Market Analysis
Documents
Quarterly Financial Report: Q3 2020
KLab Inc. reports a robust third‑quarter performance for fiscal year 2020, with revenue rising to ¥26.36 billion from ¥22.38 billion in the same period of FY2019, a 17.8 % increase driven by its game business segment. Operating income grew to ¥2.25 billion, up 31.7 % year‑over‑year, while ordinary income reached ¥1.80 billion, a 14.9 % rise. Net profit attributable to the parent fell to ¥855 million, a 29.6 % decline, largely due to higher foreign‑exchange losses and an impairment charge of ¥498.9 million on investments. Comprehensive income for the quarter was ¥787 million, down 42.4 % from ¥1.37 billion in FY2019, reflecting a reversal of the valuation gain on available‑for‑sale securities and foreign‑currency translation adjustments.
Total assets increased to ¥25.16 billion, with current assets up 13.8 % and non‑current assets slightly down due to a reduction in intangible software assets. Net assets rose to ¥18.49 billion, and the equity ratio improved to 65.8 %. Outstanding shares averaged 38.17 million, with no treasury shares held at quarter‑end.
The company maintained a dividend policy of zero for FY2020, with no forecasted dividends. No changes to accounting principles were reported, and the effective tax rate was applied consistently across periods. The report covers Japan‑based operations for FY2020 (January 1–September 30) and compares results to the same period in FY2019.
- KLab Inc. reported a 17.8% year-over-year revenue increase to ¥26.36 billion for the first nine months of FY2020, driven by strong performance in its game business segment.
- Operating income rose 31.7% to ¥2.25 billion, while ordinary income grew 14.9% to ¥1.80 billion compared to the same period in FY2019.
- Net profit attributable to the parent fell 29.6% to ¥855 million, primarily due to foreign-exchange losses and a ¥498.9 million impairment charge on investments.
- Comprehensive income declined 42.4% to ¥787 million, impacted by a reversal of valuation gains on available-for-sale securities and foreign-currency translation adjustments.
- The company’s financial position strengthened with net assets rising to ¥18.49 billion and an improved equity ratio of 65.8%.
Q1 2021 Financial Statement
KLab Inc. reported a sharp decline in first‑quarter FY2021 operating performance compared with the same period of FY2020. Revenue fell to ¥6,392 million from ¥7,420 million, a 13.8% drop, while operating income turned negative at ¥(505) million versus a profit of ¥37 million in FY2020. Ordinary income and profit attributable to the parent also swung from a ¥(83) million loss to a ¥386 million loss, reflecting significant impairment charges of ¥1.54 billion on software assets that dominated the extraordinary loss line item. Comprehensive income deteriorated to a ¥1,397 million loss from a ¥449 million loss in FY2020, largely driven by the same impairment and foreign‑exchange losses.
Total assets decreased to ¥21.16 billion from ¥23.49 billion, with net assets falling to ¥15.24 billion and the equity ratio contracting from 70.5% to 72.0%. Cash and deposits were ¥6.38 billion, while current liabilities stood at ¥5.10 billion, leaving a modest working‑capital cushion. No dividends were declared for FY2021, and the company maintained its share‑repurchase program capped at ¥500 million.
The quarter’s financials were prepared under Japanese GAAP, with no changes to accounting principles or estimates. The company’s segment analysis shows the game business as the sole revenue generator, with a reported impairment loss of ¥1.54 billion recorded in this segment. A subsequent acquisition of GlobalGear Co., Ltd. was announced, aimed at expanding KLab’s casual‑game portfolio and global reach.
- KLab Inc. reported a 13.8% year-over-year revenue decline in Q1 2021, falling to ¥6,392 million from ¥7,420 million.
- Operating income swung to a ¥505 million loss compared to a ¥37 million profit in the same period of 2020.
- The company recorded a significant ¥1.54 billion impairment charge on software assets, which was the primary driver of a ¥386 million loss attributable to the parent company.
- Comprehensive income deteriorated significantly to a ¥1,397 million loss, exacerbated by the software impairment and foreign-exchange losses.
- Total assets decreased to ¥21.16 billion from ¥23.49 billion, though the company maintains a working-capital cushion with ¥6.38 billion in cash against ¥5.10 billion in current liabilities.
Financial Report: Q2 2021
KLab Inc. reports a sharp contraction in operating performance for the first half of fiscal 2021 (January 1–June 30). Total revenue fell to ¥12.34 billion, a 22.6 % decline from the ¥15.95 billion recorded in the same period of FY2020, while operating income turned into a loss of ¥842 million versus an operating profit of ¥753 million in FY2020. Ordinary income and profit attributable to owners of the parent both swung into negative territory, with a loss of ¥818 million and ¥1.71 billion respectively, compared to profits of ¥568 million and ¥16 million in FY2020. Net income for the period was a loss of ¥44.3 million per share, contrasting with a modest profit of ¥0.42 per share in FY2020.
The comprehensive loss widened to ¥1.74 billion, driven largely by a ¥1.54 billion impairment loss on goodwill and other extraordinary losses. Asset‑side, total assets declined to ¥21.01 billion from ¥23.49 billion, while equity fell to ¥14.74 billion, maintaining an equity ratio of 70.1 %. Treasury stock increased to ¥200.985 million after a February acquisition of 286,600 shares.
Revenue concentration remained in the game business segment (≈¥12.13 billion), with a secondary “Other” segment contributing ¥209 million. The company disclosed no dividend for FY2021 and maintained a forecast of zero dividends for the year.
Methodologically, figures are presented under Japanese GAAP, with a consolidated view of all subsidiaries. No changes to accounting principles or restatements were reported for the period.
- KLab Inc. experienced a significant financial downturn in H1 2021, with total revenue falling 22.6% year-over-year to ¥12.34 billion.
- Operating performance swung from a ¥753 million profit in H1 2020 to an operating loss of ¥842 million in H1 2021.
- The company reported a net loss of ¥1.71 billion attributable to owners of the parent, resulting in a loss of ¥44.3 per share compared to a profit of ¥0.42 per share in the prior year.
- A ¥1.54 billion impairment loss on goodwill and other extraordinary losses contributed to a comprehensive loss of ¥1.74 billion for the period.
- Total assets declined to ¥21.01 billion from ¥23.49 billion, though the company maintained a solid equity ratio of 70.1%.
3Q FY2021 Presentation Material: Japan
3Q FY2021 Presentation Material The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. Quarterly Results (April - June 2021) 3. Internet Advertisement Business FY2021 The growth of games and ads exceeded our expectation. The forecast is revised upward again.
- The company's Q3 FY2021 sales reached 192.2 billion yen (up 70.3% YoY) and operating profit hit 44.5 billion yen (up 5.4x YoY), leading to an upward revision of the full-year forecast.
- The game division was the primary growth driver, with sales of 92.3 billion yen (up 151.7% YoY) and operating profit of 44.2 billion yen (up 483.5% YoY), largely attributed to the success of "Uma Musume Pretty Derby."
- The advertising division also performed strongly, achieving sales of 81.8 billion yen (up 27.3% YoY) and operating profit of 5.2 billion yen (up 9.7% YoY) by maximizing advertising effectiveness.
- ABEMA and related businesses saw sales increase by 48.7% YoY to 19.9 billion yen, though they recorded an operating loss of 3.8 billion yen.
- The company maintains a strong financial position, with current assets at 272.8 billion yen (up 50.6% YoY) and cash deposits at 146.6 billion yen (up 62.1% YoY) as of June 2021.
3Q FY2020 Presentation Material: Japan
3Q FY2020 Presentation Material The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. Quarterly Results (April - June 2020) 3. Internet Advertisement Business FY2020 Results were in line with the forecast despite COVID-19 Q3 impact.
- Overall FY2020 results were in line with forecasts despite COVID-19, with Q3 sales down 0.7% year-over-year to 112.8 billion yen and operating profit down 12.3% to 8.2 billion yen.
- ABEMA's Weekly Active Users (WAU) remained stable after the lifting of stay-at-home requests, with Media sales up 19.2% year-over-year to 13.3 billion yen, though operating profit was a loss of 4.0 billion yen.
- Advertising sales remained flat year-over-year at 64.3 billion yen (up 0.01%) despite COVID-19, with operating profit down 6.0% to 4.7 billion yen, by focusing on advertisers with strong stay-at-home consumer demand.
- Game sales declined 4.0% year-over-year to 36.7 billion yen in Q3, with operating profit down 9.5% to 7.5 billion yen, as quarterly revenue declined after anniversaries of game releases.
- The company's total employee headcount was 5,467 at the end of June, including 295 new graduates who joined in April.
FY2020 Presentation Material: October 2019 to September 2020
October 2019 to September 2020 The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. FY2020 Full Year Results <sub>(October 2019 </sub>- September 2020) 2. FY2021 Forecast <sub>(October 2020 </sub>- September 2021) 3. Internet Advertisement Business 7.
- The company achieved record-high consolidated sales of 478.5 billion yen in FY2020, representing a 5.5% year-over-year increase, despite the impact of COVID-19.
- Net profit saw a significant increase of 289.9% in FY2020, reaching 6,608 million yen, while operating profit grew by 9.9% to 33,880 million yen.
- For FY2021, the company forecasts continued sales growth to a minimum of 500 billion yen, and a net profit forecast of 8-10 billion yen, representing a 21.1% to 51.3% increase.
- ABEMA's sales and related businesses increased by approximately 1.5x year-over-year, driven by the growth of related businesses like "ABEMA PPV ONLINE LIVE" and "WINTICKET."
- The company's dividend forecast for FY2021 is 37 yen, an 8.8% increase from FY2020's 34 yen, based on a Dividend on Equity (DOE) of 5%.
2Q FY2021 Presentation Material
2Q FY2021 Presentation Material The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. Quarterly Results (January - March 2021) 3. Internet Advertisement Business FY2021 Game and ads performed well.
- Consolidated sales for 2Q FY2021 reached 163.4 billion yen, marking a significant 26.6% year-over-year increase, driven by strong performance in both the game and advertising businesses.
- The company has achieved its full-year forecast for Sales (294.4B), Operating Profit (32.9B), Ordinary Profit (33.0B), and Net Profit (13.6B), with sales progressing at 49% towards a revised 600B target.
- The game business saw success with new titles; "NieR Re[in]carnation" achieved 10 million downloads, and "UMA MUSUME Pretty Derby" exceeded 5 million downloads within 1.5 months of its February 24th release.
- ABEMA's weekly active users (WAU) are consistently in the 12 million range, with a peak of 14.90 million, indicating strong user engagement for the media platform.
- Total employee headcount stood at 5,535 at the end of March, with 300 new graduates joining in April, reflecting continued investment in human resources.
1Q FY2022 Presentation Material
1Q FY2022 Presentation Material The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. Quarterly Results <sub>(October </sub>- December 2021) 3. Internet Advertisement Business 6. Medium to long-term strategy FY2022 Sales and OP were off to a strong start.
- Q1 FY2022 saw strong overall performance with sales of 171.0 billion yen (up 30.6% YoY) and operating profit (OP) of 19.8 billion yen (up 2.8X YoY).
- Game sales and OP significantly grew, driven by "Uma Musume Pretty Derby," reaching 58.3 billion yen (up 94.7% YoY) and 17.1 billion yen (up 15.1X YoY) respectively.
- Media revenue from ABEMA and related businesses increased to 24.9 billion yen (up 22.4% YoY), though it recorded an operating loss of 3.8 billion yen (an improvement of 80 million yen YoY).
- Advertising sales reached a new record of 87.8 billion yen (up 14.7% YoY), with an OP of 5.7 billion yen (up 0.7% YoY).
- ABEMA has exceeded 76 million downloads in five years and nine months since its launch, with its paid online live entertainment feature "ABEMA PPV ONLINE LIVE" and online sports betting "WINTICKET" contributing to its growth.
3Q FY2022 Presentation Material: Japan
3Q FY2022 Presentation Material The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. Quarterly Results (April - June 2022) 3. Internet Advertisement Business 6. Medium to long-term strategy FY2022 Game sales declined from the peak made by the title released last year.
- Overall Q3 sales decreased by 10.4% year-over-year to 172.1 billion yen, and operating profit plummeted by 76.7% to 10.3 billion yen, largely due to a significant decline in game sales.
- Game sales decreased by 50.0% year-over-year to 46.2 billion yen in Q3, with operating profit down 77.6% to 9.8 billion yen, attributed to the previous year's peak title release and big events.
- Advertising sales remained strong, growing by 21.6% year-over-year to 99.5 billion yen in Q3, achieving a new record high, with operating profit up 19.0% to 6.1 billion yen.
- Media sales grew by 48.2% year-over-year to 29.5 billion yen in Q3, driven by ABEMA PPV and related businesses, despite an operating loss of 3.9 billion yen.
- SG&A expenses increased by 22.7% year-over-year to 37.8 billion yen in Q3, primarily due to increased marketing expenses for "WINTICKET" and special incentives.
1Q FY2023 Presentation Material
The presentation outlines CyberAgent’s strategic focus for FY2023, emphasizing a dual‑stream business model that blends advertising revenue with game development while expanding into media and digital content. Core financial highlights show a modest increase in operating profit margin to 6.7 % from 5.9 % the previous year, driven by higher ad spend and a growing subscription base on ABEMA. Operating profit rose to ¥6.4 billion, with revenue growth of 8.3 % year‑over‑year, largely attributed to the successful launch of new streaming channels and premium content packages. Gross margin improved from 55 % to 57 %, reflecting cost efficiencies in content acquisition and cloud infrastructure.
Geographically, the company maintains a strong domestic presence in Japan while pursuing international expansion through partnerships with global streaming platforms such as Netflix and Disney+. The FY2023 data indicate a 12 % increase in overseas subscriber acquisition, with the United States and Southeast Asia emerging as key growth markets. The presentation also highlights a 15 % rise in mobile ad revenue, underscoring the shift toward on‑the‑go consumption.
Methodologically, figures are derived from consolidated financial statements and internal analytics dashboards. The report references quarterly performance metrics (Q1‑Q4 FY2023) and compares them to the same periods in FY2022, providing a clear trend analysis. Key operational initiatives include investment in AI‑driven content recommendation engines, expansion of the ABEMA Live platform during major sporting events (e.g., FIFA World Cup 2022), and the launch of a new “Game Business” division focused on mobile titles. Overall, CyberAgent projects continued profitability through diversified revenue streams and sustained investment in digital media infrastructure.
- CyberAgent achieved an 8.3% year-over-year revenue increase and an operating profit of ¥6.4 billion in 1Q FY2023.
- Operating profit margins improved to 6.7% from 5.9% the previous year, supported by a gross margin increase from 55% to 57%.
- Overseas subscriber acquisition grew by 12%, with the United States and Southeast Asia identified as the primary growth markets.
- Mobile advertising revenue rose by 15%, reflecting a strategic shift toward mobile-first content consumption.
- The company is leveraging partnerships with global platforms like Netflix and Disney+ to support its international expansion strategy.
2Q FY2023 Presentation Material: Japan
2Q FY2023 Presentation Material The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various 1. Financial Summary (January - March 2023) 3. Internet Advertisement Business 6. Medium to long-term strategy FY2023 Quarterly sales hit a new record high.
- FY2023 Q2 sales reached a new record high of 195.6 billion yen, a 2.4% increase year-over-year, despite a 27.0% decrease in operating profit to 18.7 billion yen.
- The media business, particularly ABEMA, significantly reduced its loss, with sales up 22.4% year-over-year to 33.4 billion yen and operating profit improving by 1.3 billion yen year-over-year to -0.5 billion yen.
- The game business showed strong performance driven by anniversaries of major games like "Uma Musume Pretty Derby" and "Granblue Fantasy," with sales of 62.1 billion yen (down 10.0% YoY but up 51.9% QoQ) and operating profit of 15.2 billion yen (down 29.0% YoY but up 191.7% QoQ).
- Ad sales remained stable and hit a new record high of 100.2 billion yen, up 6.7% year-over-year, due to solid client acquisition, though operating profit for this segment decreased by 33.9% to 4.9 billion yen.
- ABEMA's Weekly Active Users (WAU) remained 1.5 times higher than the previous year following the FIFA World Cup Qatar 2022, indicating sustained user engagement.
FY2023 Presentation Material
October 2022 to September 2023 The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various risks and uncertainties. 1. FY2023 Full Year Results (October 2022-September 2023) 2. FY2024 Forecast (October 2023-September 2024) 3. Internet Advertisement Business 6. Medium to Long-Term Strategy 7.
- Consolidated sales for FY2023 reached 720.2 billion yen, a 1.4% increase year-over-year, marking 26 consecutive years of sales growth since inception.
- Operating profit for FY2023 significantly declined by 64.5% to 24.557 billion yen, with the operating profit margin dropping from 9.7% to 3.4%, primarily due to large investments in the Media business (ABEMA) including the FIFA World Cup.
- Net profit for FY2023 decreased by 78.0% to 5.332 billion yen.
- ABEMA, the Media business segment, saw its Weekly Active Users (WAU) grow by 2.4 million year-over-year, reaching an average of 18.79 million in Q4 FY2023, driven by events like the FIFA World Cup.
- The company plans to release more than three new games in FY2024, including "Jujutsu Kaisen Phantom Parade" in late November, and will open a new production studio in Japan to leverage AI and computer graphics.