Business Expansion through New Businesses, Strategic Investments and M&A
First written in FY2017. 11 of 24 entries say "Advanced", first in FY2019-Q1. Latest entry: 2026-10-22.
46 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「To address the risk of obsolescence in the businesses held within the Group, the Group is continually working to create new earnings foundations. At present, the level of creation remains insufficient, and we recognize that results from a medium- to long-term perspective will be necessary going forward.」
The company continues to treat the creation of new earnings foundations as a key issue and reiterated its recognition that the level of creation remains insufficient and that medium- to long-term results are necessary. - FY2023SoftenedAnnual report
「To address the risk of obsolescence in the businesses held within the Group, the Group is continually working to create new earnings foundations. At present, the level of creation remains insufficient, and we recognize that results from a medium- to long-term perspective will be necessary going forward.」
While short-term profitability improvements were demonstrated for new businesses and new earnings foundations, the level of creation of those earnings foundations remains insufficient, and the company recognizes that medium- to long-term results are necessary. - FY2023-Q3AdvancedAnnual report
「In the software and network business, revenue from contract development of games and applications, game content, and other businesses continued to perform well, while deliveries related to the solutions business and other areas declined, resulting in revenue of ¥610 million, down 3.1% year on year. However, segment profit (operating profit) was ¥92 million, up 23.2% year on year, due to improvements including the profitability of new businesses.」
Profitability improvements in new businesses continued, and, together with strong performance in contracted game and app development and game content, segment profit increased 23.2% year on year. Short-term results from creating new earnings foundations have continued. - FY2023-Q2AdvancedAnnual report
「In the software and network business, revenue from contract development of games and applications, game content, and other businesses continued to perform well, while revenue from the solutions business and other areas weakened in the latter half of the period. As a result, revenue was ¥409 million, down 6.6% year on year, but segment profit (operating profit) was ¥63 million, up 40.7% year on year, mainly due to improved business profitability, including the establishment of profitability in new businesses.」
The company demonstrated tangible progress in establishing sustained profitability in its new businesses, and Software and Network segment profit increased 40.7% year on year. - FY2023-Q1AdvancedAnnual report
「In the software and network business, major businesses, including contract development of games and applications, game content, and solutions, continued to perform well, while improved profitability in new businesses also contributed. Revenue was ¥208 million, up 1.7% year on year, and segment profit (operating profit) was ¥28 million, up 16.0% year on year, resulting in higher revenue and profit.」
Improved profitability in new businesses, together with strong performance in contracted game and app development, game content, and the solutions business, led to increases in both revenue and profit. Short-term results from creating new earnings foundations have continued. - FY2022Short-term results and medium- to long-term challenges presented togetherAnnual report
「To address the risk of obsolescence in the businesses held within the Group, the Group is continually working to create new earnings foundations. Although there have been results in the short term, we recognize that results from a medium- to long-term perspective will be necessary going forward.」
While recognizing short-term results from the creation of new earnings foundations, the Group regards achieving medium- to long-term results as an issue for the future. - FY2022-Q3AdvancedAnnual report
「In the Software and Network segment, sales rose 14.1% year on year to ¥629 million and segment profit (operating profit) increased 196.2% to ¥75 million, primarily because contracted game and app development, sales of existing game content, and the solutions business continued to perform well from the beginning of the period.」
Strong performance in contracted game and app development, existing game content, and the solutions business increased Software and Network segment profit from ¥25 million in the same period of the previous year to ¥75 million. - FY2022-Q2AdvancedAnnual report
「In the Software and Network segment, sales rose 22.1% year on year to ¥438 million and segment profit (operating profit) increased 297.4% to ¥45 million, primarily because contracted game and app development, sales of existing game content, and the solutions business continued to perform well from the beginning of the period.」
Strong performance in contracted game and app development, existing game content, and the solutions business increased Software and Network segment profit from ¥11 million in the same period of the previous year to ¥45 million. - FY2022-Q1AdvancedAnnual report
「In the Software and Network segment, sales rose 29.9% year on year to ¥204 million and segment profit (operating profit) was ¥24 million, versus a segment loss of ¥1 million in the same period of the previous year. This increase in both revenue and profit was primarily driven by strong performance in contracted game and app development, sales of existing game content, and the solutions business.」
Strong performance in contracted game and app development, existing game content, and the solutions business enabled the Software and Network segment to turn a ¥1 million loss in the same period of the previous year into ¥24 million of profit. - FY2021AdvancedAnnual report
「The company is also pursuing growth opportunities through business diversification, including expansion into the online matchmaking services market, where demand increased amid social uncertainty caused by the spread of COVID-19 and which was reported to have reached ¥76.8 billion in 2021, including dating services, up 23% year on year (Tapple Inc., announced January 2021).」
Expansion into the online matchmaking services market was cited as a specific example of creating new sources of revenue and diversifying the business. - FY2021-Q3AdvancedAnnual report
「In the Software and Network business, improving profitability in new businesses and steady revenue from existing content resulted in net sales of ¥551 million, up 3.3% year on year, and segment profit (operating profit) of ¥25 million, compared with a segment loss of ¥109 million in the same period of the previous year.」
Improving profitability in new businesses and steady revenue from existing content enabled the Software and Network business to move from a ¥109 million loss in the same period of the previous year to ¥25 million in profit. - FY2021-Q2AdvancedAnnual report
「In the Software and Network business, despite the impact of COVID-19 on store sales and other revenue, improving profitability in new businesses and steady revenue from existing game content resulted in net sales of ¥358 million, up 0.2% year on year, and segment profit (operating profit) of ¥11 million, compared with a segment loss of ¥78 million in the same period of the previous year.」
Improving profitability in new businesses and steady revenue from existing game content enabled the business to move from a loss in the same period of the previous year to profitability. - FY2021-Q1Upfront investment in new businesses subsided, while revenue from existing games increasedAnnual report
「In the Software and Network business, upfront investment to launch new businesses subsided and revenue from existing game content increased. However, the temporary closure of arcades and other effects of the spread of COVID-19 resulted in net sales of ¥157 million, down 8.0% year on year, and a segment loss (operating loss) of ¥1 million, compared with a segment loss of ¥33 million in the same period of the previous year.」
The company explained that upfront investment to launch new businesses had subsided and revenue from existing game content had increased. However, the business still posted a small loss because of the temporary closure of arcades and other factors. - FY2020ReframedAnnual report
「② Creating new sources of revenue: To address the risk that the businesses held within the Group may become obsolete, the Group will continuously strive to create new sources of revenue.」
In addition to the previous description of expansion through growth in existing businesses, new businesses, strategic investments and M&A, the company explicitly identified “creating new sources of revenue” as a key issue in response to the risk of obsolescence in its existing businesses. - FY2020-Q3RestatedAnnual report
「In the Software and Network business, upfront investment costs for launching multiple new businesses and other factors resulted in net sales of ¥534 million, down 13.8% year on year, and a segment loss (operating loss) of ¥109 million, compared with segment profit of ¥3 million in the same period of the previous year. During the third-quarter consolidated accounting period, the company intensively reviewed its businesses, including by exiting unprofitable businesses.」
The company stated that it continued to make upfront investments in launching multiple new businesses. The investment burden coexisted with a review of the businesses, including withdrawal from unprofitable businesses. - FY2020-Q2RaisedAnnual report
「In the Software and Network business, upfront investment costs for launching multiple new businesses and other factors resulted in net sales of ¥357 million, down 11.4% year on year, and a segment loss (operating loss) of ¥78 million, compared with a segment loss of ¥8 million in the same period of the previous year.」
For the launch of new businesses, the company made upfront investments in “multiple new businesses” rather than a single new business, explicitly broadening the scope of its business-expansion initiatives. However, the business posted a loss of ¥78 million because of the investment burden. - FY2020-Q1RaisedAnnual report
「In the Software and Network business, the decline in existing paid-content revenue due to reduced advertising expenses and more aggressive upfront investment than before to launch new businesses resulted in net sales of ¥171 million, down 13.7% year on year, and a segment loss (operating loss) of ¥33 million, compared with a segment loss of ¥9 million in the same period of the previous year.」
The company made upfront investment to launch new businesses “more aggressively than before,” increasing the investment intensity of its business-expansion initiatives. - FY2019-Q3AdvancedAnnual report
「In the Software and Network business, the impact of lower paid-content sales due to reduced advertising expenditure continued. However, the benefits of upfront investments in new businesses and additional staff gradually began to emerge, resulting in net sales of ¥619 million, down 12.6% year on year, and segment profit (operating profit) of ¥3 million, down 93.2%, marking a return to profitability and a recovery trend in performance.」
The effects of upfront investment, including efforts to launch new businesses and increase staff, gradually emerged, and the Software and Network business moved into the black. - FY2019-Q2RestatedAnnual report
「In the Software and Network business, the decline in paid-content revenue due to reduced advertising expenses and upfront investment to launch new businesses resulted in net sales of ¥404 million, down 16.3% year on year, and a segment loss (operating loss) of ¥8 million, compared with segment profit of ¥42 million in the same period of the previous year.」
Continued upfront investment to launch new businesses was identified as a performance factor in the Software and Network business. - FY2019-Q1AdvancedAnnual report
「In the Software and Network business, the decline in paid-content revenue due to reduced advertising expenses and upfront investment to launch new businesses resulted in net sales of ¥198 million, down 19.0% year on year, and a segment loss (operating loss) of ¥9 million, compared with segment profit of ¥25 million in the same period of the previous year.」
The upfront investment to launch new businesses was specifically identified as a performance factor in the Software and Network business. - FY2017First statedAnnual report
「In addition to growing existing businesses, the Group will actively develop new businesses and, as necessary, actively pursue strategic investments in and development of companies, as well as M&A, to expand its businesses and enhance the overall value of the Group.」
The company first presented separately a medium- to long-term strategy of expanding its businesses through new businesses, strategic investments, corporate development and M&A, in addition to growth in existing businesses.