Rehabilitation of a Loss-Making Operating Company
First written in FY2019. 19 of 30 entries say "Advanced", first in FY2020. Latest entry: 2026-10-22.
No other company in this theme has enough history to compare yet.
- FY2026AdvancedAnnual report
「In the Software and Network Business, relatively firm performance in the solutions and contract development businesses, together with the effects of cost reductions, resulted in net sales of ¥787 million, up 3.4% year on year, and segment income, or operating income, of ¥45 million, compared with a segment loss of ¥10 million in the previous fiscal year, resulting in higher sales and earnings.」
The Software and Network business, which had been subject to restructuring, turned profitable due to solid performance in the solutions and contracted development businesses and cost reductions. - FY2026-H1AdvancedAnnual report
「In the Software and Network business, performance remained solid, led by the solutions and contracted development businesses, resulting in revenue of ¥429 million (up 10.4% year on year) and segment profit (operating profit) of ¥35 million (39.6 times the figure for the same period of the previous year), representing higher revenue and earnings.」
The Software and Network business, which had been subject to the restructuring of a loss-making operating company, achieved higher revenue and earnings, led by the solutions and contracted development businesses, and posted segment profit of ¥35 million. Profitability expanded from segment profit of ¥0 million in the first half of the previous fiscal year. - FY2025WorsenedAnnual report
「In the software and network business, the proprietary game services business and other areas performed solidly, but lower engineer utilization and the burden of training costs for new engineers resulted in revenue of ¥762 million, down 7.9% from the previous fiscal year, and a segment loss (operating loss) of ¥10 million, compared with segment profit of ¥95 million in the previous fiscal year.」
While the restructuring of loss-making operating companies remained a key issue, the Software and Network business swung from a profit of ¥95 million in the previous fiscal year to a loss of ¥10 million. The Corporate Services business also posted a loss of ¥26 million. - FY2025-H1WorsenedAnnual report
「In the software and network business, the proprietary game services and content businesses performed solidly, but weak solutions business revenue and the burden of training engineers reduced revenue to ¥389 million, down 8.4% year on year, while segment profit (operating profit) was ¥0 million, down 98.4% year on year.」
The Software and Network business, which had been subject to restructuring, remained profitable, but segment profit declined from ¥55 million in the same period of the previous year to ¥0 million. The solid performance of its key businesses coexisted with a substantial decline in profitability. - FY2024Maintained profitability, but development discontinued and impairment recordedAnnual report
「Because the Company decided to discontinue development of software under development in the Software and Network business after determining that the business was unlikely to become profitable, the book value of the assets used in that business was reduced to their recoverable amount, and the reduction was recorded as an impairment loss under extraordinary losses.」
The Software and Network business remained profitable for the full year, but discontinued software under development for which profitability was not expected and recorded an impairment loss of ¥18 million. - FY2024-Q3RestatedAnnual report
「In the software and network business, proprietary game and application services, contract development, and the content business remained solid throughout the period, resulting in revenue of ¥627 million, up 2.8% year on year. However, segment profit (operating profit) was ¥80 million, down 13.6% year on year, due to higher hiring costs as upfront investment, among other factors.」
The Software and Network business, which had been subject to restructuring, maintained higher revenue and profitability due to the solid performance of its key businesses, but earnings declined year on year due to upfront investment including higher hiring costs. - FY2024-Q2Core businesses remained solid, but higher hiring costs reduced profitAnnual report
「In the software and network business, major businesses, including proprietary game and application services, contract development, content, and solutions, generally performed steadily, resulting in revenue of ¥424 million, up 3.8% year on year. However, segment profit (operating profit) was ¥55 million, down 13.4% year on year, due to higher hiring costs as upfront investment, among other factors.」
The Software and Network business, which had been subject to restructuring, maintained higher revenue and profitability due to the solid performance of its key businesses, but earnings declined year on year due to higher hiring costs and other upfront investment. - FY2024-Q1AdvancedAnnual report
「In the Software and Network business, key businesses including in-house game and app services, contracted development, content and solutions generally performed well, resulting in revenue of ¥214 million (up 3.3% year on year) and segment profit (operating profit) of ¥29 million (up 3.5%), representing higher revenue and earnings.」
The Software and Network business, which had been subject to restructuring, maintained higher revenue and profitability as its key businesses, including in-house services and contracted development, content and solutions, generally performed well. - FY2023AdvancedAnnual report
「In the software and network business, revenue from contract development of games and applications, game content, and other businesses remained strong throughout the period, while revenue from the solutions business weakened from the second quarter of the consolidated fiscal year onward. As a result, revenue was ¥810 million, down 1.4% from the previous fiscal year, but segment profit (operating profit) was ¥114 million, up 15.8%, due to improved profitability across the businesses.」
The Software and Network business, which had been subject to restructuring, increased segment profit from ¥98 million to ¥114 million due to improved profitability across its businesses, despite lower revenue caused by weakness in the solutions business. - 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.」
The Software and Network business, which had been subject to the restructuring of a loss-making operating company, maintained higher earnings despite lower revenue due to fewer deliveries in the solutions business, supported by improved profitability in new businesses. - 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 Software and Network business, which had been subject to restructuring, increased profit 40.7% year on year despite soft sales in the solutions business, due to factors including the establishment of profitability in new businesses. - 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.」
The Software and Network business, which had been subject to restructuring, maintained higher revenue and earnings year on year due to improved profitability in new businesses and strong performance in its key businesses. - FY2022AdvancedAnnual report
「In the Software and Network business, revenue was ¥822 million (up 10.7% year on year) and segment profit (operating profit) was ¥98 million (up 134.4%), mainly because key businesses, including contracted game and app development, game content sales and the solutions business, maintained solid performance throughout the period.」
The Software and Network business, which had been subject to restructuring, generated full-year revenue of ¥822 million and segment profit of ¥98 million due to the steady performance of its key businesses, representing a substantial increase in profit from the previous fiscal year. - 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.」
Regarding the restructuring of loss-making operating companies, profit in the Software and Network business increased from ¥25 million in the same period of the previous year to ¥75 million, driven by strong performance in contracted game and app development, existing game content and the solutions business. - 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.」
Regarding the restructuring of loss-making operating companies, the Software and Network business increased profit from ¥11 million in the same period of the previous year to ¥45 million, driven by strong performance in contracted game and app development, existing game content and the solutions business. - 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.」
The Software and Network business turned from a loss of ¥1 million in the same period of the previous year to a profit of ¥24 million, driven by strong performance in contracted game and app development, existing game content and the solutions business. - FY2021AdvancedAnnual report
「In the Software and Network business, existing businesses, including sales of existing content, remained stable throughout the period, while the profitability of new businesses gradually improved. As a result, revenue was ¥742 million (up 1.5% year on year) and segment profit (operating profit) was ¥42 million, compared with a segment loss of ¥105 million in the previous fiscal year.」
Regarding the restructuring of loss-making operating companies, the Software and Network business turned from a loss of ¥105 million to a profit of ¥42 million due to improved profitability in new businesses and stability in existing businesses. - 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.」
Regarding the restructuring of loss-making operating companies, the Software and Network business turned profitable, posting a profit of ¥25 million, due to improved profitability in new businesses and steady sales of existing content. - 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.」
Regarding the restructuring of loss-making operating companies, the Software and Network business turned profitable, posting a profit of ¥11 million, due to improved profitability in new businesses and steady sales of existing game content. - FY2021-Q1AdvancedAnnual 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 loss in the Software and Network business narrowed from ¥33 million in the same period of the previous year to ¥1 million. However, the business did not become profitable, partly due to the impact of game arcade closures caused by infectious diseases. - FY2020AdvancedAnnual report
「In the Software and Network business, upfront investment costs associated with launching multiple new businesses and other factors resulted in revenue of ¥731 million (down 11.0% year on year) and a segment loss (operating loss) of ¥105 million, compared with segment profit of ¥13 million in the previous fiscal year. However, the Company discontinued unprofitable businesses during the third quarter of the fiscal year, and performance began to recover in the fourth quarter.」
Although the loss widened, the Company explained that it discontinued unprofitable businesses in the third quarter and shifted to a recovery trend in the fourth quarter, indicating that restructuring measures have progressed to the implementation stage. - FY2020-Q3WorsenedAnnual 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.」
While the restructuring of loss-making operating companies remains an issue, the Software and Network business swung from a profit of ¥3 million in the same period of the previous year to a loss of ¥109 million. The burden of upfront investment in launching multiple new businesses has continued. - FY2020-Q2WorsenedAnnual 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.」
While the restructuring of loss-making operating companies remains an issue, the loss in the Software and Network business widened from ¥8 million in the same period of the previous year to ¥78 million due to the burden of upfront investment in launching multiple new businesses. - FY2020-Q1Widening losses amid increased upfront investmentAnnual 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.」
Although upfront investment in launching new businesses increased, the loss in the Software and Network business widened from ¥9 million in the same period of the previous year to ¥33 million. - FY2019First statedAnnual report
「Rehabilitation of a Loss-Making Operating Company」
The restructuring of loss-making operating companies was identified for the first time as one of the key issues at the beginning of the period for achieving medium- to long-term growth.