1Q FY2020 Presentation Material: October to December 2019

Key insights

6 takeaways

01
The company generated 115.6 billion yen in net sales for 1Q FY2020, meeting approximately 25% of its 465 billion yen full-year revenue target.See it on page 16
02
Operating and ordinary income both reached 7.7 billion yen, tracking toward the annual target range of 28 billion to 32 billion yen.See it on page 13
03
Profit attributable to owners of the parent was 1.4 billion yen, representing 15% to 18% of the projected 8 billion to 10 billion yen annual goal.See it on page 13
04
The Abema media platform reached 48 million total downloads by the end of December 2019, supported by growth in weekly active users across news, sports, and original reality programming.See it on page 28
05
Gaming segment momentum was driven by established titles including Granblue Fantasy, BanG Dream! Girls Band Party, and the third anniversary of Princess Connect! Re:Dive.See it on page 20
06
The media business is shifting toward a diversified revenue model that balances advertising and subscription income with peripheral services like the WinTicket betting platform to accelerate profitability.See it on page 36

Summary

CyberAgent achieved a robust financial start to the 2020 fiscal year, recording consolidated sales of 115.6 billion yen, a 4.4 percent year-over-year increase, alongside a significant 44.6 percent surge in operating profit to 7.7 billion yen. This performance reflects a successful stabilization of the core Internet Advertisement business and enhanced operational efficiency within the gaming division. Despite a minor decline in total segment sales for gaming, disciplined marketing expenditures and the successful launch of new titles such as World Flipper and Blade Xlord bolstered overall profitability.

The media segment, anchored by AbemaTV, remains a primary focus for long-term growth. While the platform generated 12.2 billion yen in sales—a 6.9 percent year-over-year increase—it incurred an operating loss of 5.0 billion yen as the company prioritizes aggressive market expansion. Strategic efforts to bridge this gap include scaling the AbemaPremium subscription service, which reached 593,000 subscribers, and diversifying revenue streams through innovative advertising formats and the integration of the WinTicket gambling platform.

Looking ahead, the corporate strategy emphasizes a dual commitment to sustaining the momentum of the media business and cultivating a high-quality, long-term gaming portfolio. By balancing immediate financial gains with continued investment in digital infrastructure and ESG initiatives, the company aims to maintain a sustainable growth trajectory. These efforts, spanning the October to December 2019 period, underscore a broader transition toward diversified digital monetization and the refinement of operational models across the Japanese technology and entertainment landscape.