1Q FY2023 Presentation Material: October to December 2022

This financial analysis covers the first quarter of the 2023 fiscal year, specifically the period from October to December 2022. The data reflects the performance of a diversified digital conglomerate operating across internet advertising, mobile gaming, and media services. The primary focus of the period was the strategic integration of the FIFA World Cup Qatar 2022 into the ABEMA media platform, which served as a significant driver for user acquisition and brand visibility.

Financial results show a consolidated quarterly revenue of 191.1 billion yen, maintaining a steady trajectory compared to the previous year's peak of 192.2 billion yen. However, operating profit for the quarter was 5.2 billion yen, representing a decline in operating margin to 5.2%. This compression is attributed to heavy front-loaded investments in the media segment and increased personnel costs, which rose to 25 billion yen. The advertising business remains the primary profit engine, generating 95.6 billion yen in quarterly sales, while the game business contributed 40.9 billion yen.

The media segment experienced a transformative surge due to the World Cup, with weekly active users peaking at over 30 million. Data indicates a diverse viewing demographic, with 44% of users being female and 31% falling in the 20-34 age bracket. The event also accelerated the adoption of large-screen viewing, with television-based streaming accounting for 24% of the device breakdown. While the media segment reported an operating loss of 9.3 billion yen due to content acquisition and infrastructure costs, the company views this as a long-term investment to establish its platform as a "television of the future" and social infrastructure.

The company’s medium-to-long-term strategy involves using the accumulated profits from the established advertising and gaming businesses to fund the growth of the media segment. This includes expanding into peripheral areas such as the WINTICKET betting service, which saw transaction volumes reach 88.9 billion yen, and increasing investments in high-quality original content and global animation projects.