CyberAgent (4751) investor relations material

Executive summary

• Net sales rose 14% year-over-year to ¥232.3B, with operating profit up 2.8 times to ¥23.3B and net income attributable to owners of parent up 2.5 times to ¥12.4B, marking record Q1 results.

• Growth was led by strong performance in the Media & IP and Game businesses, while the Internet Advertisement business declined due to a major client loss.

• AbemaTV achieved its first quarterly operating profit since establishment.

• Record-high results were achieved despite typical seasonal weakness, with significant contributions from global game expansion and improved profitability in media.

• Net income attributable to owners of parent rose 145.7% year-over-year.

Financial highlights

• Gross profit increased 38.9% year-over-year to ¥74.97B.

• Operating margin improved to 10.1% from 4.1% a year ago.

• SG&A expenses rose 12.9% year-over-year to ¥51.5B.

• Ordinary income surged 174.9% to ¥24.2B.

• Basic earnings per share rose to ¥24.58 from ¥10.01 year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥880B, with operating profit guidance of ¥50–60B and net income forecast at ¥25–30B.

• Q1 progress rates: 26.4% of annual sales and 46.8% of lower-end operating profit target achieved.

• The company expects to return to a growth trajectory in the next quarter, with strong growth anticipated from Q3 onward.

• No revision to the previously published forecast.

• The impact from the loss of a major advertising client will end next quarter, with positive changes expected.