CyberAgent : FY2025 First Half Consolidated Financial Results

About this update from Cyberagent Incorporated

FY2025 First Half Consolidated Financial Results [Japanese GAAP] May 15, 2025 Listed company name: CyberAgent, Inc. Listed stock exchange: TSE Prime Market Code No.: 4751 URL https://www.cyberagent.co.jp/en/ Representative: Representative Director CEO, President Susumu Fujita Inquiries: Senior Managing Executive Officer Go Nakayama Tel +81-3-5459-0202 Semi-annual report submission date: May 15, 2025 Dividend payment start date - Preparation of Supplementary Materials for Financial Results: Yes Holding the briefing of financial results: Yes (streaming only) ‌(Amounts less than ¥1 million rounded down) Consolidated Financial Results for the First Half of the Fiscal Year Ending September 2025 Consolidated results of operations (cumulative) (% = Year-on-Year Change.) Net sales Operating income Ordinary income Net income attributable to owners of the parent Comprehensive income ¥ million % ¥ million % ¥ million % ¥ million % ¥ million % 1H FY2025 421,214 3.4 29,169 9.7 29,178 8.0 15,863 74.2 19,650 35.2 1H FY2024 407,444 12.3 26,595 61.4 27,028 60.6 9,105 346.5 14,537 100.0 Basic earnings per share Diluted earnings per share ¥ ¥ 1H FY2025 31.32 29.54 1H FY2024 17.98 16.54 Consolidated financial position Total assets Equity Shareholders' equity Shareholders' equity ratio ¥ million ¥ million ¥ million % As of 1H FY2025 520,288 262,428 162,903 31.3 As of FY2024 516,686 250,504 155,634 30.1 ‌Dividends Annual dividends 1Q 2Q 3Q Year end Total ¥ ¥ ¥ ¥ ¥ FY2024 - 0.00 - 16.00 16.00 FY2025 - 0.00 FY2025 (Forecast) - 17.00 17.00 (Note) Revisions to most recent dividend forecast: None ‌Forecast of the Consolidated Results for the Fiscal Year Ending September 2025 (October 1, 2024 - September 30, 2025)‌ (% = Year-on-Year Change.) Net sales Operating income Ordinary income Net income attributable to owners of the parent Basic earnings per share ¥ million % ¥ million % ¥ million % ¥ million % ¥ Full year 820,000 2.3 42,000 4.8 42,000 5.8 21,000 31.4 41.46 (Note) Revisions to most recent forecast: None. ‌*Notes (1) Significant changes in the scope of consolidation during the period: None New : － (Company name: － ) Excluded : － (Company name: － ) (2) Application of simplified accounting methods and/or special accounting methods: None ‌Changes in accounting policies, changes in accounting estimates, restatements i) Changes associated with revisions of accounting standards: Yes ii) Changes other than those included in i) : None iii) Changes in accounting estimates: None iv) Restatements: None ‌Number of shares issued (1) Number of shares issued and outstanding at end of period (including treasury stock) 1H FY2025: 506,480,000 shares FY2024: 506,344,400 shares (2) Number of shares of treasury stock issued and outstanding at end of period 1H FY2025: 1,098 shares FY2024: 1,098 shares (3) Average number of shares during the period (cumulative for the first half) 1H FY2025: 506,416,928 shares 1H FY2024: 506,225,993 shares *The Consolidated Financial Results for the First Half 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. Results of Operations (3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information" on page 2. Table of Contents Results of Operations 2 Overview of Results of Operations during the Period 2 Overview of Financial Position during the Period 2 Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information 2 Consolidated Interim Financial Statements and Key Notes 3 Consolidated Interim Balance Sheets 3 Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive Income 4 Consolidated Interim Statements of Cash Flows 6 Notes to Consolidated Interim Financial Statements 7 (Notes Regarding Changes in Accounting Policies) 7 (Notes Regarding Segment Information) 7 (Notes Regarding Significant Changes in Shareholders' Equity) 8 (Notes Regarding the Going Concern Assumption) 8 ‌Results of Operations ‌Overview of Results of Operations during the Period The CyberAgent Group is expanding its business around "ABEMA", a new TV of the future, which was launched in 2016. Recently, the IP business with a multimedia franchise strategy has been growing rapidly in Japan and worldwide. For this reason, the group is also working to strengthen its IP business which has a high affinity with "ABEMA", while capturing the growth of internet advertising and the gaming markets. As a result, during the first half of the current fiscal year, Net sales grew 3.4% year on year to ¥421,214 million, and operating income amounted to ¥29,169 million (9.7% increase). Ordinary income amounted to ¥29,178 million (8.0% increase), and net income attributable to owners of the parent increased 74.2% to ¥15,863 million. Earnings by business segments are discussed below. The classification of reportable segments has been changed from the first half of the current fiscal year. The following year-on-year comparisons are based on figures for the same period of the previous fiscal year, which have been reclassified into the new segment classification. Media & IP Business The Media & IP Business includes "ABEMA" and "WINTICKET", etc. Building revenue in multiple layers, net sales amounted to ¥112,721 million for the period, a 12.4% year-on-year increase. Operating income amounted to ¥4,729 million, compared to operating loss of ¥284 million for the same period in the prior fiscal year. Internet Advertisement Business The Group's Internet Advertisement Business includes Internet Advertisement Division and AI Division, etc. Maintained high revenue growth rate by acquiring new clients etc, it reported ¥235,356 million in net sales, up 11.1% year on year. Operating income was ¥12,065 million, an 11.6% year-on-year increase. Game Business The Game Business includes Cygames, Inc., Applibot, Inc., Colorful Palette Inc., Sumzap, Inc. and others. Some new games and anniversary events were successful, on the other hand, the hit console game released on February 1, 2024 dragged down the year-on-year performance. Net sales were ¥89,713 million, a 20.1% year-on-year decrease. Operating income was ¥18,707 million, a 13.9% year-on-year decrease. 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 ¥628 million (28.6% year-on-year decrease) and operating loss of ¥749 million, compared to operating loss of ¥960 million for the same period in the prior fiscal year. ‌Overview of Financial Position during the Period (Financial position) Total assets at the end of this consolidated for the first half have increased by ¥3,602 million compared to the end of the previous fiscal year and amounted to ¥520,288 million. It is mainly due to the increase in trade notes and accounts receivable and contract assets with sales increase. Total liabilities have decreased by ¥8,321 million compared to the end of previous fiscal year and amounted to ¥257,859 million. This decrease is mainly due to the decrease in the current portion of convertible bonds. Equity has increased by ¥11,923 million compared to the end of the previous fiscal year and amounted to ¥262,428 million. It is mainly due to increase in retained earnings owing to the recording of Net income attributable to owners of the parent. (Cash flows) As of the end of the consolidated for the first half, cash and cash equivalents decreased by ¥10,734 million from the end of the previous fiscal year to ¥200,400 million. The following is a summary of the major factor affecting the cash flow in the cumulative consolidated for the first half. Cash flow from operating activities Net cash provided by operating activities was ¥23,786 million inflow (¥23,008 million inflow in the same period of the previous fiscal year). The major inflow included net income gains, and the major outflow included income tax payments. Cash flow from investing activities Net cash used in investing activities was ¥9,952 million outflow (¥10,929 million outflow in the same period of the previous fiscal year). Major outflow included purchase of fixed assets. Cash flow from financing activities Net cash provided by financing activities was ¥24,782 million outflow (¥8,429 million outflow in the same period of the previous fiscal year). The major outflow included redemption of convertible bonds. ‌Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information Forecast of FY2025 has not been revised from its original publication on October 30, 2024. ‌Consolidated Interim Financial Statements and Key Notes ‌Consolidated Interim Balance Sheets (Unit: ¥ million) FY2024 (As of September 30, 2024) 1H FY2025 (As of March 31, 2025) Assets Current assets Cash and deposits 210,041 199,171 Trade notes and accounts receivable and contract assets 81,152 91,192 Inventories 11,594 8,159 Sales investment securities 18,206 18,366 Other 38,001 42,228 Allowance for doubtful accounts (363) (360) Total current assets 358,632 358,758 Non-current assets Property and equipment 27,278 31,459 Intangible assets Goodwill 14,778 14,457 Other 34,519 40,452 Total intangible assets 49,297 54,909 Investments and other assets Other 82,120 76,009 Allowance for doubtful accounts (691) (890) Total investments and other assets 81,428 75,118 Total non-current assets 158,005 161,488 Deferred assets 48 42 Total assets 516,686 520,288 Liabilities Current liabilities Trade accounts payable 74,235 83,311 Short-term bank loans 600 2,235 Income tax payable 9,709 10,773 Current portion of convertible bonds 20,016 - Other 63,664 62,027 Total current liabilities 168,226 158,346 Non-current liabilities Convertible bonds 40,439 40,396 Long-term bank loans 45,722 47,406 Provision for long service rewards for employees 3,452 3,611 Asset retirement obligations 2,626 2,629 Other 5,714 5,468 Total non-current liabilities 97,955 99,513 Total liabilities 266,181 257,859 Equity Shareholders' equity Common stock 7,440 7,533 Capital surplus 12,296 12,123 Retained earnings 122,704 130,462 Treasury stock (1) (1) Total shareholders' equity 142,439 150,116 Other comprehensive income Unrealized gain on available-for-sale securities 12,917 12,605 Foreign currency translation adjustments 277 180 Total other comprehensive income 13,194 12,786 Stock acquisition rights 2,644 3,802 Non-controlling interests 92,226 95,723 Total Equity 250,504 262,428 Total liabilities and equity 516,686 520,288 ‌Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive Income Consolidated Interim Statements of Income‌ ‌(Cumulative consolidated for the first half) (Unit: ¥ million) 1H FY2024 (October 1, 2023 - March 31, 2024) 1H FY2025 (October 1, 2024 - March 31, 2025) Net sales 407,444 421,214 Cost of sales 292,626 301,407 Gross profit 114,818 119,807 Selling, general and administrative expenses 88,223 90,637 Operating income 26,595 29,169 Non-operating income Interest income 111 209 Dividends received 149 217 Equity in gains of associated companies - 19 Other 596 334 Total non-operating income 857 781 Non-operating expenses Interest expenses 111 172 Provision for allowance for doubtful accounts - 199 Other 312 399 Total non-operating expenses 424 771 Ordinary income 27,028 29,178 Extraordinary income Gain on sale of non-current assets 15 1,700 Other 286 518 Total extraordinary gain 302 2,219 Extraordinary loss Impairment loss 3,341 1,647 Other 2,118 45 Total extraordinary loss 5,460 1,692 Income before income taxes 21,870 29,705 Income taxes-current 9,879 9,606 Income taxes-deferred (895) 166 Total income tax 8,983 9,772 Net income 12,886 19,933 Net income attributable to non-controlling interests 3,780 4,069 Net income attributable to owners of the parent 9,105 15,863 (Unit: ¥ million) 1H FY2024 (October 1, 2023 - March 31, 2024) 1H FY2025 (October 1, 2024 - March 31, 2025) Net income 12,886 19,933 Other comprehensive income Unrealized gain (loss) on available-for-sale securities 1,543 (150) Foreign currency translation adjustment 81 (106) Share of other comprehensive income (loss) of associates accounted for by the equity method 25 (26) Total other comprehensive income (loss) 1,651 (283) Comprehensive income 14,537 19,650 (Comprehensive income attributable to) Shareholders of the parent 11,009 15,455 Non-controlling interests 3,527 4,194 ‌Consolidated Interim Statements of Comprehensive Income (Cumulative consolidated for the first half)‌ ‌Consolidated Interim Statements of Cash Flows (Unit: ¥ million) 1H FY2024 (October 1, 2023 - March 31, 2024) 1H FY2025 (October 1, 2024 - March 31, 2025) Cash flow from operating activities Income before income taxes 21,870 29,705 Depreciation 5,739 3,829 Impairment loss 3,341 1,647 Gain on sales of non-current assets (15) (1,700) Decrease (Increase) in notes and accounts receivable-trade, and contract assets (12,072) (8,585) Decrease (increase) in investment securities for sale 605 338 Decrease (Increase) in Inventories (1,779) 3,417 Increase (decrease) in accounts payable-trade 1,065 8,777 Decrease (Increase) in prepaid expenses (654) (3,671) Increase (decrease) in accounts payable (9) (4,791) Increase (decrease) in accrued consumption taxes 5,447 (784) Other, net 110 2,752 Sub-total 23,648 30,934 Interest and dividends income received 195 484 Interest expenses paid (111) (172) Income taxes paid (723) (7,460) Net cash provided by (used in) operating activities 23,008 23,786 Cash flow from investing activities Purchase of property, equipment and investment property (1,883) (5,346) Proceeds from sales of property, equipment and investment property 12 7,690 Purchase of intangible assets (6,412) (9,336) Purchase of investment securities (378) (1,701) Other, net (2,267) (1,258) Net cash provided by (used in) investing activities (10,929) (9,952) Cash flow from financing activities Net increase (decrease) in short-term bank loans (2,377) 1,634 Proceeds from long-term bank loans 3,304 3,520 Repayment of long-term bank loans (1,176) (1,750) Cash dividends paid (7,579) (8,090) Payment for redemption of convertible bonds - (20,000) Proceeds from issuance of stock acquisition rights - 1,050 Other, net (602) (1,145) Net cash provided by (used in) financing activities (8,429) (24,782) Effect of exchange rate change on cash and cash equivalents 70 214 Net increase (decrease) in cash and cash equivalents 3,720 (10,734) Cash and cash equivalents at beginning of period 201,780 211,135 Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation 75 - Cash and cash equivalents at the end of period 205,575 200,400 ‌Notes to Consolidated Interim Financial Statements (Notes Regarding Change in Accounting Policies)‌ (Application of Accounting Standard for Current Income Taxes) The Company has applied the "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; hereinafter, "Revised Accounting Standard 2022") and other standards from the beginning of the first half of the current fiscal year. Revisions to categories for recording current income taxes (taxes on other comprehensive income) are subject to the transitional treatment in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment in the proviso of paragraph 65-2 (2) of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022; hereinafter, "Revised Guidance 2022"). There is no impact on the consolidated interim financial statements. In addition, regarding the revision related to the review of the treatment in consolidated financial statements when profits or losses arising from the sale of subsidiary shares, etc. between consolidated companies are deferred for tax purposes, the Revised Guidance 2022 has been applied from the beginning of this interim consolidated accounting period. The change in accounting policy has been applied retrospectively to the previous interim consolidated accounting period and the previous fiscal year. The change in accounting policy has no effect on the consolidated financial statements for the previous interim period or for the previous fiscal year. ‌(Note Regarding in Segment Information) Cumulative First Half of the Fiscal Year Ended September 2024 (October 1, 2023 to March 31, 2024) Sales and Income (Loss) by Reportable Segment (Unit: ¥ million) Reportable Segment Reconsili ations* Consolidated Interim Statements of Income Media & IP Business Internet Advertise ment Business Game Business Investment Development Business Total Net sales 93,486 201,034 112,042 880 407,444 - 407,444 Revenue from contracts with customers** Sales to external customers 93,486 201,034 112,042 880 407,444 - 407,444 Inter-segment sales or transfers 6,779 10,863 171 - 17,813 (17,813) - Total 100,265 211,898 112,213 880 425,258 (17,813) 407,444 Segment income (loss) (284) 10,813 21,714 (960) 31,282 (4,687) 26,595 *Reconciliations of ¥ -4,687 million represent corporate general and administrative expenses not allocable to a reportable segment. **The amount of revenue other than "Revenue from contracts with customers" is insignificant. The Company dose not report it separately from "Revenue from contracts with customers". Matters related to changes in Reportable Segment No applicable items Cumulative First Half of the Fiscal Year Ending September 2025 (October 1, 2024 to March 31, 2025) Sales and Income (Loss) by Reportable Segment (Unit: ¥ million) Reportable Segment Reconcili ations* Consolidated Interim Statements of Income Media & IP Business Internet Advertise ment Business Game Business Investment Development Business Total Net sales 105,427 225,571 89,587 628 421,214 - 421,214 Revenue from contracts with customers** Sales to external customers 105,427 225,571 89,587 628 421,214 - 421,214 Inter-segment sales or transfers 7,293 9,784 125 0 17,204 (17,204) - Total 112,721 235,356 89,713 628 438,419 (17,204) 421,214 Segment income (loss) 4,729 12,065 18,707 (749) 34,752 (5,583) 29,169 *Reconciliations of ¥ -5,583 million represent corporate general and administrative expenses not allocable to a reportable segment. **The amount of revenue other than "Revenue from contracts with customers" is insignificant. The Company dose not report it separately from "Revenue from contracts with customers". Matters related to changes in Reportable Segment (Changes in Reportable Segment) Effective from the first half of the current fiscal year, the Company integrated the "Other Businesses" segment into the "Media Business" segment in accordance with a new structure to strengthen group synergies around "ABEMA", a new TV of the future. Accordingly, "Media Business" has been renamed "Media & IP Business" with the aim of expanding animation and other IP businesses. In addition, the segment information for the first half of the previous fiscal year is disclosed based on the new segment classification. ‌(Notes Regarding Significant Changes in Shareholders' Equity) No applicable items. ‌(Notes Regarding the Going Concern Assumption) No applicable items.

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