All operating companies turn profitable

「In the Corporate Services business, net sales were ¥670 million, down 20.2% year on year, and the segment posted a loss (operating loss) of ¥4 million, an improvement of ¥22 million year on year, due mainly to efforts to substantially restructure and streamline the business and the resulting higher restructuring costs. In the Software and Network business, the solutions and contract development businesses remained relatively firm, while cost reductions also contributed to net sales of ¥787 million, up 3.4% year on year, and segment profit (operating profit) of ¥45 million, compared with a segment loss of ¥10 million in the previous fiscal year. The business therefore recorded higher sales and profit.」

「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.」

「In the Corporate Services business, net sales were ¥304 million, down 13.6% year on year, and the segment posted a loss (operating loss) of ¥22 million, an improvement of ¥1 million year on year, mainly because the decline in orders from existing clients continued. In the Software and Network business, performance remained firm, particularly in the solutions and contract development businesses, resulting in net sales of ¥429 million, up 10.4% year on year, and segment profit (operating profit) of ¥35 million, 39.6 times the year-earlier level. The business therefore recorded higher sales and profit.」

「In the Corporate Services business, mainly due to a decline in orders from existing clients, net sales were ¥840 million, down 15.6% year on year, and the segment loss (operating loss) was ¥26 million, compared with segment profit of ¥82 million in the previous fiscal year.」

「In the Corporate Services business, mainly due to a decline in orders from existing clients, net sales were ¥351 million, down 21.9% year on year, and the segment loss (operating loss) was ¥23 million, compared with segment profit of ¥27 million in the same period of the previous year.」

「The operating performance of each segment was as follows.」

「In the Publishing business, book sales, which had been weak at the beginning of the period due to slowing consumption and other factors, showed signs of recovery, and e-book sales remained steady. However, weak advertising revenue from web media and higher costs resulted in net sales of ¥3,011 million, down 3.6% year on year, and segment profit (operating profit) of ¥608 million, down 29.6%.」

「In the Corporate Services business, the effects of strengthening the sales organization and developing human resources, among other measures, resulted in net sales of ¥153 million, up 11.4% year on year, and segment profit (operating profit) of ¥3 million, compared with a segment loss of ¥13 million in the same period of the previous year.」

「The operating performance of each segment was as follows.」

「Segment profit (operating profit): ¥864 million, ¥27 million, ¥92 million, ¥218 million, ¥171 million」

「In the Publishing business, sales from web media and events remained strong throughout the period. However, book sales were affected in the middle of the period by changes in consumer trends resulting from higher prices and the end of the COVID-19 pandemic, while the business also faced the reversal of special demand for e-book sales in the same period of the previous year. Net sales were ¥2,094 million, down 2.4% year on year, and segment profit (operating profit) was ¥561 million, down 12.7%. In the Corporate Services business, orders, mainly from existing customers, increased, but higher marketing expenses and other factors resulted in net sales of ¥396 million, up 23.0% year on year, and segment profit (operating profit) of ¥9 million, down 36.3%. In the Software and Network business, sales from contract development of games and applications, game content, and other businesses continued to perform well, while solutions business sales and other areas weakened in the second half of the period. Net sales were ¥409 million, down 6.6% year on year, but segment profit (operating profit) was ¥63 million, up 40.7%, mainly due to improved business profitability, including the establishment of profitability in new businesses. In the Education and Human Resources business, both the IT human resources training business, centered on online training, and the medical-related staffing business generally performed well. Net sales were ¥492 million, up 13.6% year on year, and segment profit (operating profit) was ¥145 million, up 9.8%. In the Investment Management business, higher dividend income due mainly to a stable increase in investment and management balances and the depreciation of the yen resulted in net sales of ¥169 million, up 87.3% year on year, and segment profit (operating profit) of ¥136 million, up 91.1%.」

「In the Corporate Services business, although the number of inquiries for projects from new customers increased, orders from existing customers remained sluggish. Net sales were ¥137 million, down 7.3% year on year, and the segment loss (operating loss) was ¥13 million, compared with segment profit of ¥0 million in the same period of the previous year.」

「The operating performance of each segment was as follows, with all segments recording higher sales and profit.」

「The performance of each segment was as follows, with all segments recording higher sales and profit.」

「The performance of each segment was as follows, with all businesses recording higher sales and profit. In the Publishing business, sales of backlist books, web media, events, and e-books were strong throughout the period. Net sales were ¥2,146 million, up 20.0% year on year, and segment profit (operating profit) was ¥643 million, up 44.5%. In the Corporate Services business, the recovery trend from the second half of the previous consolidated fiscal year continued, and the company secured a certain volume of contracted projects, mainly from key customers. The effects of cost reductions also contributed to net sales of ¥322 million, up 19.7% year on year, and segment profit (operating profit) of ¥14 million, compared with a segment loss of ¥26 million in the same period of the previous year. In the Software and Network business, contract development of games and applications, sales of existing game content, and the solutions business continued to perform well from the beginning of the period. Net sales were ¥438 million, up 22.1% year on year, and segment profit (operating profit) was ¥45 million, up 297.4%. In the Education and Human Resources business, both the IT human resources training business, centered on online training, and the medical-related staffing business generally performed well. Net sales were ¥433 million, up 14.9% year on year, and segment profit (operating profit) was ¥132 million, up 78.5%. In the Investment Management business, dividend income increased due to higher investment and management balances in securities and increased dividends accompanying the economic recovery. The generally favorable business environment was also a major factor. Net sales were ¥90 million, up 30.4% year on year, and segment profit (operating profit) was ¥71 million, up 102.0%.」

「In the Publishing business, strong sales of backlist books, web media, events, and e-books were the main factors behind net sales of ¥1,024 million, up 38.6% year on year, and segment profit (operating profit) of ¥383 million, up 124.0%, representing higher sales and profit. The application of the revenue recognition accounting standard and related standards reduced net sales by ¥40 million and increased segment profit (operating profit) by ¥0 million. In the Corporate Services business, the recovery trend that began in the second half of the previous consolidated fiscal year continued, and the company secured sales from certain contracted production projects. Net sales were ¥148 million, up 39.6% year on year, and segment profit (operating profit) was ¥0 million, compared with a segment loss of ¥24 million in the same period of the previous year. In the Software and Network business, contract development of games and applications, sales of existing game content, and the solutions business performed well. Net sales were ¥204 million, up 29.9% year on year, and segment profit (operating profit) was ¥24 million, compared with a segment loss of ¥1 million in the same period of the previous year, representing higher sales and profit. In the Education and Human Resources business, the IT human resources training business continued to perform well, and the medical-related staffing business was generally steady. Net sales were ¥272 million, up 16.6% year on year, and segment profit (operating profit) was ¥98 million, up 73.4%, representing higher sales and profit. In the Investment Management business, dividend income increased as the amount invested in and managed through securities increased, while the business environment was generally favorable. Net sales were ¥52 million, up 25.5% year on year, and segment profit (operating profit) was ¥41 million, up 58.1%.」

「In the Publishing business, online book sales, web media, and e-book sales performed well throughout the period. In addition, operational efficiencies implemented in response to the COVID-19 environment resulted in net sales of ¥4,082 million, up 9.7% year on year, and segment profit (operating profit) of ¥976 million, up 41.0%, representing substantial increases in sales and profit. In the Corporate Services business, the decline in orders and delays in projects caused by the spread of COVID-19 had a significant impact during the second-quarter consolidated cumulative period. However, contracted projects gradually increased from the third-quarter consolidated accounting period onward, leading to a recovery in performance. Net sales were ¥681 million, down 24.4% year on year, and segment profit (operating profit) was ¥7 million, down 88.3%, marking a return to profitability for the full fiscal year. In the Software and Network business, existing businesses, including sales of existing content, remained stable throughout the period, while profitability in new businesses gradually improved. Net sales were ¥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. In the Education and Human Resources business, the IT human resources training business performed strongly throughout the period, and the promotion of online operations and other measures resulted in net sales of ¥679 million, up 19.9% year on year, and segment profit (operating profit) of ¥107 million, up 47.7%, representing substantial increases in sales and profit. In the Investment Management business, interest and dividend income increased as the amount invested in and managed through securities increased. In addition, the business environment was relatively favorable throughout the period, resulting in net sales of ¥131 million, up 12.9% year on year, and segment profit (operating profit) of ¥77 million, up 548.0%.」

「In the Corporate Services business, performance gradually recovered and the business was profitable during the third-quarter consolidated accounting period. However, it could not fully offset the decline in contracted projects during the first and second quarters caused by the spread of COVID-19. Net sales were ¥459 million, down 31.3% year on year, and the segment loss (operating loss) was ¥13 million, compared with segment profit of ¥58 million in the same period of the previous year.」

「In the Corporate Services business, performance was gradually recovering, but the effects of temporary suspensions and delays in contracted projects due to the spread of COVID-19 continued. Net sales were ¥269 million, down 36.9% year on year, and the segment loss (operating loss) was ¥26 million, compared with segment profit of ¥28 million in the same period of the previous year. In the Software and Network business, store sales and other areas were affected by COVID-19, but improving profitability in new businesses and steady sales of existing game content and other factors 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.」

「In the Publishing business, online book sales, web media, and e-book sales performed well. However, the temporary closure of bookstores due to the spread of COVID-19, planned publication schedules in light of market conditions, and other factors resulted in net sales of ¥738 million, down 12.1% year on year, and segment profit (operating profit) of ¥171 million, up 2.9%. In the Corporate Services business, the temporary suspension and delays in contracted projects, mainly due to the spread of COVID-19, resulted in net sales of ¥106 million, down 39.6% year on year, and a segment loss (operating loss) of ¥24 million, compared with segment profit of ¥6 million in the same period of the previous year. In the Software and Network business, upfront investments to launch new businesses had subsided, and sales of existing game content increased. However, the temporary closure of arcades due to the spread of COVID-19 and other factors 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.」

「In the Software and Network business, upfront investment costs for launching multiple new businesses and other factors resulted in net sales 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.」

「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.」

「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.」

「In the Corporate Services business, sales from new clients continued to increase from the previous consolidated fiscal year, while upfront investments, including marketing expenses to acquire new clients, had run their course. As a result, net sales were ¥176 million, up 6.3% year on year, and segment profit (operating profit) was ¥6 million, compared with a segment loss of ¥7 million in the same period of the previous year, marking a return to profitability. In the Software and Network business, the decline in existing paid-content sales due to reduced advertising expenditure and the more aggressive implementation of upfront investments 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.」

「In the Publishing business, the principal businesses, including in-store and online book sales, web media and events, and e-books, maintained and expanded their strong performance from the previous consolidated fiscal year. Net sales were ¥3,309 million, up 11.5% year on year, and segment profit (operating profit) was ¥524 million, up 16.1%, representing substantial increases in sales and profit. In the Corporate Services business, sales from new clients increased, but higher outsourcing costs and other factors resulted in net sales of ¥717 million, up 5.4% year on year, and segment profit (operating profit) of ¥24 million, down 27.8%, representing higher sales but lower profit. In the Software and Network business, lower paid-content sales due to reduced advertising expenditure and upfront investments in launching new businesses and expanding staff resulted in net sales of ¥821 million, down 10.6% year on year, and segment profit (operating profit) of ¥13 million, down 76.9%. In the Education and Human Resources business, the IT human resources training business performed generally well throughout the period, and the medical- and care-related staffing business was on a recovery trend. However, upfront investments to strengthen staffing resulted in net sales of ¥492 million, up 11.9% year on year, and segment profit (operating profit) of ¥51 million, down 9.2%, representing higher sales but lower profit. In the Investment Management business, interest and dividend income increased as the amount invested in and managed through securities increased. However, due partly to the reversal of the sale of some shares held in the market during the previous consolidated fiscal year, net sales were ¥100 million, down 16.2% year on year, and segment profit (operating profit) was ¥62 million, down 22.6%.」

「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.」

「In the Publishing business, the principal businesses, including book sales, web media and events, and e-books, maintained and expanded their strong performance from the previous consolidated fiscal year. Net sales were ¥1,447 million, up 9.9% year on year, and segment profit (operating profit) was ¥236 million, up 29.6%, representing higher sales and profit. In the Corporate Services business, increased sales from new clients during the second-quarter consolidated accounting period were the main factor behind a return to profitability. Net sales were ¥357 million, up 7.3% year on year, and segment profit (operating profit) was ¥16 million, up 9.6%, representing higher sales and profit. In the Software and Network business, the decline in paid-content sales due to reduced advertising expenditure and upfront investments 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. In the Education and Human Resources business, the IT human resources training business performed generally well throughout the period, and the medical-related staffing business was also on a recovery trend. However, upfront investments to strengthen staffing resulted in net sales of ¥251 million, up 9.9% year on year, and segment profit (operating profit) of ¥33 million, down 18.6%, representing higher sales but lower profit. In the Investment Management business, interest and dividend income increased as the amount invested in and managed through securities increased. Net sales were ¥52 million, up 27.7% year on year, and segment profit (operating profit) was ¥33 million, up 82.3%.」

「In the Corporate Services business, increased orders from new clients did not fully offset the decline in orders from existing clients. In addition, upfront investments, including marketing expenses to acquire new clients, resulted in net sales of ¥165 million, down 2.5% year on year, and a segment loss (operating loss) of ¥7 million, compared with segment profit of ¥7 million in the same period of the previous year. In the Software and Network business, the decline in paid-content sales due to reduced advertising expenditure and upfront investments 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.」

「In the Publishing business, over-the-counter sales of new and backlist books, media advertising, and online sales performed well. Net sales were ¥2,078 million, down 2.1% year on year, and segment profit (operating profit) was ¥329 million, down 16.2%, maintaining the strong performance seen since the previous year. In the Corporate Services business, inquiries from existing clients remained weak throughout the period, but the effects of lower outsourcing costs and other measures resulted in net sales of ¥534 million, down 9.8% year on year, and segment profit (operating profit) of ¥36 million, up 24.0%, representing lower sales but higher profit. In the Software and Network business, paid-content sales declined due to reduced advertising expenditure. However, the effects of restructuring carried out in the previous consolidated fiscal year and the reversal of temporary cost increases in contract development in the same period of the previous year resulted in net sales of ¥708 million, down 22.3% year on year, and segment profit (operating profit) of ¥54 million, compared with a segment loss of ¥127 million in the same period of the previous year, a substantial improvement in profit. In the Education and Human Resources business, the medical-industry staffing business stalled from the second-quarter consolidated accounting period onward, but the IT human resources training business performed strongly throughout the period. Net sales were ¥350 million, down 2.4% year on year, and segment profit (operating profit) was ¥73 million, up 26.4%, representing a substantial increase in profit. In the Investment Management business, net sales declined due partly to narrower bond interest-rate spreads in the securities investment business. However, as securities markets were generally stable, net sales were ¥63 million, down 58.8% year on year, and segment profit (operating profit) was ¥33 million, down 22.3%.」

「For the second-quarter year-to-date consolidated period, consolidated net sales were ¥2,402 million, down 25.6% year on year; operating income was ¥149 million, down 4.1%; ordinary income was ¥147 million, down 13.3%; and net income attributable to owners of the parent was ¥315 million, up 158.6%.」

「In the Publishing business, online sales were strong and publication of new books progressed smoothly. However, due to the return of hit products from the same period of the previous year and other factors, net sales were ¥540 million, down 15.5% year on year, and segment profit (operating profit) was ¥39 million, down 65.1%. In the Corporate Services business, orders from new clients increased, as did orders from existing foreign-affiliated clients against a backdrop of recovering overseas economies. Net sales were ¥169 million, up 5.6% year on year, and segment profit (operating profit) was ¥7 million, compared with a segment loss of ¥8 million in the same period of the previous year, marking a return to profitability. In the Software and Network business, paid-content sales declined due to reduced advertising expenditure, while the effects of the restructuring carried out in the previous consolidated fiscal year also contributed to results. Net sales were ¥244 million, down 27.9% year on year, and segment profit (operating profit) was ¥25 million, compared with a segment loss of ¥9 million in the same period of the previous year. In the Education and Human Resources business, the medical-industry staffing business and IT human resources training business generally performed steadily. Net sales were ¥132 million, down 7.1% year on year, and segment profit (operating profit) was ¥30 million, up 6.2%. In the Investment Management business, net sales declined due partly to the reaction to the redemption of some bonds held in the securities investment business in the same period of the previous year. However, as securities markets were generally stable and the amount invested and managed increased, net sales were ¥19 million, down 45.1% year on year, and segment profit (operating profit) was ¥11 million, up 65.8%.」

「In the Software and Network business, smartphone content business performance remained stable. However, primarily due to temporary cost increases in contract development during the third-quarter consolidated accounting period, net sales were ¥1,163 million, down 14.5% year on year, and the segment loss (operating loss) was ¥125 million, compared with segment profit of ¥191 million in the previous fiscal year.」

「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.」

「In the Corporate Services business, upfront investments, including the expansion of the production staff, began to bear fruit. As inquiries for orders from new clients gradually increased, net sales were ¥369 million, down 8.2% year on year, and segment profit (operating profit) was ¥11 million, down 67.7%, marking a return to profitability.」

「①All operating companies profitable」