FY2023 First Quarter Consolidated Financial Results: Japan

CyberAgent reported a consolidated net loss of ¥5,002 million for FY2023 Q1, a significant reversal from the ¥19,804 million operating income recorded in the same period of the previous year.

Consolidated net sales declined by 2.1% to ¥167,577 million, as strong growth in the media business was insufficient to offset losses in the game and investment-development segments.

The company’s operating income swung to a loss of ¥1,255 million, with all business segments reporting operating losses during the quarter.

Total liabilities increased by ¥50.5 billion to ¥211,331 million, primarily due to the issuance of convertible bonds, which contributed to a decline in the equity ratio to 31.2%.

While internet advertising sales grew by 8.9%, the segment experienced a 13% drop in operating income.

Despite the poor quarterly performance, CyberAgent maintained its full-year FY2023 forecast, which projects a net income of ¥720 million and an operating loss of ¥40 billion.