SE Holdings & Incubations lowered its full-year earnings forecast for the fiscal year ending March 2026, reflecting mounting pressures in Japan’s struggling publishing sector. The Tokyo-based company now expects revenue of ¥7.1 billion ($47 million), down 4.1% from its previous projection, while net income is forecast at ¥450 million ($3 million), a 25% cut from earlier guidance.
The downward revision stems from disappointing sales of both physical books and e-books through the second quarter, alongside weaker-than-expected performance in the company’s corporate services division. Operating profit is now pegged at ¥790 million ($5.3 million), down nearly 17% from prior estimates.
Currency headwinds compounded the challenges, with foreign exchange losses on the company’s overseas borrowings eating into profitability. Ordinary profit projections dropped 29% to ¥640 million ($4.3 million).
The profit warning underscores the difficulties facing Japanese publishers as consumer reading habits shift and print sales continue their decades-long decline. Industry data shows Japan’s publishing market has contracted significantly, with magazine sales falling to roughly a quarter of their peak levels while physical bookstores have halved over the past two decades.
SE Holdings operates in IT-focused publishing and provides marketing services to technology companies.
