CyberAgent Reports First Quarter Results; Revenue Up 27%, Net In

CyberAgent Reports First Quarter Results; Revenue Up 27%, Net Income Up 58.3% 
Tokyo, Jan 31, 2013 - (JCN Newswire) -  CyberAgent, Inc. (TSE: 4751), a
Tokyo-based leader in Internet media markets, has announced results for the
first quarter ended December 31, 2012. Net sales reached 40,825 million yen (up
27.0% from the same period of the previous year); operating income reached
1,543 million yen (down 68.6%); ordinary income reached 1,622 million yen (down
66.8%); and quarterly net income reached 3,251 million yen (up 58.3%). 
The number of smartphones shipped in 2012 was 31.1 million (73.3% of overall
shipments), and 35.1 million (80.3% of overall shipments) are forecast to be
shipped in 2013 with the adoption of smartphones continuing at an increased
pace(1).  With the rapid adoption of smartphones, the marketplace for
downloadable content is expanding as well, reaching 1.6 trillion yen in 2012
and forecast to be approximately 2.0 trillion yen by 2017. The social game
market is growing especially rapidly, worth 538.5 billion yen in 2012 and
forecast to grow to 615 billion yen in 2013(2). 
Under such conditions, the Group focused operating resources on smartphone
businesses, with the smartphone community and game SNS "Ameba"
starting in earnest and large scale promotions carried out with television
commercials and transportation advertising.  Business restructuring was also
carried out, making a decision to sell FX businesses (sale completed on January
31). 
1) Consolidated Financial Results for the First Quarter Ended December 31,
2012 


A. Business Results                                 (millions of yen)
------------------------------------------------------------------------
First Quarter Results       12/31/2012        %  12/31/2011       %
------------------------------------------------------------------------
Net Sales                       40,825     27.0      32,146    11.7
Operating Income                 1,543   (68.6)       4,915    38.1
Ordinary Income                  1,622   (66.8)       4,888    40.0
Net Income                       3,251     58.3       2,054    39.7
Net Income/Share(y)                    5,022.10            3,169.23
Diluted Net Income/Share(y)                  --            3,168.14
------------------------------------------------------------------------
B. Financial Position
------------------------------------------------------------------------
Total Assets                            141,522             136,366
Net Assets                               45,770              43,594
Shlders' Eqty Ratio(%)                     30.3                30.6
------------------------------------------------------------------------
C. Dividends
------------------------------------------------------------------------
Year ended                       2013 (Forecast)               2012
------------------------------------------------------------------------
(y)                                       3,500               3,500
------------------------------------------------------------------------
D. Forecast for Fiscal Year 2013
------------------------------------------------------------------------
Year Ending September 30,                  2013              Change
------------------------------------------------------------------------
Net Sales                               170,000                20.5
Operating Income                         10,000              (42.6)
Ordinary Income                          10,000              (41.7)
Net Income                               12,000                40.8
Net Income/Share(y)                   18,535.99                  --
------------------------------------------------------------------------

2) Results by Business Segment 
As of the first quarter of this consolidated accounting period, the division
of the reporting segments has been changed, so for comparisons to the same
period the previous year the values from the previous year have been changed to
follow the new segment divisions. 
(a) Ameba business 
The Ameba business includes Ameba, Ameba Pigg and AMoAd, etc. For this
business, there were large scale promotion activities of approximately 3
billion yen for the smartphone community and game SNS Ameba, and new smartphone
media businesses that were previously part of Internet advertisement agency
business (formerly comprehensive Internet business) were consolidated. 
As a result, net sales totaled 6,561 million yen (up 7.9% from the same period
of the previous year), and we recorded an operating loss of 3,102 million yen
(an operating income of 1,749 million yen in the same period of the previous
year). 
(b) SAP and other media businesses 
The SAP and other media businesses includes CA Mobile, LTD. and SAP (social
game) businesses in our Group companies such as Cygames Inc., Applibot, Inc.,
and Sumzap, Inc. For these businesses, with active expansion of SAP businesses
both domestically and internationally, net sales totaled 15,750 million yen (up
65.6% from the same period of the previous year), and we recorded an operating
income of 1,011 million yen (up 11.2% from the same period of the previous
year). 
(c) Internet advertisement business 
Internet advertisement business includes advertising agency businesses and SEM
(search engine marketing), centered on the Company's internet advertising
business department. For this business, with healthy sales of smartphone
advertising, net sales totaled 18,876 million yen (up 13.4% from the same
period of the previous year), and we recorded an operating income of 1,931
million yen (up 57.3% from the same period of the previous year). 
(d) Investment development business 
Our investment development business includes the Company's corporate
venture capital business, and fund operation in CyberAgent Ventures, Inc. It
discovers, develops and generates value for promising venture companies both
within Japan and in Asian countries. 
In the current business year, due mainly to sales of shares, net sales totaled
889 million yen (up 1,566.3% from the same period of the previous year), and we
recorded an operating income of 628 million yen (an operating loss of 69
million yen for the same period of the previous year). 
(e) FX business 
The FX business includes foreign exchange margin trading in CyberAgent FX,
Inc. In the current business year, although the number of account openings and
deposit accounts increased steadily, net sales totaled 1,896 million yen (down
6.5% from the same period of the previous year), and we recorded an operating
income of 1,074 million yen (down 2.1% from the same period of the previous
year). 
3) Forecast for Fiscal Year 2013 
In this period new smartphone media businesses that were previously part of
Internet Advertisement Agency Business (formerly Comprehensive Internet
Business) were consolidated into Ameba moving towards the success of the
smartphone community and game SNS Ameba, and business restructuring was engaged
in by selling the FX business (selling all CyberAgent FX, Inc. shares). 
For sales, with expanded smartphone fees mainly from Ameba and SAP businesses
as well as the growth of smartphone advertising in Internet advertising 170
billion yen are forecast. 
For operating income, the strategic investment of approximately 3 billion yen
into promoting the Ameba business in the first quarter resulted in a temporary
decrease in income, but in the second quarter onwards the sale of the FX
business and contributions from advertising income and digital item sales from
smartphone lead to a forecast of 10 billion yen operating income for the full
year. 
For net income, extraordinary income from profits selling the FX business and
sales of a portion of Cygames, Inc. shares lead to a forecast 12 billion yen
net income. 
Medium term forecasts of performance results are not given, as the environment
surrounding the Internet is highly variable and the Group's results may
fluctuate significantly in the short term. 
The forecast values indicated above are based upon information available at
this time, and actual results may vary significantly due to a number of
uncertain factors. 
Today, CyberAgent also announced that notice regarding decisions on the
acquisition of treasury stocks, details are here.
 http://www.cyberagent.info/wp-content/uploads/ca/pdf/news/2013/0131_2.pdf 
Notes:
(1) MM Research Institute, Ltd.
(2) Nomura Research Institute, Ltd. 
4) Segment Information 


Current consolidated first quarter (Oct 1, 2012 to Dec 31, 2012)
                                                   (millions of yen)
------------------------------------------------------------------------
               A       B       C       D       E      F       G       H
------------------------------------------------------------------------
Net Sales
(1)Sales to external customers
           4,927  15,547  17,565     889   1,896 40,825      --  40,825
------------------------------------------------------------------------
(2)Intersegment internal sales or transferred amount
           1,634     202   1,311       0      --  3,148 (3,148)      --
------------------------------------------------------------------------
Total      6,561  15,750  18,876     889   1,896 43,974 (3,148)  40,825
------------------------------------------------------------------------
Segment income (loss)
         (3,102)   1,011   1,931     628   1,074  1,543      --   1,543
------------------------------------------------------------------------
A. Ameba business
B. SAP and other media businesses
C. Internet advertisement business
D. Investment development business
E. FX
F. Subtotal
G. Adjustment amount
H. Consolidated quarterly balance sheet amount

 
About CyberAgent, Inc. 
Founded in 1998, CyberAgent, Inc. is a leading Internet company focused on its
smartphone social community and game SNS platform Ameba and has provided many
kinds of businesses in Japan including being the largest social game provider,
the internet Ad, and the corporate venture capital. CyberAgent maintains
operations in the U.S., China, Vietnam, Japan with corporate headquarters
located in Tokyo, Japan. The company generated annual sales of more than $1.6
billion in FY2012 ended September 2012. CyberAgent is listed on the Tokyo Stock
Exchange, Mothers (4751). For additional information on the company and its
offerings, please visit www.cyberagent.info or contact pub@cyberagent.co.jp. 
Follow us! https://twitter.com/#!/CyberAgentInc 
Contact: 
CyberAgent
PR/IR Division
Akiko Kashiwa
Tel: +81-3-5459-0227
E-mail: kashiwa_akiko@cyberagent.co.jp 
Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net 
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