Quarterly Report Amendment: Q3 Term 25

This report serves as a formal amendment to the third-quarter financial results for CyberAgent, Inc., covering the period from April 1, 2022, to June 30, 2022. The primary purpose of this filing is to correct previously reported consolidated financial statements following the discovery of inappropriate accounting practices at a consolidated subsidiary, CyberOwl. An internal investigation committee, which included external experts, confirmed that these irregularities necessitated adjustments to historical financial data, including the correction of previously immaterial errors.

The financial data for the third quarter of the 25th fiscal year reflects a consolidated revenue of 533,882 million yen, representing a 9.7% increase compared to the same period in the previous year. Despite this growth in top-line revenue, the company reported a decline in profitability, with operating profit at 54,813 million yen (a 29.1% decrease) and net profit attributable to owners of the parent at 19,779 million yen (a 39.8% decrease). Segment performance varied, with the media business reporting a loss of 10,315 million yen, while the internet advertising and game segments remained profitable, contributing 18,859 million yen and 48,427 million yen respectively.

The methodology for these corrections involved a comprehensive internal review followed by an external audit conducted by Deloitte Touche Tohmatsu LLC. The audit firm issued a review report confirming that, following the adjustments, the consolidated financial statements fairly represent the company’s financial position and performance as of June 30, 2022. The report also notes the adoption of new accounting standards regarding revenue recognition and fair value measurement, which were applied from the beginning of the first quarter of the fiscal year.