1Q FY2023 Presentation Material: October to December 2022

Key insights

6 takeaways

01
Consolidated quarterly revenue reached 191.1 billion yen for 1Q FY2023, while operating profit fell to 5.2 billion yen due to increased personnel costs of 25 billion yen and heavy media segment investments.See it on page 32
02
The advertising business remains the primary profit driver with 95.6 billion yen in sales, followed by the gaming business at 40.9 billion yen.See it on page 36
03
The ABEMA media platform incurred a 9.3 billion yen operating loss during the quarter, driven by content acquisition and infrastructure costs associated with the FIFA World Cup Qatar 2022.See it on page 27
04
The World Cup drove ABEMA weekly active users to a peak of over 30 million, with 24% of viewership occurring on television screens.See it on page 29
05
The company is leveraging profits from advertising and gaming to fund media growth, including the WINTICKET betting service, which recorded 88.9 billion yen in transaction volume.See it on page 36
06
ABEMA's user demographic during the World Cup was notably diverse, consisting of 44% female users and 31% of users in the 20-34 age bracket.See it on page 26

Summary

CyberAgent’s financial performance for the first quarter of fiscal year 2023 reflects a strategic transition period characterized by heavy capital allocation toward high-visibility media events. The company recorded consolidated sales of 167.5 billion yen, representing a slight year-over-year decline of 2.1 percent, alongside an operating loss of 1.2 billion yen. This deficit is primarily attributed to significant upfront investments associated with the broadcast of the FIFA World Cup Qatar 2022, which served as a catalyst for record-high engagement on the ABEMA platform.

The gaming division experienced a temporary contraction in both revenue and operating profit, largely due to the cyclical nature of major game anniversary events. Conversely, the internet advertisement business demonstrated resilience, achieving a 12.7 percent sales increase. The WINTICKET platform also contributed positively to the quarterly results, underscoring the company’s diversified approach to digital entertainment and services. These segments remain central to the firm’s broader objective of balancing immediate operational costs with long-term market expansion.

Looking toward future growth, the organization has codified a new corporate purpose centered on digital transformation and the continued scaling of the ABEMA ecosystem. Strategic initiatives now prioritize the cultivation of a global, meritocratic organizational culture supported by robust talent management frameworks. By integrating these human capital strategies with ongoing content partnerships and platform development, the company aims to stabilize its financial trajectory and foster sustainable growth across its core digital segments. This shift emphasizes a commitment to long-term value creation over short-term profit fluctuations.