CyberAgent, Inc. (TYO:4751)
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May 7, 2026, 3:30 PM JST
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Earnings Call: Q2 2022

Apr 27, 2022

Operator

It is time, so we would like to begin CyberAgent's earnings briefing for FY 2022's second quarter. This session is being live streamed. Please refer to the disclaimer indicated in the presentation material with respect to the content shared with you today. Our CEO, Fujita, will take you through the results.

Susumu Fujita
CEO, CyberAgent

This is the CEO, Fujita. I would like to take you through the FY 2022, January to March second quarter, earnings results. First of all, overall, for the most part, our business has performed strongly, is doing well. There's not really anything to say in particular that there's nothing really noteworthy for this quarter. Overall, our sales increased by 16.9% year-on-year. We launched Umam usume last year in the second quarter, but the OP is nearly the same as the previous year, same quarter.

Revenues from other amount related businesses increased significantly, so the profitability has improved. With respect to the app business, sales and OP reached a new record high this quarter. With respect to games, we did have successful anniversaries. Therefore, sales and OP grew Q-on-Q. This is the consolidated sales. After Umam usume released, there was a boom following the release. This quarter, there were some concern expressed about the impact from that, but we performed strongly. The OP is not the highest, it's the second highest in the past, so it's nearly on the same level as the second highest OP. The SG&A is JPY 37.1 billion. We spent a little bit more on marketing expenses.

There's nothing else in particular that should be mentioned with respect to SG&A. The total head count currently is 6,267 at the end of March. As of April 1st, we will be welcoming 349 new graduates. The next quarter you will see a jump in the number of employees. This is the profit and loss statement. The balance sheet is here. We have JPY 170 billion in terms of cash deposits as an entire group. We have also announced annual forecast. We haven't announced this in the past. Now that we're past the first half of the year, we know where our business is heading, so we have estimated the next half of the year.

The total for this year comes out to be JPY 700 billion, OP is JPY 70 billion. Umam usume was released last year, and we want to overcome the impact from that and achieve a soft landing. As you can see, the top line, you can see that it significantly jumped last fiscal year. Until then, we had a steady increase. We went from JPY 480 billion to JPY 660 billion or JPY 670 billion last year. We would like to continue to grow all of our business and achieve a soft landing. This is the detailed forecast. We want to do a net profit of JPY 25 billion. This is the progress to date achievement rate. Sales is 51.7%, so we've done a little bit more than half.

With respect to operation and ordinary profit is around 65%. We are quite confident that we will be able to achieve the forecast that we have shared with you. Now going forward, I would like to take you through the performance of each individual business. As I mentioned before in the beginning, internet app business is doing very well, so we've achieved record sales. Likewise, the OP was also a record high. Not only have we achieved record high sales, but we have invested, made upfront investments in AI and DX. We are making upfront investments in DX, especially in terms of collaborative DX. We are working together with strong big companies. We have alliances with large enterprises.

If these produce results, we believe that this will grow into another large revenue stream. This is something that I say each time. We have the technology and also the operational capability, and that enables us to maximize advertising effectiveness. This might seem normal, but we are able to grow stably because of these strengths for many years. Moving on to the game business, we released a huge hit last year, so of course it's been quite difficult to handle the situation since. But this quarter, we had an anniversary for Umam usume, the first anniversary for Umam usume, and also a Granblue Fantasy anniversary this year as well. This also contributed to the growth quarter-on-quarter. OP as well, we were able to achieve JPY 21 billion in OP.

With respect to Umam usume, we've achieved more than 14 million downloads so far. Last year it was very popular, but after one year, it's still we still have a very strong support from the audience. From April 10 th, we launched a new TV commercial, and it's still on air. It's generated a lot of buzz. This is going to generate buzz and therefore we're seeing strong support for the property, the game. Going forward, we will be releasing Final Fantasy and Jujutsu Kaisen. We have great expectations for these games. We plan to release these games within the year. Moving on to the media business. Media business as well doing well. Top line is growing, of course, steadily. Also the operating losses have improved likewise.

We're not in the black yet. We're still making upfront investments. However, the situation is improving or it's growing steadily. ABEMA, we're making upfront investments, and you can see that it's growing very nicely. Especially these are some of the popular titles. This fiscal year we started airing the new series of Demon Slayer, so that's very popular. We Got Married, this is our original title, and that became a huge hit as well. We also have different news programs as well, so that's also helping the viewership. Having said that, we didn't have major events this quarter, but even after COVID, we have continued to grow very strongly. Recently, we have started airing MLB as well. It did support the growth last year, last fiscal year, and it also started again.

Compared to the last season, we're seeing viewership increase by 1.7x . In June, we will have Tenshin Nasukawa versus Takeru. This is a very high-profile match or fight between these two, and this will be aired, offered as pay-per-view. We will have that event happening in June. Also, if you buy a new Amazon Fire TV series, you will see the ABEMA button on those devices' remote controls. We will be available on even more devices as well. If you buy a new TV, most of all new TVs will come with an ABEMA button on the remote control. We believe that we are well equipped to extend viewership through TV as well.

Related to that, we announced this the other day, but November, FIFA World Cup Qatar will be taking place, and we will be airing all 64 matches live and for free on ABEMA. Of course, World Cup is an, the number one content, global content. By airing this, we believe that this will contribute significantly to the recognition and awareness of ABEMA and its growth. Ahead of the World Cup, we are using a lot of development resources for this, to air this content. We want to actually offer very high-quality resolution similar to the level offered through, BS programs as well. We have a time shift as well as on-demand replay, various functionality as well to provide the one-of-a-kind viewing experience.

We believe that people who watch ABEMA, who watch these games on ABEMA will feel that they, it is truly a unique experience, a truly great experience. In terms of sales, we've increased sales for ABEMA for all these different areas, advertising, as well as the other properties, pay-per-view, and especially Keirin, online sports betting WINTICKET has grown at an accelerated pace. Within the Keirin channel, we have original program, Midnight Keirin, which airs, and this is helping to push this growth. The Keirin market is actually growing recently by 1.3x . Even though the market is growing, we've also managed to grow our market share to 31%. Of course, we were latecomers, and we started from zero, from scratch, this WINTICKET capability, but our market growth is currently at 31%.

There's a strong affinity between ABEMA and WINTICKET, and we believe that we're able to compete with other players. We've shown, proven that. This is something that I've said for a long time, but we are going to have advertising subscription business and also expand the related businesses as well. We will accelerate our monetization efforts. This I also say often, quite have said many times as well, but with respect to media, we will continue to grow and invest in ABEMA. Also continue to run the advertising business and game business and make sure that we can actually release, generate a new revenue stream. In the past, we've actually invested in the smartphone business or video content business, and we want to make the new businesses more sustainable.

Currently, we have advertising business and game business, and there are profits that we receive from those businesses. We are investing in the media business, so it will become a stable revenue source in the future. We are aiming to become a company with medium to long-term supporters. That's it, for my presentation. Thank you very much.

Operator

This concludes CyberAgent's FY 2022 second quarter earnings briefing. If you should have any questions, please contact the IR team. Thank you very much for joining us today.

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