CyberAgent Q1 Fiscal Year 2021 Quarterly Report

Key insights

7 takeaways

01
CyberAgent reported consolidated net sales of 131.01 billion yen for Q1 FY2021, a 13.3% year-over-year increase, while net income attributable to owners rose 101.3% to 2.93 billion yen.See it on page 17
02
The Internet Advertising segment achieved record-high sales of 76.59 billion yen, marking a 13.8% increase compared to the same period in the previous year.See it on page 3
03
The Media business grew sales by 67.0% to 20.43 billion yen, though it sustained an operating loss of 3.93 billion yen due to continued heavy investment in the ABEMA platform.See it on page 3
04
The Game business saw a significant downturn, with segment profit falling 77.8% to 1.14 billion yen on 29.95 billion yen in sales, driven by seasonal performance issues with existing titles.See it on page 3
05
Despite top-line growth, total operating profit declined 8.7% to 7.06 billion yen, and ordinary profit fell 10.2% to 6.93 billion yen.See it on page 11
06
The Investment Development segment provided a strong financial buffer, contributing 4.64 billion yen in operating profit for the quarter.See it on page 11
07
As of December 31, 2020, the company held total assets of 252.09 billion yen with an equity ratio of 33.3%.See it on page 10

Summary

CyberAgent’s fiscal year 2021 first-quarter report, covering the period from October 1, 2020, to December 31, 2020, details the company’s financial performance amidst the ongoing COVID-19 pandemic. The report serves as a formal disclosure of consolidated financial results, highlighting a strategic balance between aggressive investment in the ABEMA media platform and the maintenance of core business segments.

Financial results for the quarter show a consolidated net sales figure of 131.01 billion yen, representing a 13.3% increase compared to the same period in the previous year. Despite this top-line growth, operating profit declined by 8.7% to 7.06 billion yen, and ordinary profit fell by 10.2% to 6.93 billion yen. Conversely, net income attributable to owners of the parent company rose significantly by 101.3% to 2.93 billion yen. The company’s total assets were recorded at 252.09 billion yen, with an equity ratio of 33.3% at the end of the quarter.

Performance varied across business segments. The Internet Advertising business achieved record-high sales of 76.59 billion yen, a 13.8% increase, while the Media business saw a 67.0% surge in sales to 20.43 billion yen, though it continued to record an operating loss of 3.93 billion yen due to sustained investment in ABEMA. The Game business experienced a downturn, with sales of 29.95 billion yen and an operating profit of 1.14 billion yen, reflecting a 77.8% decrease in segment profit attributed to seasonal factors affecting existing titles. Meanwhile, the Investment Development segment performed strongly, contributing 4.64 billion yen in operating profit. The report concludes with an independent auditor’s review, which found no material issues regarding the accuracy of the financial statements.