CyberAgent Q1 2023 Quarterly Report

CyberAgent’s first-quarter report for the fiscal year ending September 2024 details the company’s financial performance for the period from October 1, 2023, to December 31, 2023. The primary objective of the report is to provide transparency regarding the group’s consolidated financial position, operating results, and cash flows, while maintaining compliance with the Financial Instruments and Exchange Act. The company continues to prioritize long-term growth through strategic investments in its media platform, ABEMA, while leveraging its core internet advertising and gaming segments to drive revenue.

Financial results for the quarter show a strong upward trajectory, with consolidated net sales reaching 193,075 million yen, a 15.2% increase compared to the same period in the previous year. The company achieved an operating profit of 6,284 million yen, a significant turnaround from the 1,255 million yen loss recorded in the prior year’s first quarter. While the media segment remains in an investment phase, it saw a 27.8% revenue increase. The internet advertising segment performed robustly with a 10.1% revenue growth and a 13.3% increase in operating profit. The gaming segment also contributed to growth, reporting a 10.1% revenue increase driven by successful new title releases, though operating profit declined by 32.9% due to shifting product mixes.

The report confirms that the company’s financial foundation remains stable, with total assets of 468,681 million yen and an equity ratio of 28.8%. The document also includes a disclosure regarding ongoing litigation involving the subsidiary Cygames, which is currently defending against a patent infringement claim related to the game "Uma Musume Pretty Derby." The company maintains that no infringement has occurred and intends to defend its position through legal proceedings. The financial statements were subject to a quarterly review by Deloitte Touche Tohmatsu LLC, which issued an unmodified conclusion.