CyberAgent (4751) Q1 2025 earnings summary

Executive summary

• Net sales rose 5.6% year-over-year to ¥203.8 billion, with operating profit up 32.1% to ¥8.3 billion, marking a strong start to the fiscal year.

• Net income attributable to owners was ¥5.1 billion, reversing a net loss of ¥472 million in the prior year.

• Growth was driven by strong Media & IP and Internet Advertisement segments, while the Game segment declined.

• Achieved 24.9% of annual sales target and 19.8% of OP target in Q1, considered on track.

• First quarter is typically weaker, but current progress aligns with expectations.

Financial highlights

• Net sales: ¥203.8 billion (up 5.6% YoY); operating income: ¥8.3 billion (up 32.1% YoY); net income: ¥5.1 billion (up from a loss of ¥0.47 billion YoY).

• Gross profit increased 7.9% YoY to ¥54.0 billion; operating margin improved to 4.1% from 3.3% YoY.

• SG&A expenses rose 4.4% YoY but declined 8.6% sequentially.

• Total assets grew 12.0% YoY to ¥525.0 billion; net cash stood at ¥87.7 billion, up 13.3% YoY.

• Equity decreased by ¥2.2 billion to ¥252.0 billion, mainly due to dividend payments.

Outlook and guidance

• Full-year forecast: net sales of ¥820.0 billion (+2.1% YoY), operating income of ¥42.0 billion (+0.4%), and net income of ¥21.0 billion (+29.3%).

• No revisions to the previously published forecast.

• Media & IP business expected to turn profitable for the full year.

• Six new game titles, including international versions, planned for release this fiscal year.