CyberAgent Reports Full Year Results; Revenue Up 18%, Operating Income Up 21.3%
October 25, 2014     Japanese 
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CyberAgent Reports Full Year Results; Revenue Up 18%, Operating Income Up 21.3% - JCN Newswire
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CyberAgent Reports Full Year Results; Revenue Up 18%, Operating Income Up 21.3%

Tokyo, Oct 25, 2012 - (JCN Newswire) - CyberAgent, Inc. (TSE: 4751), a Tokyo-based leader in Internet media markets, has announced results for the year ended September 30, 2012. Net sales reached 141,111 million yen (up 18.0% from the same period of the previous year); operating income reached 17,410 million yen (up 21.3%); ordinary income reached 17,146 million yen (up 21.5%); and net income reached 8,522 million yen (up 16.4%).

During the year, shipment volume of smartphones was 24.17 million, 2.8 times larger than the shipment volume for the previous year, and was 56.8% of the total shipment, exceeding 50 percent for the first time. The shift to smartphones should continue to accelerate, with expectations that fiscal 2012 will have shipments of 27.9 million units (68.7% of total shipment) and fiscal 2013 will have shipments of 30.8 million units (75.1% of total shipment)(1).

The domestic internet business market expanded to JPY 14 trillion in fiscal 2011, and is predicted to increase to approximately JPY 15 trillion in fiscal 2012 and JPY 22 trillion in fiscal 2016(2). In particular, the social games market has rapidly expanded to JPY 257 billion in 2011, 1.8 times compared to the previous year, and is expected to expand to JPY 342.9 billion in 2012(3).

Thus, the Group worked on improving service and expanding the social game line-up for smartphone media, in particular Ameba, and simultaneously worked on reforming comprehensive Internet business (former Internet advertising agency business).
Consolidated Financial Results for the Full year Ended September 30, 2012

A. Business Results (millions of yen)
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Full year ended Sept 30, 2012 % 2011 %
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Net Sales 141,111 18.0 119,578 23.7
Operating Income 17,410 21.3 14,349 53.7
Ordinary Income 17,146 21.5 14,114 53.0
Net Income 8,522 16.4 7,323 33.3
Net Income/Share(y) 13,162.55 11,281.91
Fully Diluted
Net Income/Share(y) 13,154.54 11,264.79
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Return on Equity (ROE) 21.7 21.9
Return on Assets (ROA) 13.8 14.4
Ordinary Income to
Operating Revenue Ratio 12.3 12.0
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B. Financial Position
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As of Sept 30, 2012 Sept 30, 2011
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Total Assets 136,366 111,689
Shareholders' Equity 43,594 38,677
Shlders' Eqty Ratio(%) 30.6 33.0
Shlders' Eqty/share(y) 64,518.29 56,499.21
Equity Capital 41,767 36,851
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C. Consolidated Cash Flows
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CF from Operating Activities 13,627 8,268
CF from Investing Activities (10,913) (8,564)
CF from Financing Activities (1,548) (1,665)
Cash and Cash Equiv./Period End 19,248 18,108
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D. Dividends (yen)
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Year ended 2013 (Forecast) 2012 2011
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3,500 3,500 3,500
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Performance by Business Segment

(a) Ameba business
The Ameba business includes Ameba, Ameba Pigg, and AMoAd, etc.

Ameba's PV number for September 2012 was 33.16 billion PV (up 4.16 billion PV from 29 billion PV in the same month of the previous year), and subscribers totaled 25.28 million (up 7.05 million from 18.23 million in the same month of the previous year).

In this business, despite the transition from feature phones to smartphones, net sales totaled JPY 25,015 million (up 43.3% from JPY 17,450 million in the same period of the previous year), and we recorded an operating income of JPY 5,586 million (up 3.3% from an operating income of JPY 5,405 million in the same period of the previous year).

(b) Media business
The media business includes social game businesses in our Group companies such as Cygames Inc., Applibot, Inc., and Grenge, Inc., and CA Mobile, LTD.

In this business, due to factors such as steady expansion of our social games business, net sales totaled JPY 48,040 million (up 40.1% from JPY 34,288 million in the same period of the previous year), and we recorded an operating income of JPY 5,009 million (up 132.8% from an operating income of JPY 2,151 million in the same period of the previous year).

(c) Comprehensive Internet business
From the current business year, reforms were made to change from Internet advertising agency business to comprehensive Internet business.

In this business, while focusing on starting the smartphone media business, net sales totaled JPY 69,759 million (up 2.9% from JPY 67,762 million in the same period of the previous year), and we recorded an operating income of JPY 3,385 million (down 11.6% from JPY 3,830 million in the same period of the previous year).

(d) FX business
The FX business includes foreign exchange margin trading in CyberAgent FX, Inc.

In the current business year, the number of account openings and deposit accounts increased steadily. As a result, net sales totaled JPY 7,480 million (down 3.5% from JPY 7,751 million in the same period of the previous year), and we recorded an operating income of JPY 3,647 million (up 14.0% from an operating income of JPY 3,200 million in the same period of the previous year).

(e) 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 this business, due mainly to sales of shares, net sales totaled JPY 352 million (up 50.2% from JPY 234 million in the same period of the previous year), and we recorded an operating loss of JPY 219 million (an operating loss of JPY 239 million for the same period of the previous year).

Earnings Estimates for the Next Period (October 1, 2012 to September 30, 2013)

In this period (FY2012), in order to take advantage of the rapid adoption of smartphones, management resources were focused on smartphone related businesses, with the creation of an open Ameba platform on smartphones, development and operations of a large number of community services and social games and sales of advertising.

In the next period (FY2013), while continuing to focus on succeeding with the smartphone Ameba, large scale promotional campaigns including television commercials and advertising on public transportation will be carried out, with management resources being more focused on smartphone businesses than before. At the same time, some businesses will be considered for restructuring.

The impact of the large scale promotional campaign on Ameba for smartphones and the decisions made on restructuring businesses have a high chance of causing fluctuations in business results, so earnings estimates will not be indicated at this time due to the inability to make a reasonable estimate at this time. Results will be tracked during the period and an estimate will be announced as soon as feasible.

(2) Qualitative Information on Consolidated Financial Position

(a) Assets, Liabilities and Net Assets
At the end of this consolidated fiscal year, total assets stood at JPY 136,366 million (up JPY 24,676 million from the end of the previous fiscal year). This was mainly due to the fact that foreign exchange dealings cash segregated as deposits for customers increased, as a result of the balance on deposit assets in our FX business steadily increasing, and cash and deposits, and accounts and notes receivable-trade increased as a result of healthy sales activities.

Liabilities totaled JPY 92,771 million (up JPY 19,760 million from the end of the previous fiscal year). This was mainly due to an increase in foreign exchange dealings deposits from customers in our FX business.

Net assets totaled JPY 43,594 million (up JPY 4,916 million from the end of the previous fiscal year). This was mainly due to the fact that retained earnings increased, as a result of our solid operating activities.

(b) Status of cash flow
Cash and cash equivalents (hereafter 'funds') at the end of this consolidated fiscal year increased by JPY 1,139 million from the end of the previous consolidated fiscal year, and totaled JPY 19,248 million.

Cash flow situations and major causal factors for this consolidated fiscal year are as follows.

(Net cash provided by operating activities)
Net cash provided by operating activities totaled JPY 13,627 million (net cash provided by the same period of the previous year totaled JPY 8,268 million). This was mainly due to the fact that we recorded a profit.

(Net cash used in investing activities)
Net cash used in investing activities totaled JPY 10,913 million (net cash used in the same period of the previous year totaled JPY 8,564 million). This was mainly due to purchase of non-current assets.

(Net cash used in financing activities)
Net cash used in financing activities totaled JPY 1,548 million (net cash used in the same period of the previous year totaled JPY 1,665 million). This was mainly due to cash dividends paid and purchase of treasury stock.

(3) Fundamental Policy on Distribution of Profits and Dividends for This Period and Next Period

The Company considers returning profits to our shareholders an important issue for management, and plans to continue to provide dividends while working on increasing share value over the mid-term with business growth and improved capital efficiency. Decisions on retained earnings for the sake of future business expansion and fiscal soundness considering consolidated results and individual cash management will be made after comprehensive consideration.

Based on this policy, dividends for this period (FY2012) will be JPY 3,500, with dividends for the next period (FY2013) also planned to be the same as this period at JPY 3,500.

(1) MM Research Institute, Ltd.
(2) Nomura Research Institute, Ltd.
(3) Yano Research Institute Ltd.
Segment Information

Oct 1, 2011 to Sept 30, 2012
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A B C D E F G H
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Sales
- Sales to external customers
19,390 47,059 66,841 7,480 338 141,111 - 141,111
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- Inter-segment sales
5,624 980 2,917 - 13 9,536 (9,536) -
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Total
25,015 48,040 69,759 7,480 352 150,648 (9,536) 141,111
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Segment Income (Loss)
5,586 5,009 3,385 3,647 (219) 17,410 - 17,410
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Segment Assets
8,042 29,290 15,154 74,245 4,607 131,340 5,025 136,366
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Other Items
- Depreciation
1,031 1,187 736 369 9 3,334 - 3,334
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- Increase/Decrease in Current/Non-current Assets
3,283 3,424 2,777 423 71 9,980 - 9,980
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A. Ameba business
B. Media business
C. Comprehensive Internet business
D. FX
E. Investment development business
F. Subtotal
G. Adjustment Amount
H. Consolidated balance sheet amount

Notes: Main products of each business segment
(1) Ameba business: Ameba, Ameba Pigg, AmoAd, etc.
(2) Media business: Social game business, operation of PC and mobile media, etc.
(3) Comprehensive Internet business: Advertising agency business, smartphone media business, etc.
(4) FX business: Foreign exchange margin trading
(5) Investment development business: Investment through corporate venture capital, fund operation, etc.

About CyberAgent, Inc.

Founded in 1998, CyberAgent, Inc. is a leading Internet company focused on its smartphone social community and game 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

 


Oct 25, 2012
Source: CyberAgent, Inc.

CyberAgent, Inc. (TSE: 4751)

From the Japan Corporate News Network
http://www.japancorp.net
Topic: Earnings
View more news from these Sectors: Games & Entertainment, Financial General


 
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