Papyless lowered its consolidated earnings forecast for the fiscal year ending March 2027. Due to the first-half sales shortfall and the suspension of the Renta! service following unauthorized access, it expects a net loss of ¥20.9 million and an operating loss of ¥14.7 million.
Papyless lowered its consolidated earnings forecast for the fiscal year ending March 2027, reducing net sales from ¥764.7 million to ¥734.9 million, revising its previous forecast of an operating profit to an operating loss of ¥14.7 million, its previous forecast of an ordinary profit of ¥11.4 million to an ordinary loss of ¥11.4 million, and its previous forecast of a net profit of ¥1 million to a net loss of ¥20.9 million. EPS deteriorated from ¥0.17 to -¥24.76.
For the second half, the company judged that the suspension of servers following unauthorized access to Renta! would have a major impact, making the full-year outlook unfavorable in conjunction with the first-half revenue shortfall. No sales are expected during the server suspension, and the period until service resumes and the decline in users' purchasing activity are expected to weigh on revenue. Related expenses will decline with lower sales, while promotional expenses are expected to be restrained during the suspension.
Following the unauthorized access, the company suspended the servers of the electronic-book sales site Renta! and took steps to restore the service. The library function for viewing purchased works, “Library (simplified version),” has now resumed, while purchase-related functions, including payments, are scheduled to be introduced in stages.