CyberAgent

3Q FY2022 Presentation Material

CyberAgent’s financial performance for the third quarter of fiscal year 2022 reflects a strategic transition period characterized by a 10.4% year-over-year decline in consolidated sales to 172.1 billion yen. This contraction was primarily driven by a 50% revenue drop in the Game business, which faced difficult comparisons against the previous year’s peak performance of major titles. Consequently, quarterly operating profit fell 76.7% to 10.3 billion yen. Despite these headwinds, the company maintained its full-year sales forecast of 700 billion yen and increased its dividend projection to 14 yen, signaling confidence in its diversified business model and long-term growth trajectory. The Internet Advertisement and Media segments emerged as significant growth drivers during this period. The Advertisement business achieved record quarterly sales of 99.5 billion yen, while the Media segment grew by 48.2%, bolstered by the expansion of ABEMA. The media platform reached 81 million downloads and generated record-breaking pay-per-view revenue from high-profile events such as THE MATCH 2022. Additionally, the related WINTICKET business saw transaction volumes surge to 200.7 billion yen. In the Game segment, while revenue normalized, Uma Musume Pretty Derby surpassed 15 million downloads and successfully expanded into the Korean and Chinese markets, demonstrating the enduring value of core intellectual properties. The overarching corporate strategy focuses on utilizing stable profits from the Game and Advertisement sectors to fund the evolution of ABEMA into a primary long-term profit pillar. This approach is complemented by an aggressive expansion into the Digital Transformation sector through strategic partnerships with major financial and telecommunications firms. By prioritizing technological innovation and market share expansion, the company aims to overcome temporary stagnation and establish a sustainable ecosystem across the digital entertainment and advertising landscapes.

market-analysis investment japan+1

CyberAgentJul 2022

2Q FY2022 Presentation Material: January to March 2022

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.

market-analysis advertising marketing+1

CyberAgentApr 2022

FY2022 Second Quarter Consolidated Financial Results (Japanese GAAP)

CyberAgent achieved significant financial growth during the second quarter of fiscal year 2022, characterized by a 23.0% year-on-year increase in net sales to ¥362,192 million and a 38.2% rise in operating income to ¥45,527 million. This performance was primarily anchored by the Game Business, which experienced a 58.2% surge in operating income driven by high-profile anniversary events for major titles. Simultaneously, the Internet Advertisement Business reached record-high performance levels, further stabilizing the company’s revenue base. While the Media segment, centered on the ABEMA platform, reported a loss of ¥5,804 million, this reflects a deliberate strategy of medium-to-long-term investment to scale the service. The geographic focus remains centered on the Japanese market, with results reflecting the implementation of new revenue recognition standards. These accounting changes shifted the timing of game item charge recognition to align with estimated usage periods, though the overall impact on consolidated sales and segment income remained minor. Despite the robust quarterly figures, management maintains a conservative outlook for the remainder of the fiscal year, anticipating a potential pullback in gaming profits as the immediate impact of major events stabilizes. The financial data reveals a stark contrast between the high-earning Game segment, which contributed ¥38,529 million in income, and the strategic losses incurred in the Media division. This disparity underscores a corporate strategy that utilizes the high margins of the gaming and advertising sectors to fund the expansion of digital media infrastructure. Overall, the results demonstrate a strong competitive position in the Japanese digital entertainment and advertising landscapes, supported by diversified revenue streams and a commitment to long-term platform growth.

investment japan market-analysis+1

CyberAgent, Inc.Apr 2022

FY2022 First Quarter Consolidated Financial Results (Japanese GAAP)

CyberAgent’s consolidated financial results for the first quarter of the fiscal year ending September 2022 reveal a period of significant growth, primarily driven by a surge in the game business. For the three-month period ending December 31, 2021, net sales reached ¥171,090 million, a 30.6% increase year-on-year. Operating income saw a substantial rise of 180.6% to ¥19,804 million, while profit attributable to shareholders of the parent grew by 107.9% to ¥6,091 million. The game business was the primary catalyst for this performance, reporting a 94.7% increase in net sales to ¥58,329 million and a 1,405.7% increase in operating income to ¥17,130 million, largely due to a successful title launched in early 2021. The internet advertisement business also achieved record-high net sales of ¥87,831 million. Conversely, the media business, which includes ABEMA, reported an operating loss of ¥3,840 million as the company continues to invest in the platform for long-term growth. The investment development business experienced a decline, with operating income falling 57.5% year-on-year. Geographically focused on the Japanese market, the report notes a change in accounting policies following the adoption of the Accounting Standard for Revenue Recognition. This shift affects how in-game currency and item charges are recorded, though the immediate impact on profit and loss is described as minor. Despite the strong quarterly performance, CyberAgent has refrained from providing a full-year consolidated earnings forecast for fiscal 2022. This decision is attributed to the inherent volatility of the game business, where performance is highly dependent on the timing of new launches and the operational status of existing titles, making reasonable calculations difficult at this stage.

CyberAgent, Inc.Jan 2022

market-analysis advertising game-publishing+1

1Q FY2022 Presentation Material: October to December 2021

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.

CyberAgentJan 2022

market-forecast monetization advertising+1

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.

CyberAgentOct 2021

FY2021 Consolidated Financial Results [Japanese GAAP]

CyberAgent, Inc. achieved exceptional financial growth during the 2021 fiscal year, characterized by record-breaking performance across its primary business segments. Consolidated net sales rose 39.3% to ¥666,460 million, while operating income experienced a dramatic surge of 208.1%, reaching ¥104,381 million. This momentum was largely fueled by the Game Business, which saw net sales increase by 68.6% and operating income jump 217.9% to ¥96,445 million, primarily due to the massive success of a major new title. The Internet Advertisement and Media businesses also contributed to these record highs, resulting in a nearly fivefold increase in net income to ¥66,671 million. The company’s financial position strengthened considerably over this period, with total assets expanding to ¥382,578 million and cash and cash equivalents rising to ¥184,082 million. Robust operating cash flows of ¥109,609 million provided the liquidity necessary to fund investment securities and subsidiary acquisitions while supporting a four-for-one stock split and an increased dividend of ¥11.00 per share. Profit attributable to shareholders rose from ¥6,608 million to ¥41,553 million, reflecting a significant leap in basic earnings per share from ¥13.10 to ¥82.30. Despite this historic profitability, management has opted to withhold financial forecasts for the 2022 fiscal year. This decision stems from the inherent volatility of the gaming industry, where the timing and performance of new launches remain difficult to predict. While the Game Business currently serves as the primary engine for growth and capital accumulation, the company remains focused on balancing these high-risk, high-reward cycles with the steady expansion of its advertising and media infrastructure to ensure long-term stability.

CyberAgent, Inc.Oct 2021

market-analysis monetization advertising+1

Supporting Document: Quarterly Transition by Business Segment

Financial performance data for the fiscal years 2019 and 2020 reveals a period of significant growth and operational scaling across multiple business segments, including media, gaming, internet advertising, and investment development. The data covers the full four quarters of FY2019 and the first two quarters of FY2020, providing a comparative look at quarterly transitions in sales, operating profit, and operating profit margins. Total sales increased from 453.6 billion yen in FY2019 to 244.8 billion yen in just the first half of FY2020, indicating a strong upward trajectory. The internet advertisement business remains the largest revenue driver, generating 256.6 billion yen in FY2019 and reaching 140.1 billion yen by the midpoint of FY2020. While the media business continues to operate at a loss as it scales, its operating profit margin improved from negative 40.9% in the first quarter of FY2019 to negative 30.7% by the second quarter of FY2020. In contrast, the game business serves as a primary profit engine, showing substantial margin expansion. Game segment operating profit rose from 3.2 billion yen in the first quarter of FY2019 to 10.4 billion yen in the second quarter of FY2020, with margins climbing from 8.8% to 23.3% in that same period. Overall profitability has strengthened significantly over the tracked timeframe. Total operating profit for the first half of FY2020 reached 20.2 billion yen, which is approximately 65% of the total profit recorded for the entire previous fiscal year. This growth is underpinned by the combined performance of the advertising and gaming sectors, which offset the planned investment losses in the media segment. The investment development business remains highly volatile, with margins fluctuating between 90.2% and negative 231.6% depending on the timing of asset realizations.

CyberAgentOct 2021

market-analysis advertising game-publishing+1

3Q FY2021 Presentation Material: April to June 2021

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.

CyberAgentJul 2021

FY2021 Third Quarter Consolidated Financial Results (Japanese GAAP)

CyberAgent’s consolidated financial results for the third quarter of fiscal year 2021, ending June 30, 2021, reveal a period of significant growth and upward momentum. Net sales reached ¥486.7 billion, a 36.1% increase year-on-year, while operating income surged by 171.9% to ¥77.5 billion. Profit attributable to shareholders of the parent saw the most dramatic rise, increasing 462.1% to ¥33.0 billion. This performance was driven primarily by the Game Business and the Internet Advertisement Business, leading the company to revise its full-year earnings and dividend forecasts upward. The Game Business served as a primary growth engine, with net sales rising 59.5% to ¥186.3 billion and operating income jumping 196.4% to ¥68.6 billion, largely due to the significant contribution of a new game title. The Internet Advertisement Business also achieved record-high net sales of ¥239.1 billion, up 17.0%, benefiting from a steadily expanding smartphone advertising market. While the Media Business, including ABEMA, reported an operating loss of ¥11.2 billion, this represented an improvement over the previous year’s loss as the company continues to invest in the platform as a long-term strategic pillar. Geographically focused on the Japanese market, the results reflect a cumulative nine-month period. The company’s financial position strengthened, with total assets increasing to ¥343.7 billion, supported by a four-for-one stock split executed in April 2021. Based on these results, CyberAgent raised its full-year sales forecast to ¥650 billion and its operating income forecast to ¥100 billion. The company also increased its year-end dividend forecast to ¥11 per share to maintain a Dividend on Equity (DOE) ratio of 5% or more, signaling confidence in its continued capital efficiency and business growth.

CyberAgent, Inc.Jul 2021

FY2021 Second Quarter Consolidated Financial Results (Japanese GAAP)

CyberAgent experienced substantial financial expansion during the first half of fiscal year 2021, characterized by a 20.3% increase in net sales to ¥294.5 billion and a 62.8% surge in operating income to ¥32.9 billion. This growth trajectory was primarily fueled by record-breaking performance in the Internet Advertisement Business and a transformative period for the Game Business. The gaming segment saw net sales reach ¥93.9 billion, while segment income rose to ¥24.3 billion, representing a 56.5% increase in operating income following the successful market entry of two major new titles. These gains effectively offset continued strategic investments in the ABEMA media platform, demonstrating the company's ability to balance long-term ecosystem development with immediate profitability. The robust financial results prompted an upward revision of full-year earnings and dividend forecasts, with the year-end dividend set at 10 yen per share to uphold a Dividend on Equity ratio of at least 5%. Profit attributable to owners of the parent more than doubled to ¥13.7 billion, reinforcing a strong consolidated balance sheet that features over ¥100 billion in cash and total assets of ¥300.4 billion. To further enhance market accessibility and share liquidity, a four-for-one stock split was implemented in April 2021, bringing the total number of issued shares to 505.7 million and necessitating adjustments to the conversion prices of outstanding convertible bonds. Geographically focused on the Japanese market during the second quarter of the 2021 fiscal year, the findings highlight a period of high operational efficiency and successful product launches. The synergy between the established advertising business and the high-margin gaming division has provided the capital necessary to sustain heavy investments in intangible assets and securities. This strategic positioning suggests a transition toward a more diversified digital entertainment and media conglomerate, supported by a solid financial foundation and a commitment to shareholder returns through both dividends and improved stock liquidity.

CyberAgent, Inc.Apr 2021