CyberAgent Q3 Quarterly Report: Fiscal Year 2023

CyberAgent’s third-quarter report for the fiscal year ending September 30, 2023, outlines the company’s financial performance for the period spanning April 1, 2023, to June 30, 2023. The primary objective of the report is to disclose the group’s consolidated financial results, including revenue, profit margins, and segment-specific performance, while providing transparency regarding its ongoing investments in the ABEMA streaming platform and other core business areas.

Financial results for the nine-month period ending June 30, 2023, show consolidated net sales of 534.97 billion yen, a marginal increase of 0.1% compared to the same period in the previous year. However, profitability saw a significant decline, with operating profit falling 66.1% to 18.97 billion yen and net profit attributable to owners of the parent company dropping 82.6% to 3.60 billion yen. Segment performance varied: the media business, driven by ABEMA, saw a 22.6% revenue increase but remained in a loss position due to heavy investment. The internet advertising segment achieved record-high sales of 301.32 billion yen, though operating profit decreased by 28.8%. The game business experienced a 21.2% revenue decline and a 58.2% drop in operating profit, largely attributed to the cyclical nature of anniversary events and performance fluctuations.

The report covers the company’s operations within Japan and reflects a period of strategic investment and capital adjustment. Total assets increased to 464.65 billion yen, primarily due to the issuance of convertible bonds and increased long-term borrowing. The equity ratio declined to 30.7% from 37.6% at the end of the previous fiscal year. Additionally, the document notes a pending patent infringement lawsuit filed by Konami Digital Entertainment against Cygames regarding the game "Uma Musume Pretty Derby," which the company intends to contest. The financial statements were subject to a quarterly review by Deloitte Touche Tohmatsu LLC, which concluded that the statements fairly represent the company’s financial position.