Welcome!

Agile Computing Authors: Liz McMillan, Elizabeth White, William Schmarzo, Yeshim Deniz, Pat Romanski

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.
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 [email protected].

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



Source: CyberAgent, Inc.

Contact:
CyberAgent 
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
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assis...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.