CyberAgent Quarterly Report: Term 26 Q2

This quarterly report details the financial performance of CyberAgent, Inc. for the second quarter of the 26th fiscal term, covering the period from January 1, 2023, to March 31, 2023. The document serves as a formal disclosure of the company’s consolidated financial results, including balance sheets, income statements, and cash flow analysis, prepared in accordance with the Financial Instruments and Exchange Act.

During this period, the company reported consolidated net sales of 363,235 million yen, a marginal increase of 0.3% compared to the same period in the previous year. However, profitability saw a significant decline, with operating profit falling by 61.5% to 17,531 million yen and net profit attributable to owners of the parent dropping by 83.1% to 2,898 million yen. This downturn was primarily driven by heavy strategic investments in the "ABEMA" media platform, including costs associated with broadcasting the FIFA World Cup, alongside performance fluctuations in the game and internet advertising segments.

The report highlights a shift in the company’s financial position, with total assets increasing to 428,812 million yen, largely due to the issuance of convertible bonds with stock acquisition rights. This issuance also impacted the company’s capital structure, resulting in a decrease in the equity ratio to 32.7%. Despite the decline in profits, the company maintained a stable cash position, with cash and cash equivalents totaling 185,281 million yen at the end of the quarter. The financial statements were subjected to a quarterly review by Deloitte Touche Tohmatsu LLC, which concluded that the documents fairly represent the company’s financial status and performance in all material respects.