CyberAgent Q1 2023 Quarterly Report

CyberAgent’s Q1 2023 quarterly report, covering the period from October 1, 2022, to December 31, 2022, details a period of strategic investment and financial contraction. The company reported a consolidated net sales figure of 167.58 billion yen, representing a 2.1% decrease compared to the same period in the previous fiscal year. Profitability was significantly impacted by heavy investment in the ABEMA media platform, resulting in an operating loss of 1.26 billion yen, a sharp decline from the 19.80 billion yen operating profit recorded in the prior year's first quarter. Consequently, the company posted a quarterly net loss attributable to owners of the parent of 5.00 billion yen.

Segment performance varied across the company’s core business units. The media segment, driven by ABEMA and related services, achieved a 34.0% revenue increase, though it incurred an operating loss of 9.36 billion yen, largely due to costs associated with broadcasting the FIFA World Cup. The internet advertising business remained resilient, growing revenue by 8.9% to 95.64 billion yen with an operating profit of 5.00 billion yen. Conversely, the game business experienced a downturn, with revenue falling 29.9% to 40.92 billion yen and operating profit dropping 69.6% to 5.21 billion yen, attributed to a cyclical lull between major title anniversaries.

The company’s financial position as of December 31, 2022, showed total assets of 423.03 billion yen, an increase driven primarily by the issuance of convertible bonds with stock acquisition rights. Total liabilities rose to 211.33 billion yen, while net assets decreased to 211.70 billion yen, largely due to dividend payments. The equity ratio stood at 31.2%. The financial statements were prepared in accordance with Japanese accounting standards and underwent a quarterly review by Deloitte Touche Tohmatsu LLC, which concluded that the statements fairly represented the company's financial condition and operating results.