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Nova's April-June 2007 Quarterly Report Out
Nova's quarterly report [pdf] for the period of April to June 2007 has been released and the results are not encouraging.
If you've been following the developments here on LJ, you know that Nova has been taking a beating after METI suspended part of Nova's business for six months on June 13. It's important to remember that Nova was already performing poorly before the punishment from METI. Nova lost 3 billion yen in FY 2005 and 2.5 billion in FY 2006. In the first quarter of FY2007, it lost 2.4 billion.
That this earnings statement is bad should come as no surprise, but remember that it only covers 2 weeks of earnings following the METI sanction, so it shouldn't have that great of an impact. The results, however, are very bad, and this isn't because of METI ; it's reflection of how rotten to the core Nova really is.
The highlights from page 1
Total sales: Down 31.9% to 9.2 billion yen from the previous year.
Operating profit: -4.5 billion yen.
Net profit: -2.4 billion yen.
Book value per share: 5.26 yen, down from 42.40 yen.
Comment: Ay carumba! By the book value alone, your average home is more valuable than Nova! The quarter that we are in now (2nd quarter) is going to be really ugly since it will reflect the full impact of the METI sanction.
Update: A few reports on Nova's first quarter results:
The Japan Times
- Shawn's blog
- or to post comments
Comments
Nova are really in a corner now. It won't take much longer...a quick death would be best.
That's it for NOVA.
I hope anyone working for them has made plans to either get out of Japan or find another job.
Reading the comments on this site, it seems like a lot of people are really hoping for a Nova collapse. Sure, if you worked for the company and had a lame manager, I could see why you'd have a beef with it. I could even understand if you worked for another private English school and were hoping that yours would pick up some Nova students once the collapse came (although, that seems pretty unlikely). But rooting for the company's demise just because..... that's just cruel. I urge you to think about how many lives it would ruin. A large percentage of Nova instructors are just here for a year and if the company collapsed, they'd have to go home a little early.... big deal, right? But some instructors have built lives in Japan and are sick with worry about their futures right now. They have girlfriends/boyfriends, spouses, children. I know a lot of international couples amoung the instructors who wouldn't be able to stay together if they lost their jobs. And how about the Japanese staff? They're the ones seriously getting dicked around and not getting paid. And if the company collapsed, that's about 2000 or so Japanese people who are now unemployed. Is that really a reason to celebrate the fall of the pink rabbit? Before you post "Yay! Nova is an evil company that deserves to go down!" please think about the people who didn't have anything to do with Nova's corrupt refund policy and are the ones most effected by these events.
re I don't get it
Sure people depend on this company for there income BUT they were telling lies fed to them by higher up to make sales. The sales pitch was scripted and the staff knew that booking lessons wasn't as free and easy as promised. That alone should have made them wary of trusting upper management. No one that has worked for NOVA long term isn't aware of the duplicitous nature of the company. In the end if it goes belly up then the reality check maybe tough but surely not mortal. Thats why they have been paying social insurance but only after being forced to by the courts.
As the old saying goes You make your bed now lie in it.
wondering what lies ahead
My fiancée is planning to leave shortly for a one year Nova employment. By the sounds of what I've been hearing here and there things really don't look good for Nova right now. Her visa has all been arranged though and the flight is paid, and Nova doesn't seem to be skipping a beat recruiting new teachers. I wonder how long things will hold together over there though. It was always a nice option on the side to be able to search for other, possibly better, employment in Japan for the length of the visa, but now it seems that it might be a forced reality upon her.
Anybody know teachers who went across to Japan with Nova, then split off and found employment elsewhere? Or who might have resources or suggestions for somebody looking to do so?
She's wanted to teach in Japan since before I met her, so she's definitely going. I just hope she doesn't have a tough time over there, given Nova's current situation.
leaving nOVA
Yeah I ditched Nova over a year ago. No problem. Many people do it. Just give them a month notice.
Look on the gaijinpot website for jobs.
BTW It's possible to collect unemployment benefit (70%of your monthly income)for 3 months. You may have had to have worked for a company for a minimum period of time though.(maybe 6mths). If the company you work for goes bust you can collect it immediately but if you leave voluntarily theres a 3 month waiting period.
I just hope we get paid on time this month. I was in a Nova bubble until yesterday. I had no idea Nova was in this kind of trouble because my branch is full of managers, who aren't going to scare us away by telling the truth obviously, and clueless newbies. I was told a few days ago my apartment was being closed, heard yesterday a bunch of Nova apartments were being closed, which made me think something was wrong, then I checked here. Unfortunately, it doesn't seem many places are hiring in my area (East-Tokyo, northwest Chiba) on this site. Any recommendations for finding a place not listed here?
Oh, and if anyone is interested in working for Nova or was hired and hasn't left yet, I would advise you not to go. Yeah, coming to Japan is great, but being terrified of whether or not you're going to get paid and if you will be homeless soon because you have no money or Nova lays people off or just collapses, far away from your family, is an awful feeling. Also, if Nova does lay instructors off or does collapse or if instructors start quitting in droves, there will be far fewer eikaiwa jobs available to fall back on. Anyway, if I was still in the US and wanted to come here, I'd try ECC, Aeon, Geos.