Papires, known for Renta!, has not achieved sales, has revised downward to an operating loss of 547 million yen, and is also burdened with advance investments in original content and advertising.

On February 10, Papires <3641>, known for "Renta!", revised its consolidated earnings forecast for the fiscal year ending March 2025, with sales of 15.879 billion yen (previous forecast of 18.065 billion yen), and operating. Loss: 547 million yen (profit recorded at 598 million yen), operating loss: 355 million yen (profit recorded at 654 million yen), final loss: 374 million yen (profit recorded at 339 million yen) The amount was recorded in the yen) and EPS-38.0 yen (34.36 yen).

・Revenue: 15.879 billion yen (previous forecast of 18.065 billion yen)
・Operating loss: 547 million yen (profit recorded of 598 million yen in the same year)
・Order loss: 355 million yen (profit recorded of 654 million yen)
・Final loss: 374 million yen (profit recorded of 339 million yen)
・EPS:-38.02 yen (same as 34.36 yen)

The company said it was because sales were below its business plan, and also made advance investments such as creating original content and advertising and promotional measures.

Sales will be affected by the impact of the decline in advertising effectiveness due to the strengthening of targeted advertising regulations following the revision of the Personal Information Protection Act, and the strengthening of content regulations for platforms run by major IT companies due to the introduction of the Digital Services Act. It is trending below.

In response to advertising regulations, we are continuously taking measures such as introducing new advertising methods, and we are also taking measures to improve the site against content regulations, but the improvement effect is delayed later than planned. There is.

Furthermore, the release plans for the production of original content were not met, and the expected sales contribution was not achieved.

In addition, the sales effect of mass advertising conducted in the third quarter fell below previous results, and fell below the sales plan, based on the cumulative results for the third quarter, as of March 2025. It was determined that it would be difficult to recover sales.

With sales of operating profit, operating profit, and bottom-profit, we aim to expand our business in the medium- to long-term, with sales falling below our business plan, and investing in the production and development of original content and next-generation content, as well as advertising and advertising policies. The proactive and continuous implementation is expected to result in losses.