CyberAgent, Inc. (TYO:4751)
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Sep 14, 2026, 3:30 PM JST
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Earnings Call: Q1 2021

Jan 27, 2021

Speaker 2

This time, we would like to begin CyberAgent's FY 2021 Q1 results briefing. This results briefing session is being live-streamed. With respect to the briefing content today, please refer to the disclaimer included in the presentation material. CEO Susumu Fujita will take you through the results.

Susumu Fujita
CEO, CyberAgent

This is Fujita. We would like to go over the FY 2021 Q1 results. Our fiscal year ends at the end of September. This quarter covers from October 1st to end of December. Overall, if you look at the results, we have done well. We have had a great start, but if we break that down, the advertising and media, as you can see, has done very well. However, game temporarily has not performed as well. Overall sales was a record high, t his is by quarter. As you can see, the first quarter, we reached the record high.

The consolidated OP, as I mentioned before, the game business, the profits decreased temporarily, but we were able to offset the decrease with the investment development business, and the ad and media business did well, so we landed at JPY 7 billion. In terms of SG&A, the first quarter, WINTICKET and game business, we spent marketing expenses on these two games and tickets. However, the expenses were basically flat, so no significant change since the last quarter. In terms of the number of employees this quarter was also flat as well, no major change. This is the P&L, i t's quite straightforward. Balance sheet as well, there's nothing extraordinary worth mentioning. The FY 2021 forecast, we just began this fiscal year, but this is the forecast that we have for our business performance. Against this forecast, we're off to a pretty good start.

The second quarter, we should be going back to our normal speed without the investment development business impact. Now moving on to the individual businesses, first starting with the internet advertising. With this segment, we have performed well. E ven amid COVID, we have reached a record high in the first quarter, t he OP was JPY 5.7 billion. Kiwami Prediction AI, we released a service. We have Kiwami Prediction AI, Prediction TD as well we released recently, t his is going to be a strength for us in the advertising business. What this does is to measure the effect of forecasting, and we can change the creative in real time to optimize its effectiveness, and COVID-19 proved to be a tailwind for this business as well.

There are various elements, but we excel in operations and technologies, which are proving to be great weapons for maximizing advertising effectiveness. We hope to continue to expand our market share in this area. Moving on to the game business. As I mentioned before, we are temporarily facing hardships, mainly because in the first quarter, there are some seasonal factors. If you look at our track record, you can see that our performance tends to be lower in the first quarter. We actually are facing challenges in operations and also the titles that we had expectations in, we didn't see the results that we had hoped for. In January, we've seen all of this go back to normal, w e're recovering. Also, in addition, in February, we are going to be releasing a huge title for us.

We believe that this trend is temporary. This is the OP, it has come down significantly. The big title that we will be releasing, we have invested quite a significant amount over the last couple of years, we will be releasing a new game on February 18th, NieR Reincarnatio n. February 24th, the long-awaited Umamusume will also be released as well. We have two major titles being released next month. Depending on how well these launch and trend, our game business performance could change significantly. In terms of other upcoming titles, we have this line of lineup at the moment; IDOLY PRIDE, we released the animation the other day, we've seen a great start, i t's off to a good start. We are going to be also releasing a game for the same content. Moving on to the media business, i t has grown significantly.

ABEMA-related businesses performed well, so that's the key contribution to this business. Pay-per-view on WINTICKET, which is a bicycle racing, auto racing, they both performed well. These contributed to the media business. In terms of the operating loss, we have significantly reduced this as well. It's been nine months since we launched ABEMA, but we've seen a shift in downloads. We're doing well in terms of downloads, and the weekly active users is also increasing as well. The WAU right now is around 12 million, so it has remained around that level, i t's going steady. In terms of the premium subscribers, we were trying to reach 1 million, but it's slightly below this target. I will explain later how we have changed the organization to enable us to do better. In any case, we're growing well.

Underdog, it's our very first movie, and we won four awards. Also the hit content, You Can't Fool Me, Mr. Wolf, but we have premium member-only special content as well. We weren't able to introduce many content exclusive to premium membership, but we would like to continue to do so to enforce our efforts. We also had many live concerts in December. LDH, EXILE, Momoclo, Masaharu Fukuyama, Porno Graffitti, Southern All Stars. These are all very famous artists in Japan, but we had great live concerts on our platform, and it was within the year. Even after January, the artists and their management companies did not know what they would like to do in the 2021 onwards, but they decided to continue to offer concerts online because of the state of emergency that has now been issued again.

We believe that the online live concerts should continue for some time. WIN TICKET has done very well in the recent months, and we're already in the black, making profit, but in the first quarter, we had lots of TV commercials and done a lot of promotions, so it's a little bit lower. Over the fiscal year, we believe that we launched it from scratch, but I think we believe that this will continue to contribute to our performance overall. I mentioned about the organizational change, because the premium membership, we weren't able to hit the target by the end of December. ABEMA used to do TV and video, and it's a free and also paid service as well. We have both free users and premium users, so it was hard to categorize us. Were we TV or were we pay-per-view?

We decided to split the organization into two. The free business unit will focus on TV businesses, and premium business unit will focus on the business model such as Netflix and Amazon Prime. We divided our organization into two, and the free business unit will continue to track WAU, and to increase WAU and monetize ads, and p remium business unit will focus on increasing premium users with exclusive content. We have begun to run ABEMA with these two different business units. I say this every time, but ABEMA, we started as a free service, and we wanted to monetize after we hit 10 million WAU, n ow we're at 12 million. We have advertising, subscription, and other services such as WINTICKET. These are related businesses that we want to continue to add and grow.

It's going to take some time, but we hope to continue to grow this into a key business pillar over the mid to long term. For FY 2021, we want to grow a large media business. While media and ad businesses do well, w e will continue along this path, and t hat is it for myself. Thank you very much for joining us today. T his concludes our FY 2021 first quarter results briefing. If you should have any questions, please contact the IR representative. Thank you for watching today.