Temporary Cost Increases in Contract Development
First written in FY2017-Q3. 1 of 2 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2018-Q3.
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2018-Q3MitigatedAnnual report
「In the software and network business, paid content revenue declined due to reduced advertising expenses, but the effects of restructuring implemented in the previous consolidated fiscal year and the reversal of the temporary increase in contract development costs in the year-earlier period resulted in a substantial improvement in profit. Revenue was ¥708 million, down 22.3% year on year, while segment profit (operating profit) was ¥54 million, compared with a segment loss of ¥127 million in the year-earlier period.」
The business improved from a ¥127 million loss in the year-earlier period to profit of ¥54 million due to the reversal of the temporary increase in contract development costs incurred in the year-earlier period and the effects of restructuring. - FY2017-Q3MaterialisedAnnual report
「In the Software and Network business, smartphone content business performance remained stable. However, temporary cost increases in contract development and other factors resulted in net sales of ¥912 million, down 12.0% year on year, and a segment loss (operating loss) of ¥127 million, compared with segment profit of ¥184 million in the same period of the previous year.」
A temporary increase in contract development costs actually occurred, and the software and network business shifted from profit of ¥127 million in the year-earlier period to a loss of ¥127 million.