to 0, and the incubation business recorded revenue of ¥191 million and an operating loss of ¥21 million. - FY2025-H1WorsenedAnnual report
「During the period, transactions in the call center service declined as the Company began rebuilding its growth strategy without an internally operated call center. Revenue was ¥93 million, down 46.7% year on year, and the operating loss was ¥7 million, compared with operating income of ¥4 million in the same period of the previous year.」
The call center service experienced a decline in transactions as the Company rebuilt its growth strategy without assuming in-house operations, resulting in lower revenue and an operating loss. - FY2024WorsenedAnnual report
「Fiscal year under review (1 July 2023 to 30 June 2024) Shinjuku-ku, Tokyo Call center service Software under development ¥54.258 million」
Against the backdrop of the cancellation by a major call center service customer and declining profitability, an impairment loss of ¥54.258 million was recognized on software under development and other assets. In addition, an impairment loss of ¥31.619 million was incurred in the monitoring service, bringing total impairment losses on fixed assets in the incubation business to ¥86.634 million. - FY2024-Q3WorsenedAnnual report
「In the incubation business, the company is focusing on developing several services to create a new core business. However, a major customer cancelled the 24-hour call centre service during the second quarter. As a result, revenue was ¥227 million, down 28.5% year on year, and operating profit was ¥0 million, down 95.5%.」
The impact of the cancellation by a major call center service customer continued through the cumulative third quarter, with revenue from the incubation business down 28.5% and operating income down 95.5%. The ¥55.013 million impairment loss on fixed assets recognized in the second quarter was also related to the decline in profitability of this service. - FY2024-Q2MaterialisedAnnual report
「In the call centre services of the incubation business, the company reduced the carrying amount of business-use assets to their recoverable amount because the investment was no longer expected to be recovered due to declining profitability, and recorded an impairment loss of ¥55,013 thousand.」
Due to customer cancellations and declining profitability in the call center service, an impairment loss on fixed assets of ¥55.013 million, including software under development, was recognized.