CyberAgent Quarterly Report: Q1 Fiscal Year 2022

Key insights

7 takeaways

01
CyberAgent's Q1 FY2022 (Oct 1–Dec 31, 2021) net sales rose 30.6% year over year to 171.09 billion yen.See it on page 1
02
Operating profit jumped 180.6% to 19.80 billion yen and ordinary profit rose 186.1% to 19.84 billion yen, so profit grew far faster than sales.See it on page 3
03
The gaming segment drove the results, with sales up 94.7% to 58.33 billion yen and operating profit of 17.13 billion yen. This is close to the group's entire operating profit of 19.80 billion yen.See it on page 3
04
The growth in gaming came from new titles launched in early 2021.See it on page 3
05
The media segment grew revenue 22.4% to 25.00 billion yen but posted a 3.84 billion yen operating loss because of ongoing strategic investment in the ABEMA platform.See it on page 3
06
The balance sheet is stable, with total assets of 353.90 billion yen and an equity ratio of 35.8%.See it on page 4
07
CyberAgent adopted new revenue recognition standards this quarter, so game item sales are now recognized over customers' estimated usage period. The change had a negligible effect on profit and loss, and Deloitte Touche Tohmatsu LLC's quarterly review found the statements fairly presented under Japanese accounting standards.See it on page 10

Summary

CyberAgent’s quarterly report for the first quarter of fiscal year 2022, covering the period from October 1, 2021, to December 31, 2021, details a period of significant financial growth driven primarily by the company’s gaming segment. The report outlines the consolidated financial performance of the group, which continues to balance aggressive investment in the ABEMA media platform with strong revenue generation across its core business units.

Financial results for the quarter show robust year-over-year growth, with net sales reaching 171.09 billion yen, a 30.6% increase compared to the same period in the previous year. Operating profit surged by 180.6% to 19.80 billion yen, while ordinary profit rose by 186.1% to 19.84 billion yen. The gaming segment served as the primary catalyst for this performance, recording 58.33 billion yen in sales—a 94.7% increase—and an operating profit of 17.13 billion yen, fueled by the contribution of new titles launched in early 2021. Conversely, the media segment, while growing its revenue by 22.4% to 25.00 billion yen, maintained an operating loss of 3.84 billion yen due to ongoing strategic investments in ABEMA.

The company’s financial position remains stable, with total assets of 353.90 billion yen and an equity ratio of 35.8%. During this quarter, CyberAgent adopted new accounting standards for revenue recognition, which impacted the reporting of game-related item sales by aligning revenue recognition with the estimated usage period of customers. The report confirms that these accounting changes had a negligible impact on the overall profit and loss for the period. The financial statements were subject to a quarterly review by Deloitte Touche Tohmatsu LLC, which concluded that the documents fairly represent the company’s financial status in accordance with Japanese accounting standards.