Dependence on Sponsorship Fees and Advertising Expenses and Risk of Constrained Market Growth
First written in FY2022. 11 of 13 entries say "Restated". Latest entry: 2026-09-24.
The whole theme swung hardest in 2020: 6 of 10 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- 2026-09-24RestatedManagement planning
「The esports market’s revenue structure remains heavily dependent on advertising budgets and sponsorship fees from client companies. A reduction in corporate promotional spending due to an economic downturn or other factors could slow market growth and affect the business and performance of the Group.」
The Company reconfirms the risks arising from dependence on advertising budgets and sponsorship fees and from reduced spending during an economic downturn. - FY2026RestatedAnnual report
「Meanwhile, the esports market's revenue structure remains heavily dependent on client companies' advertising budgets and sponsorship fees. If companies curb promotional spending due to an economic downturn or other factors, market growth may slow and affect the performance of our group.」
It continues to explicitly identify the market's dependence on advertising budgets and sponsorship fees, and the risk that an economic downturn will lead to reduced promotional spending. - FY2026-H1RestatedAnnual report
「During the six months ended 30 September 2024, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」
The company concludes that there have been no material changes regarding the risks associated with dependence on sponsorship and advertising revenue and the potential impediment to market growth. - FY2025RestatedAnnual report
「Meanwhile, the esports market's revenue structure remains heavily dependent on client companies' advertising budgets and sponsorship fees. If companies curb promotional spending due to an economic downturn or other factors, market growth may slow and affect the performance of our group.」
It continues to explicitly identify the market's dependence on client companies' advertising budgets and sponsorship fees, and the risk that an economic downturn will lead to reduced promotional spending. - FY2025-H1RestatedAnnual report
「During the six months ended 30 September 2024, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」
It states that there have been no material changes regarding the risks of dependence on sponsorship and advertising revenue and impediments to market growth. - FY2024RestatedAnnual report
「Sponsorship and advertising account for much of the esports market’s revenue at present. If an economic downturn causes operating companies’ performance to deteriorate, growth in the esports market could be impeded, potentially affecting the Group’s business and performance. The Group is continuously exploring new businesses in other fields that extend beyond esports by capturing the markets surrounding esports, and will diversify its revenue sources without excessive dependence on event planning and operations in its client work business.」
While maintaining the risk of dependence on sponsorship and advertising revenue, it identifies diversification of revenue sources through new businesses in other fields as its response. - FY2024-Q2RestatedAnnual report
「During the six months ended 31 August 2023, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」
The company concludes that there have been no material changes regarding the risks associated with dependence on sponsorship and advertising revenue and the potential impediment to market growth. - FY2024-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It states that there have been no material changes regarding the risks of dependence on sponsorship and advertising revenue and impediments to market growth. - FY2023RestatedAnnual report
「Sponsorship and advertising account for much of the esports market’s revenue at present. If an economic downturn causes operating companies’ performance to deteriorate, growth in the esports market could be impeded, potentially affecting the Group’s business and performance. The Group is continuously exploring new businesses in other fields that extend beyond esports by capturing the markets surrounding esports, and will diversify its revenue sources without excessive dependence on event planning and operations in its client work business.」
While reaffirming the risk of dependence on sponsorship and advertising revenue, the company identifies diversification of revenue sources without excessive dependence on event planning and operations as its response policy. - FY2023-Q3WorsenedAnnual report
「Esports has been trending downward as a proportion of sponsors’ promotional strategies on a relative basis.」
The company describes a market environment in which esports is trending downward as a relative proportion of sponsors’ promotional strategies. At the same time, it states in the business and other risks section that there have been no material changes. - FY2023-Q2RestatedAnnual report
「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The company concludes that there have been no material changes regarding the risks associated with dependence on sponsorship and advertising revenue and the potential impediment to market growth. - FY2023-Q1RestatedAnnual report
「During the six months ended [current first quarter], there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The company concludes that there have been no material changes regarding the risks associated with dependence on sponsorship and advertising revenue and the potential impediment to market growth. - FY2022First statedAnnual report
「Sponsorship and advertising account for much of the esports market’s revenue at present. If an economic downturn causes operating companies’ performance to deteriorate, growth in the esports market could be impeded, potentially affecting our business and performance.」
The company discloses the concentration of market revenue in sponsorship and advertising as an external-environment risk.