Thank you for your support. On Thursday, October 11, 2018, AUN Consulting Inc. announced its financial results for the first quarter of the fiscal year ending May 2019. I would like to give a brief update on these results.
During the first quarter of this consolidated fiscal year under review (June 1, 2018, to August 31, 2018), the Japanese economy continued its moderate recovery against a background of improved corporate earnings and a stronger employment and income environment.
Regarding overseas economies, the corporate environment is uncertain: for instance, the impact on the world economy of protectionist trade policies in the United States and increasing geopolitical risks in the Middle East and East Asia.
With regards to the domestic Internet advertising market, the primary area of business for the AUN Group, video advertisements for mobile devices have picked up and driven growth in the field of programmatic advertising, with Internet advertising expenditures for 2017 reaching 1 trillion 509.4 billion yen (up 15.2% year-on-year), thus recording double-digit growth for four consecutive years (Dentsu Inc. “2017 Advertising Expenditures in Japan”).
Additionally, in the inbound tourism market, the number of tourists visiting Japan from abroad in 2017 was 28.69 million (up 19.3% compared to the same period of the previous year), the largest number of visitors since statistics started being collected in 1964. 2018 has also seen steady arrivals, with the cumulative total from January to August reaching 21.3 million—the fastest time so far to exceed 20 million in a year (Japan National Tourism Organization (JNTO) "Visitor Arrivals"). Although there are concerns about the impact on foreign visitors to Japan due to natural disasters such as earthquakes and heavy rains occurring all over Japan, given the economic growth of Asian countries, it is anticipated that the number of tourists visiting Japan will continue to increase and that the demand for promotions aimed at foreign visitors will continue to grow in Japanese companies.
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 in the first quarter of this consolidated fiscal year saw a total turnover of 394.847 million yen (down 15.0% compared to the same period of the previous year), with an operating loss of 31.118 million yen (operating loss was 10.251 million yen in the same period of the previous year), ordinary loss of 17.976 million yen (ordinary loss was 5.281 million yen in the same period of the previous year), and a quarterly net loss of 18.109 million yen attributable to parent company shareholders (quarterly net loss attributable to parent company shareholders was 7.635 million yen in the same period of the previous year).
We look forward to your continued generous support.