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1Q FY2022 Presentation Material: October to December 2021

26 January 202243 pages2,973 words

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CyberAgent demonstrated significant financial growth during the first quarter of fiscal year 2022, with consolidated sales reaching 171 billion yen and operating profit increasing nearly threefold to 19.8 billion yen. This performance was primarily catalyzed by the Game business, where sales nearly doubled to 58.3 billion yen. The massive success of Uma Musume Pretty Derby, which surpassed 12 million downloads, drove a 15.1-fold year-over-year increase in operating profit for the segment. Despite this momentum, the inherent volatility of the gaming market led to a cautious approach regarding full-year forecasts. The Media segment, led by the streaming platform ABEMA, achieved 24.9 billion yen in sales but reported an operating loss of 3.8 billion yen. This deficit reflects aggressive reinvestment into the online betting platform WINTICKET and content expansion, including the acquisition of Babel Label and integration with the Nintendo Switch. ABEMA continues to scale its reach, recording over 76 million downloads and 18 million weekly active users. Meanwhile, the Internet Advertisement business achieved record sales, supported by the launch of three new subsidiaries focused on digital transformation. The long-term strategic framework involves utilizing high-margin profits from the Advertising and Game segments to fund the evolution of Media into a primary growth pillar and essential social infrastructure. This vision is underpinned by a corporate purpose focused on overcoming economic stagnation through digital innovation and global expansion. Future growth in the gaming sector is anticipated through a robust pipeline of high-profile intellectual properties, including titles based on Final Fantasy VII and Jujutsu Kaisen, while broader corporate sustainability is managed through integrated ESG initiatives.

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FY2021 Presentation Material

CyberAgent achieved record-breaking financial performance in fiscal year 2021, characterized by consolidated sales of 666.4 billion yen and a more than threefold increase in operating profit to 104.3 billion yen. This surge was primarily catalyzed by the Game business, which experienced 68.6% year-over-year growth following the massive commercial success of Uma Musume Pretty Derby. While the Game segment provided the most significant profit contribution, the Internet Advertisement business maintained steady double-digit growth, and the Media segment narrowed its operating losses through the expansion of ABEMA and the WINTICKET betting platform. The strategic focus for the period centered on leveraging high-performing assets to fund long-term growth initiatives. WINTICKET emerged as a critical driver within the Media segment, capturing 25% of the Keirin online betting market and tripling its transaction volume. Simultaneously, the company utilized profits from its established advertising and gaming pillars to invest in ABEMA’s digital transformation and content offerings, including pay-per-view services. This diversification strategy aims to stabilize the inherent volatility of the gaming industry, which led to the omission of specific earnings forecasts for the upcoming fiscal year. Future growth is predicated on a robust pipeline of high-profile intellectual properties and strategic partnerships with industry leaders such as Nintendo, SEGA, and Bandai Namco. Upcoming releases, including titles based on the Final Fantasy VII and Jujutsu Kaisen franchises, are expected to sustain the momentum established in 2021. By aligning its corporate purpose with digital innovation and cross-media expansion, the organization seeks to transition from a gaming-heavy profit structure toward a more balanced ecosystem where media and advertising provide consistent, long-term value.

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CyberAgent achieved record-high consolidated sales of 131 billion yen during the first quarter of fiscal year 2021, representing a 13.3% year-over-year increase. This growth was primarily propelled by the Media and Advertising segments, offsetting a temporary downturn in the Game business. While the Game segment saw revenue decline 15% to 29.9 billion yen and operating profit drop 77.8% due to seasonal factors and elevated marketing expenditures, the company maintained a strong financial foundation with 252 billion yen in total assets. This performance establishes a solid trajectory toward meeting full-year targets despite the mixed results across different business units. The Media segment emerged as a significant growth engine, with ABEMA driving a 67% surge in revenue to 20.4 billion yen. This expansion was supported by a premium subscriber base exceeding 921,000 users and an elevenfold increase in transaction volume for the WINTICKET platform. To capitalize on this momentum, the company restructured ABEMA into distinct Free and Premium business units. Simultaneously, the Game business prepared for a recovery through the high-profile launches of titles such as Uma Musume Pretty Derby and NieR Re[in]carnation, signaling a strategic focus on high-quality content to stabilize future earnings. Corporate strategy remains centered on governance and technological adaptation within the Japanese market. The organizational structure utilizes a clear distinction between supervision and execution, supported by a board of eight directors that includes significant outside representation. By emphasizing environmental data disclosure and the integration of artificial intelligence within advertising and media functionality, the company aims to align with modern ESG standards. These initiatives, framed within the context of the New Normal, reflect a commitment to long-term sustainability and operational agility in a rapidly evolving digital landscape.

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CyberAgent experienced exceptional financial growth during the third quarter of fiscal year 2021, covering the period from April to June. Consolidated sales reached 192.2 billion yen, representing a 70.3% year-over-year increase, while operating profit surged more than fivefold to 44.5 billion yen. This performance was primarily catalyzed by the Game business, specifically the massive commercial success of Uma Musume Pretty Derby. The title surpassed nine million downloads within five months of its launch, driving segment sales up by 151.7% and operating profit by over 480%. The success of this intellectual property has further expanded into a multi-media franchise encompassing anime, music, and live events, prompting an upward revision of full-year forecasts to 650 billion yen in sales and 100 billion yen in operating profit. The media segment, led by the streaming platform ABEMA, also demonstrated significant momentum with quarterly sales more than doubling to 10.5 billion yen. Weekly Active Users reached a peak of 14.9 million, supported by high-profile sports broadcasting and original content. A critical component of this segment's monetization strategy is the WINTICKET online betting service, which saw transaction volumes grow 5.5 times year-over-year to 39.3 billion yen through strategic integration with ABEMA’s programming. Beyond current hits, the strategic focus remains on technological innovation and pipeline development. The advertising business reported high adoption rates for AI-driven creative tools, while the gaming division is preparing for future growth with high-profile upcoming titles based on the Final Fantasy VII and Jujutsu Kaisen franchises. These results indicate a robust diversification strategy where high-performing gaming assets and integrated media services drive record-breaking financial outcomes across the Japanese market.

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CyberAgent experienced exceptional financial growth during the second quarter of fiscal year 2021, characterized by a 26.6% year-over-year increase in consolidated sales to 163.4 billion yen and a doubling of operating profit to 25.8 billion yen. This performance was primarily catalyzed by the Game business, which achieved record-high quarterly sales of 63.9 billion yen. The massive success of Uma Musume Pretty Derby, which secured over five million downloads within its first 45 days, served as the primary engine for this expansion. Coupled with the strong performance of titles like NieR Re[in]carnation and a robust pipeline including Final Fantasy VII Ever Crisis, the company significantly upgraded its full-year forecasts, raising sales targets to 600 billion yen and nearly doubling its projected operating profit range. The media segment, centered on the ABEMA platform, demonstrated significant scale despite ongoing operating losses of 3.4 billion yen. Sales for the segment grew 1.4 times year-over-year, reaching 19.8 billion yen, bolstered by the rapid expansion of the online betting service WINTICKET. Transaction volumes for WINTICKET surged 9.1 times annually to 31.9 billion yen, highlighting a successful diversification of revenue streams beyond traditional advertising. Weekly active users remained stable at approximately 12 million, supported by a strategic mix of original dramas, variety content, and anime. To sustain this momentum, the organization is prioritizing digital transformation and cross-media strategies. The Internet Advertisement business reached record-high performance levels, while ABEMA is undergoing a comprehensive user interface redesign to better integrate linear and on-demand viewing. These initiatives, combined with AI-driven operational efficiencies, aim to transition the media segment toward long-term monetization while maintaining the high-growth trajectory established by the gaming and advertising divisions within the Japanese market.

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CyberAgent’s financial performance for the second quarter of fiscal year 2022 reflects a period of robust growth across its core business segments, characterized by consolidated sales of 191.1 billion yen and an operating profit of 25.7 billion yen. This 16.9% year-over-year increase in revenue was primarily fueled by record-breaking performance in the Internet Advertisement division and a significant recovery in the Game business. The gaming sector specifically benefited from high-profile anniversary events for major titles such as Uma Musume Pretty Derby and Granblue Fantasy, which drove quarterly segment sales to 69.0 billion yen and operating profit to 21.3 billion yen. The strategic focus remains centered on leveraging the profitability of advertising and gaming to fund the long-term expansion of the ABEMA media platform. While ABEMA reported a quarterly loss of 1.9 billion yen, its sales grew by 37.9% year-over-year, supported by the rapid scaling of the WINTICKET betting service. WINTICKET achieved a 2.1x increase in transaction volume, capturing 31% of the online Keirin market. To further solidify ABEMA’s market position, the company secured exclusive free broadcasting rights for all 64 matches of the FIFA World Cup Qatar 2022, aiming to transition the platform into a primary profit pillar. Despite the strong quarterly results, the full-year outlook remains cautious, with a projected 32.9% decline in operating profit to 70 billion yen. This forecast accounts for substantial upfront investments in media content and a normalization of the gaming sector following previous peaks. Future growth initiatives include the release of three major RPG titles later in 2022 and continued technological investments to maximize advertising effectiveness. The overall trajectory indicates a transition toward a diversified digital ecosystem where high-margin services subsidize the development of a dominant streaming and entertainment infrastructure.

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1Q FY2022 Presentation Material: October to December 2021

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