During the nine months of the consolidated fiscal year under review (June 1, 2018, to February 28, 2019), despite the impact on the economic environment caused by successive natural disasters, the Japanese economy posted a gradual trend toward moderate recovery against a background of improved corporate earnings. On the other hand, personal consumption has been affected by stagnating disposable income and increasing saving orientation, and the outlook for economic recovery is still not optimistic. The corporate environment also remains uncertain—for instance, the impact on the world economy of protectionist trade policies in the United States and increasing geopolitical risks.
With respect to the Japanese domestic online advertising market, which is a principal business area for the Group, the growth of programmatic advertising, centered mainly on large-scale platforms, has been remarkable. In 2018, 1.7589 trillion yen (up 16.5% from the previous year) was spent on online advertising expenses, while 1.7848 trillion was spent on terrestrial TV advertising (Dentsu Inc.: Advertising expenses in Japan in 2018).
In the inbound tourism market, despite some stagnation of demand for Japan following natural disasters such as torrential rains in western Japan, typhoons, and earthquakes, the number of overseas visitors to Japan in 2018 was 31.19 million (up 8.7% from the same period last year)—the largest number since 1964, when such statistics were first recorded (Japan National Tourism Organization (JNTO) "Overseas visitors to Japan"). In the future, accompanying the economic growth of Asian countries, more tourists than ever are expected to visit Japan. Demand by Japanese companies for promotional activities aimed at foreigners is expected to continue to increase.
Given this situation, the AUN Group’s top priority has been ensuring stability and expansion of profitability, and in this consolidated fiscal year, it has devoted its efforts to further expanding profitability in the area of overseas and multilingual marketing support, as well as developing business and services that will play a core role in future profitability and strengthening the organization through human resources development in order to expand business.
As a result of the above factors, performance during the nine months of the consolidated fiscal year under review saw a total turnover of 1,394.244 million yen (up 1.3% compared to the same period of the previous year), with an operating loss of 20.969 million yen (operating loss was 14.369 million yen in the same period of the previous year), ordinary profit of 5.940 million yen (ordinary loss was 19.086 million yen in the same period of the previous year), and a quarterly net profit of 4.762 million yen attributable to parent company shareholders (quarterly net loss attributable to parent company shareholders was 21.848 million yen in the same period of the previous year).