CyberAgent : FY2022 Third Quarter Consolidated Financial Results (PDF 241KB)

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

FY2022 Third Quarter Consolidated Financial Results [Japanese GAAP]

			July 27, 2022
Listed company name: CyberAgent, Inc.	Listed stock exchange: TSE Prime Market
Code No.:	4751	URL https://www.cyberagent.co.jp/en/
Representative:	President	Susumu Fujita
Inquiries:	Senior Managing Executive Officer	Go Nakayama	Tel [phone]
Quarterly report submission date: July 28, 2022	Dividend payment start date	－
Preparation of Supplementary Materials for Quarterly Financial Results: Yes

Presentation of Quarterly Financial Results: Yes (live stream only)

(Amounts less than ¥1 million rounded down)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending September 2022

(1) Consolidated results of operations (cumulative)					(% = Year-on-Year Change.)
	Net sales		Operating	Ordinary income	Profit attributable	Comprehensive
		income	to shareholders	income
							of parent
	¥ million	%		¥ million	%	¥ million	%	¥ million	%	¥ million	%
3Q FY2022	534,348	9.8		55,898	(27.9)	56,266	(27.7)	20,701	(37.4)	29,927	(39.8)
3Q FY2021	486,732	36.1		77,513	171.9	77,799	173.3	33,044	462.1	49,738	288.8
	Basic earnings	Diluted earnings
	per share		per share
3Q FY2022				¥		¥
	40.94		38.76
3Q FY2021		65.46		61.97

(Note) The Company conducted a four-for-one stock split of common stocks as of April 1, 2021. The "Basic earnings per share " and "Diluted earnings per share" are calculated assuming that the said stock split was conducted at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial position

	Total assets	Net assets	Shareholders'	Shareholders'
	equity	equity ratio
As of 3Q FY2022	¥ million	¥ million	¥ million	%
374,695	216,683	140,515	37.5
As of FY2021	382,578	194,145	128,883	33.7

2. Dividends

		Annual dividends
	1Q	2Q	3Q		Year end	Total
FY2021	¥	¥	¥		¥	¥
－	0.00	－		11.00	11.00
FY2022	－	0.00	－
FY2022 (Forecast)					14.00	14.00

(Note) Revisions to most recent dividend forecast: No

3. Forecast of the Consolidated Results for the Fiscal Year Ending September 2022 (October 1, 2021 - September 30, 2022)

(% = Year-on-Year Change.)

								Profit attributable to	Basic
	Net sales		Operating income	Ordinary income	earnings per
		shareholders of parent
										share
	¥ million		%	¥ million	%	¥ million	%	¥ million	%	¥
Full year	700,000		5.0	70,000	(32.9)	70,000	(33.1)	25,000	(39.8)	49.43

(Note) Revisions to most recent consolidated earnings forecast:No

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

*Notes

(1) Changes in Significant Subsidiaries during the Period: None

(Changes in specified subsidiaries due to changes in the scope of consolidation)

New : －(Company name:	－)
Excluded : －(Company name:	－)

1. Application of simplified accounting methods and/or special accounting methods: None
2. Changes in accounting policies, changes in accounting estimates, restatements
3. 1. Changes associated with revisions of accounting standards: Yes
   2. Changes other than those included in i) : None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of shares issued

(1) Number of shares issued and outstanding at end of period (including treasury stock)

3Q FY2022:	505,706,400 shares	FY2021: 505,706,400 shares
(2) Number of shares of treasury stock issued and outstanding at end of period
3Q FY2022:	1,004 shares	FY2021: 251,404 shares

(3) Average number of shares during the period (cumulative quarterly period)

3Q FY2022: 505,576,066 shares

3Q FY2021: 504,783,449 shares

(Note) The Company conducted a four-for-one stock split of common stocks as of April 1, 2021. Number of shares issued is calculated assuming that the said stock split was conducted at the beginning of the previous consolidated fiscal year.

*The Consolidated Financial Results is not subject to audit. *Appropriate Use of Earnings Forecast and Other Matters

The forecast of performance is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those listed in this forecast because of various risks and uncertainties. For information related to the forecast indicated above, please refer to "1.Qualitative Information on the Quarterly Financial Results (3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information" on page 2.

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Table of Contents
1. Qualitative Information on the Quarterly Financial Results....................................................................................	2
(1)	Explanation of Consolidated Financial Results................................................................................................	2
(2)	Explanation of Consolidated Financial Position................................................................................................	2
(3)	Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information..............	2
2. Quarterly Consolidated Financial Statements and Key Notes...............................................................................	3
(1)	Quarterly Consolidated Balance Sheets...........................................................................................................	3
(2)	Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of
	Comprehensive Income....................................................................................................................................	4
(3)	Notes to Quarterly Consolidated Financial Statements....................................................................................	5
(Notes Regarding the Going Concern Assumption)...........................................................................................	5
(Notes Regarding Significant Changes in Shareholders' Equity) ......................................................................	5
(Notes Change in Accounting Policies)..............................................................................................................	5
(Segment Information) ......................................................................................................................................	6

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English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Qualitative Information on the Quarterly Financial Summary

(1) Explanation of Consolidated Financial Results

The CyberAgent Group has taken advantage of the growth of the smartphone market. At the same time, the group has been investing in ABEMA, the TV for future, to grow it in the medium to long-term mainstay.

As a result, during the cumulative consolidated third quarter, Net sales grew 9.8% year on year to ¥534,348 million, and Operating income amounted to ¥55,898 million (27.9% decrease). Ordinary income amounted to ¥56,266 million (27.7% decrease), and Profit attributable to shareholders of parent decreased 37.4% to ¥20,701 million.

Earnings by business segments are discussed below.

(a) Media Business

The Media Business includes "ABEMA", "WINTICKET" and "Ameba", etc.

Due to a significant increase in sales of the Pay-Per-View service of "ABEMA" ,the TV for future, and related business, Net sales grew and amounted to ¥81,842 million for the period, a 36.0% year-on-year increase. Operating loss amounted to ¥9,779 million, compared to operating loss of ¥11,215 million for the same period in the prior fiscal year.

(b) Internet Advertisement Business

The Group's Internet Advertisement Business includes Internet Advertisement Division, AI Division, and CyberZ, Inc., etc.

Maintained high sales growth, this segment achieved a record high of Net sales. It reported ¥284,428 million in Net sales, up 19.0% year on year. Operating income gained 7.0%, reaching ¥19,409 million.

(c) Game Business

The Game Business includes Cygames, Inc., Craft Egg, Inc., Sumzap, Inc., and Applibot, Inc. etc.

Due to the impact of the big events etc in the previous quarter, Net sales amounting to ¥173,551 million, a 6.9% year-on-year decrease. Operating income was ¥48,427 million, a 29.4% year-on-year decrease.

(d) Investment Development Business

The Investment Development Business consists of the CyberAgent corporate venture capital business and the fund operations of CyberAgent Capital, Inc. The Investment Development Business recorded Net sales of ¥3,353 million (45.1% year-on-year decrease) and operating income of ¥2,119 million (a year-on-year decrease of 54.0%).

(e) Other Businesses

The Other Businesses segment includes Makuake, Inc., REALGATE INC., Zelvia Co., Ltd. and others.

This segment reported Net sales of ¥19,325 million, a 23.1% year-on-year increase. Operating income amounted to ¥356 million (a year-on-year decrease of 36.6%).

(2) Explanation of Consolidated Financial Position

Total assets at the end of this consolidated third quarter have decreased by ¥7,882 million compared to the end of the previous fiscal year and amounted to ¥374,695 million. It is mainly due to the decrease in Cash and deposits by corporate tax and dividend paid.

Total liabilities have decreased by ¥30,420 million compared to the end of previous fiscal year and amounted to ¥158,012 million. This decrease is mainly due to a decrease in accrued income tax through the payment to corporate tax, etc.

Total net assets have increased by ¥22,537 million compared to the end of the previous fiscal year and amounted to ¥216,683 million. It is mainly due to increase in retained earnings owing to the recording of Profit attributable to shareholders of parent and Non-controlling interests.

(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information

The forecast of FY2022 has not been revised from its original publication on April 27, 2022.

The forecast is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ from those listed in this forecast because of various factors.

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English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

2. Quarterly Consolidated Financial Statements and Key Notes

(1) Quarterly Consolidated Balance Sheets

					(Unit: ¥ million)
				FY2021	3Q FY2022
				(As of September 30, 2021)	(As of June 30, 2022)
Assets
	Current assets
		Cash and deposits	181,451	167,264
		Accounts and notes receivable-trade	75,300	－
		Notes and accounts receivable-trade,and	－	64,395
		contract assets
		Inventories	3,226	3,123
		Sales investment securities	18,969	15,937
		Other	22,832	35,807
		Allowance for doubtful accounts	(130)	(80)
		Total current assets	301,650	286,447
	Non-current assets
		Property, plant and equipment	16,740	19,219
		Intangible assets
			Goodwill	4,957	5,358
			Other	21,484	19,119
			Total intangible assets	26,442	24,478
		Investments and other assets
			Other	37,800	44,622
			Allowance for doubtful accounts	(97)	(99)
			Total investments and other assets	37,702	44,523
		Total non-current assets	80,885	88,220
	Deferred assets	42	27
	Total assets	382,578	374,695
Liabilities
	Current liabilities
		Notes and accounts payable-trade	56,055	57,281
		Short-term loans payable	1,037	3,700
		Income tax payable	29,723	3,201
		Other	53,898	63,875
		Total current liabilities	140,714	128,058
	Non-current liabilities
		Convertible bonds	40,228	20,113
		Long-term loans payable	1,174	3,368
		Accrued long service rewards for	1,851	2,553
		employees
		Asset retirement obligations	1,974	2,106
		Other	2,489	1,812
		Total non-current liabilities	47,718	29,953
	Total liabilities	188,433	158,012
Net assets
	Shareholders' equity
		Capital stock	7,203	7,203
		Capital surplus	11,198	11,729
		Retained earnings	100,794	115,698
		Treasury stock	(67)	(1)
		Total shareholders' equity	119,128	134,629
	Other comprehensive income
		Valuation difference on available-for-sale	9,517	5,644
		securities
		Foreign currency translation adjustments	237	242
		Total other comprehensive income	9,755	5,886
	Subscription rights to shares	1,320	1,624
	Non-controlling interests	63,940	74,543
	Total net assets	194,145	216,683
Total liabilities and net assets	382,578	374,695

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