Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

News Feed Item

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.

(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)
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
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 [email protected].

Follow us! https://twitter.com/#!/CyberAgentInc

Source: CyberAgent, Inc.

PR/IR Division
Akiko Kashiwa
Tel: +81-3-5459-0227
E-mail: [email protected]

Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net

More Stories By JCN Newswire

Copyright 2008 JCN Newswire. All rights reserved. Republication or redistribution of JCN Newswire content is expressly prohibited without the prior written consent of JCN Newswire. JCN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...