Competition and Investment Recovery Risks in the Sports Club Business
First written in FY2016. 9 of 25 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026.
Nippon Television Holdings moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 10 of 27 companies on the "Worse" side.
26 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Because the company expected it to be difficult to recover the investment in its operating assets due to declining profitability, it reduced their carrying amount to the recoverable amount and recorded the reduction as an impairment loss under extraordinary losses.」
Impairment losses of ¥3,249 million on operating assets arose at Tipness following the failure to achieve membership targets and the decision to close certain locations. - FY2026-H1WorsenedAnnual report
「Revenue from the Wellness business increased by ¥516 million, or 3.9%, from the same period of the previous year to ¥13,657 million, including intersegment internal revenue or transfers, due mainly to higher monthly and kids' membership fee revenue.」
Although revenue increased, segment profit or loss was a loss of ¥415 million, indicating that challenges remain in restoring profitability in the Wellness business. - FY2025WorsenedAnnual report
「In particular, it has recently been taking time to recover the membership numbers that declined during the COVID-19 pandemic.」
The Lifestyle and Health-related business secured higher revenue, but operating profit declined 65.2%, explicitly identifying the time required to recover membership numbers as a risk. - FY2025-H1WorsenedAnnual report
「Revenue from the Lifestyle and Health-related business, which primarily earns facility usage fees from sports club operations, decreased by ¥91 million, or 0.7%, from the same period of the previous year to ¥13,140 million, including intersegment internal revenue or transfers, due mainly to a slight decline in monthly membership fee revenue.」
Revenue from the Lifestyle and Health-related business decreased 0.7% year on year due mainly to a slight decline in monthly membership fee revenue, and segment profit or loss was a loss of ¥189 million. - FY2024MitigatedAnnual report
「Revenue from the Lifestyle and Health-related business increased by ¥403 million, or 1.6%, from the previous consolidated fiscal year to ¥26,456 million, including intersegment internal revenue or transfers, due mainly to higher kids' membership fee revenue, and operating profit was ¥538 million, compared with an operating loss of ¥438 million in the previous consolidated fiscal year.」
The Lifestyle and Health-related business, including Tipness, turned to operating profit while pursuing measures to restore membership numbers and other initiatives. - FY2024-Q3MitigatedAnnual report
「Segment profit or loss (△) 879」
The Lifestyle and Health-related business recorded segment profit of ¥879 million for the 3 quarters ended, turning profitable from a loss of ¥32 million in the same period of the previous year. - FY2024-Q2MitigatedAnnual report
「Revenue from the Lifestyle and Health-related business, which primarily earns facility usage fees from sports club operations, increased by ¥199 million, or 1.5%, from the same quarter of the previous year to ¥13,231 million, including intersegment internal revenue or transfers, due mainly to higher kids' membership fee revenue.」
The Lifestyle and Health-related business reported higher revenue, and segment profit also turned positive, from a loss of ¥182 million in the same period of the previous year to profit of ¥426 million. - FY2023-Q3MitigatedAnnual report
「Revenue from the lifestyle and wellness business, which primarily consists of facility usage fees from sports club operations, increased by ¥2,555 million, or 15.0%, from the same quarter of the previous year to ¥19,559 million, including intersegment sales or transfers, reflecting the recovery from sports club closures at some locations in Tokyo and the Kansai region following the declaration of a state of emergency in the same quarter of the previous year.」
Revenue from the Lifestyle and Health-related business increased as operations recovered from the impact of closures, while the segment loss narrowed from ¥2,195 million in the same period of the previous year to ¥32 million. - FY2023-Q2MitigatedAnnual report
「Revenue from the lifestyle and wellness business increased by ¥2,306 million, or 21.5%, from the same quarter of the previous year to ¥13,032 million, including intersegment sales or transfers, reflecting the rebound from the impact of sports club closures following the declaration of a state of emergency in the same quarter of the previous year at some locations in Tokyo and the Kansai region.」
The Lifestyle and Health-related business reported higher revenue due to a rebound from the impact of closures, recovering from the substantial decline caused by the COVID-19 pandemic reported in the same period of the previous year. - FY2023-Q1MitigatedAnnual report
「Revenue in the lifestyle and health-related business, which mainly earns facility usage fees from sports club operations, including intersegment sales and transfers, increased by ¥1,794 million, or 38.5%, year on year to ¥6,457 million, reflecting the rebound from the impact of sports club closures in Tokyo and parts of the Kansai region due to the state of emergency issued in the same quarter of the prior year.」
Revenue from the Lifestyle and Health-related business increased 38.5% year on year due to a rebound from the impact of sports club closures. - FY2022MitigatedAnnual report
「Although revenue in the lifestyle and health-related business was affected by COVID-19, the sports club closure requests issued under the state of emergency were limited to stores in Tokyo and parts of the Kansai region during the current consolidated fiscal year, compared with all regions and stores in the previous consolidated fiscal year. Closure periods were also shorter, allowing most stores to remain open. As a result, revenue, including intersegment sales and transfers, increased by ¥2,566 million, or 12.4%, year on year to ¥23,194 million, while the business posted an operating loss of ¥3,066 million.」
The lifestyle and health-related business recorded higher revenue, and its operating loss narrowed from ¥7,264 million in the prior year to ¥3,066 million. - FY2022-Q3MitigatedAnnual report
「Although revenue in the lifestyle and health-related business, which mainly earns facility usage fees from sports club operations, was affected by COVID-19, the sports club closure requests issued under the state of emergency were limited to stores in Tokyo and parts of the Kansai region during the cumulative third quarter of the current consolidated fiscal year, compared with all regions and stores in the same quarter of the prior year. Closure periods were also shorter, allowing most stores to remain open. As a result, revenue, including intersegment sales and transfers, increased by ¥2,191 million, or 14.8%, year on year to ¥17,003 million.」
The locations subject to closure requests and the closure periods were more limited than in the prior-year period, resulting in a 14.8% year-on-year increase in revenue in the lifestyle and health-related business. - FY2022-Q2MitigatedAnnual report
「Although revenue in the lifestyle and health-related business was affected by COVID-19, the sports club closure requests issued under the state of emergency were limited to stores in Tokyo and parts of the Kansai region during the cumulative second quarter of the current consolidated fiscal year, compared with all regions and stores in the same quarter of the prior year. Closure periods were also shorter, allowing most stores to remain open. As a result, revenue, including intersegment sales and transfers, increased by ¥2,381 million, or 28.5%, year on year to ¥10,725 million.」
The locations subject to closure requests and the closure periods were more limited than in the prior-year period, resulting in a 28.5% year-on-year increase in revenue in the lifestyle and health-related business. - FY2021MaterialisedAnnual report
「Revenue in the lifestyle and health-related business decreased by ¥15,277 million, or 42.5%, year on year to ¥20,628 million due to the impact of sports club closures during the COVID-19 pandemic and a substantial decline in membership. The business posted an operating loss of ¥7,264 million, compared with an operating loss of ¥686 million in the previous consolidated fiscal year.」
The deterioration in earnings due to declining membership and club closures became apparent for the full year, with revenue down 42.5% and the operating loss widening to ¥7,264 million. - FY2021-Q3RestatedAnnual report
「At Tipness Co., Ltd., a consolidated subsidiary of the Company that operates full-service sports clubs, membership acquisition has not progressed as initially planned due to the spread of COVID-19. Following a review of the business plan, the company determined that recovering the investment in fixed assets, including goodwill, would be difficult and recorded an impairment loss for the second quarter of the current consolidated fiscal year.」
The third-quarter disclosure reiterates the membership shortfall at Tipness, difficulty recovering the investment and the recording of an impairment loss as risk information. - FY2021-Q2MaterialisedAnnual report
「At Tipness Co., Ltd., a consolidated subsidiary of the Company that operates full-service sports clubs, membership acquisition has not progressed as initially planned due to the spread of COVID-19. Following a review of the business plan, the company determined that recovering the investment in fixed assets, including goodwill, would be difficult and recorded an impairment loss for the cumulative second quarter of the current consolidated fiscal year.」
Following a membership shortfall and a review of the business plan due to the COVID-19 pandemic, difficulty recovering the investment in Tipness's fixed assets, including goodwill, actually materialised and an impairment loss was recorded. - FY2021-Q1WorsenedAnnual report
「Revenue in the lifestyle and health-related business, which mainly earns facility usage fees from sports club operations, including intersegment sales and transfers, decreased by ¥7,184 million, or 77.7%, year on year to ¥2,056 million due to the closure of sports clubs during the COVID-19 pandemic.」
Revenue in the lifestyle and health-related business fell 77.7% year on year due to sports club closures during the COVID-19 pandemic. - FY2020WorsenedAnnual report
「Revenue in the lifestyle and health-related business decreased by ¥1,878 million, or 5.0%, year on year to ¥35,905 million, mainly due to an increase in members on suspension resulting from the spread of COVID-19. The business posted an operating loss of ¥686 million, compared with operating profit of ¥779 million in the previous consolidated fiscal year.」
Revenue in the lifestyle and health-related business declined due to the increase in members on suspension, and the business moved from operating profit to operating loss. - FY2020-Q3WorsenedAnnual report
「Revenue in the lifestyle and health-related business, which mainly earns facility usage fees from sports club operations, including intersegment sales and transfers, decreased by ¥739 million, or 2.6%, year on year to ¥27,846 million. This reflected an increase in members at 24-hour training gyms as the number of locations grew, offset by a decline in members at full-service sports clubs equipped with gyms, studios and other facilities.」
Membership increased at the 24-hour gyms, while membership at full-service sports clubs continued to decline, and revenue in the lifestyle and health-related business fell 2.6% year on year. - FY2020-Q2RestatedAnnual report
「Despite an increase in members as the number of 24-hour training gym locations grew, membership at full-service sports clubs equipped with gyms, studios and other facilities declined. As a result, revenue in the lifestyle and health-related business, including intersegment sales and transfers, decreased by ¥365 million, or 1.9%, year on year to ¥18,650 million.」
Membership increased at the 24-hour gyms while declining at full-service sports clubs, and revenue in the lifestyle and health-related business fell 1.9% year on year. - FY2020-Q1WorsenedAnnual report
「Despite an increase in members as the number of 24-hour training gym locations grew, membership at full-service sports clubs equipped with gyms, studios and other facilities declined. As a result, revenue in the lifestyle and health-related business, including intersegment sales and transfers, decreased by ¥202 million, or 2.1%, year on year to ¥9,240 million.」
Membership increased at the 24-hour gyms, while membership declined at full-service sports clubs, resulting in a 2.1% year-on-year decline in revenue in the lifestyle and health-related business. - FY2017RestatedAnnual report
「If the company is unable to secure members as planned due to competition from peers and other sports-related services, or if average prices decline due to price competition, it may be unable to generate stable earnings.」
The disclosure reiterates the risks related to competition, member acquisition, pricing, investment recovery and goodwill impairment in the lifestyle and health-related business. - FY2016First statedAnnual report
「If the company is unable to secure members as planned due to competition from peers and other sports-related services, or if average prices decline due to price competition, it may be unable to generate stable earnings.」
For the lifestyle and health-related business centred on Tipness, the disclosure identifies risks related to member acquisition, pricing, recovery of invested capital and goodwill impairment.