Risks at atone involving younger users, fraudulent transactions and bad debts
First written in FY2022. 2 of 7 entries say "Materialised", first in FY2024-Q1. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026RestatedAnnual report
「Purchasers using atone tend to be younger than those using NP Deferred Payment, and generally face a higher risk of non-payment.」
The company continues to describe the risks of non-payment and fraudulent transactions associated with younger users and digital products on atone. - FY2025MitigatedAnnual report
「The factors affecting the BtoC service atone are as follows. ・Improved collection performance and earlier collection reduced bad debt-related expenses and billing-related expenses as a percentage of GMV, resulting in a higher gross profit margin.」
At atone, the company explained that improved collection performance and earlier collection reduced bad debt-related expenses and other costs as a percentage of GMV, raising the gross profit margin. The risks of non-payment and fraudulent transactions involving younger users and digital products continue, however. - FY2025-H1MitigatedAnnual report
「Bad debt-related expenses were temporarily high in the first quarter of the previous year, but they decreased in the current period because that impact was absent. ・Collection costs decreased because receivables were collected earlier.」
At atone, the impact of the temporary increase in bad debt-related expenses in the first quarter of the previous year disappeared, while collection costs also declined as receivables were collected earlier. - FY2024-Q3Explicitly stated the expected improvement through control of uncollected receivablesAnnual report
「As overall volume increases and the recovery of receivables in new areas improves, fluctuations in the allowance for doubtful accounts are expected to be contained and the recovery rate to improve.」
At atone, the allowance for doubtful accounts continued to fluctuate significantly, while the company indicated that the expansion of transaction volume and progress in managing uncollected receivables in new areas are expected to contain fluctuations and improve recovery. - FY2024-Q2MaterialisedAnnual report
「atone is a new service that is being piloted across a range of industries and business formats to measure risk rates, and as a result, its allowance for doubtful accounts tends to fluctuate significantly. As overall volume increases and the recovery of receivables in new areas improves, fluctuations in the allowance for doubtful accounts are expected to be contained and the recovery rate to improve.」
Significant fluctuations in atone's allowance for doubtful accounts continued, and atone's cumulative gross profit for the second quarter decreased 17.1% year on year. The company also described the outlook for controlling future uncollected receivables and containing fluctuations. - FY2024-Q1MaterialisedAnnual report
「atone is a new service that is being piloted across a range of industries and business formats to measure risk rates, and as a result, its allowance for doubtful accounts tends to fluctuate significantly.」
At atone, the tendency for the allowance for doubtful accounts to fluctuate significantly became evident, and gross profit for the first quarter decreased 32.9% year on year. - FY2022First statedAnnual report
「Purchasers using “atone” tend to be younger than those using NP Atobarai, generally increasing the risk of nonpayment and tending to reduce the accuracy of credit screening. If these factors result in higher-than-expected bad debts in the atone business, or if the prevention of fraudulent transactions does not produce the expected results, this could affect the Group’s business results and financial position.」
The company identifies risks specific to atone, including nonpayment associated with member registration, younger users and digital product use, credit assessment accuracy and fraudulent transactions.