CyberAgent (4751) Q4 2024 earnings summary

Executive summary

• Achieved record sales of ¥802.9B in FY2024, up 11.5% year-over-year, marking 27 consecutive years of growth.

• Operating income rose 70.4% to ¥41.8B, with net income attributable to owners up 204.7% to ¥16.2B.

• All three core businesses—Internet Advertisement, Game, and Media—delivered strong results, with significant improvements in profitability and user engagement.

• Media business (ABEMA) saw sales growth and reduced losses, while the ad business outpaced market growth.

• Game business recovered after a challenging period, aided by new title releases.

Financial highlights

• Gross profit increased 14.6% year-over-year to ¥220.5B; operating margin improved to 5.2% from 3.4%.

• Consolidated sales increased for the 27th consecutive year.

• SG&A expenses rose 6.5% to ¥178.7B, including year-end bonuses for the first time since FY2021.

• Total assets grew 8.9% to ¥520.4B; net cash position improved by 8.1% to ¥99.0B.

• Dividend forecast raised to ¥16 per share, with DOE at 5.3% and ROE at 17.7%.

Outlook and guidance

• FY2025 sales projected at ¥820B (+2.1% YoY), operating profit at ¥42B (+0.4% YoY), and net income at ¥21B (+29.3% YoY).

• Dividend forecast for FY2025 is ¥17 per share, up 6.3% year-over-year.

• Media business is expected to start booking operating profits from FY2025 onwards.

• Net profit growth expected despite limited sales/OP increase due to one-time console game revenue in FY2024.

• Continued focus on sales and profitability growth, with emphasis on IP creation.