Q1 FY2027 Financial Results for the Year Ending March 2027 (Japanese GAAP, Consolidated)

Overview of Results

Papyrus reported net sales of 3,667 million yen for the first quarter to date, up year over year, while operating loss widened to 30 million yen. Ordinary income reached 42 million yen, and net loss attributable to owners of the parent was 16 million yen. In the digital books business, efforts to acquire members and expand content continued. Despite higher promotional expenses, investment in overseas expansion and new content for 5G devices continued. The IP creation business remained unprofitable. The financial position remains solid, with a high equity ratio of 67.4%. There is no change to full-year guidance; the full-year plan is unchanged.

Outlook & Key Focus Points

We will strengthen overseas expansion centered on English- and Chinese-speaking regions, aiming to grow sales through both in-house sites and distributor channels. We will expand Renta!'s member base, increase production of original works, and advance development of 5G-compatible vertical-scrolling content and anime/communication content. As a part of capital policy, treasury stock acquisition is planned, and with dissolution of the capital and business tie-up with Sega Sammy Holdings, we will process the shares held. The strategy emphasizes balancing financial efficiency with growth investments, and the full-year forecast for the FY ending March 2027 remains unchanged.