English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
FY2020 First Quarter Consolidated Financial Results [Japanese GAAP]
January 29, 2020 | |||
Listed company name: CyberAgent, Inc. | Listed stock exchange: TSE 1st section | ||
Code No.: | 4751 | URL https://www.cyberagent.co.jp/en/ | |
Representative: | President | Susumu Fujita | |
Inquiries: | Managing Director | Go Nakayama | Tel +81-3-5459-0202 |
Quarterly report submission date: January 30, 2020 | Dividend payment start date | - | |
Preparation of Supplementary Materials for Quarterly Financial Results: Yes |
Presentation of Quarterly Financial Results: Yes (live stream only)
(Amounts less than ¥1 million rounded down)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending September 2020
(1) Consolidated results of operations (cumulative) | (% = Year-on-Year Change.) | |||||||||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||||||||||||||||||
shareholders of parent | ||||||||||||||||||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | |||||||||||||||||||
1Q FY2020 | 115,681 | 4.4 | 7,733 | 44.6 | 7,724 | 49.5 | 1,456 | 58.9 | ||||||||||||||||||
1Q FY2019 | 110,855 | 13.2 | 5,346 | (35.2) | 5,165 | (33.7) | 916 | (61.2) | ||||||||||||||||||
(Note) Comprehensive income 1Q FY2020¥4,209 million(-%) | 1Q FY2019 ¥-725 million (-%) | |||||||||||||||||||||||||
Basic earnings | Diluted earnings | |||||||||||||||||||||||||
per share | per share | |||||||||||||||||||||||||
¥ | ¥ | |||||||||||||||||||||||||
1Q FY2020 | 11.55 | 10.82 | ||||||||||||||||||||||||
1Q FY2019 | 7.28 | 6.76 | ||||||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||||||
Total assets | Net assets | Shareholders' | ||||||||||||||||||||||||
equity ratio | ||||||||||||||||||||||||||
¥ million | ¥ million | % | ||||||||||||||||||||||||
As of 1Q FY2020 | 226,195 | 111,489 | 35.0 | |||||||||||||||||||||||
As of FY2019 | 224,876 | 110,352 | 35.2 | |||||||||||||||||||||||
(Reference) Equity capital: As of 1Q FY2020 | ¥79,212 million | As of FY2019 | ¥79,169 million | |||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||||
Annual dividends | ||||||||||||||||||||||||||
1Q | 2Q | 3Q | Year end | Total | ||||||||||||||||||||||
¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||||||
FY2019 | - | 0.00 | - | 33.00 | 33.00 | |||||||||||||||||||||
FY2020 | - | |||||||||||||||||||||||||
FY2020 (Forecast) | 0.00 | - | 33.00 | 33.00 | ||||||||||||||||||||||
(Note) Revisions to most recent dividend forecast: None | ||||||||||||||||||||||||||
3. Forecast of the Consolidated Results for the Fiscal Year Ending September 2020 | ||||||||||||||||||||||||||
(October 1, 2019 - September 30, 2020) | ||||||||||||||||||||||||||
(% = Year-on-Year Change.) | ||||||||||||||||||||||||||
Profit attributable to | Basic | |||||||||||||||||||||||||
Net sales | Operating income | Ordinary income | shareholders of | earnings per | ||||||||||||||||||||||
parent | share | |||||||||||||||||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ||||||||||||||||||
Full year | 465,000 | 2.5 | 28,000 | (9.2) | 28,000 | (8.2) | 8,000 | 372.1 | 63.48 | |||||||||||||||||
~32,000 | ~3.8 | ~32,000 | ~4.9 | ~10,000 | ~490.1 | ~79.35 | ||||||||||||||||||||
(Note) Revisions to most recent consolidated earnings forecast: None
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
*Notes
(1) Changes in Significant Subsidiaries during the Period: None
(Changes in specified subsidiaries due to changes in the scope of consolidation)
New : -(Company name: | -) |
Excluded : -(Company name: | -) |
- Application of simplified accounting methods and/or special accounting methods: None
- Changes in accounting policies, changes in accounting estimates, restatements
- Changes associated with revisions of accounting standards: None
- Changes other than those included in i) : None
- Changes in accounting estimates: None
- Restatements: None
- Number of shares issued
(1) | Number of shares issued and outstanding at end of period (including treasury stock) | ||
1Q | FY2020: 126,426,600 shares | FY2019: 126,426,600 shares | |
(2) | Number of shares of treasury stock issued and outstanding at end of period | ||
1Q | FY2020: 402,742 shares | FY2019: 434,142 shares | |
(3) Average number of shares during the period (cumulative quarterly period) | |||
1Q | FY2020: 126,008,582 shares | 1Q FY2019: 125,904,736 shares | |
*The Consolidated Financial Results 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.Qualitative Information on the Quarterly Financial Summary (3) Forecast" on page 2.
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
Table of Contents | ||
1. Qualitative Information on the Quarterly Financial Summary.................................................................................. | 2 | |
(1) | Overview of Consolidated Financial Results..................................................................................................... | 2 |
(2) | Overview of Consolidated Financial Position.................................................................................................... | 3 |
(3) | Forecast............................................................................................................................................................. | 3 |
2. Quarterly Consolidated Financial Statements and Key Notes........................................................................... .... | 4 | |
(1) | Quarterly Consolidated Balance Sheets........................................................................................................... | 4 |
(2) | Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of | |
Comprehensive Income..................................................................................................................................... | 5 | |
(3) | Notes to Quarterly Consolidated Financial Statements.................................................................................... | 7 |
(Notes Regarding the Going Concern Assumption) ........................................................................................... | 7 | |
(Notes Regarding Significant Changes in Shareholders' Equity) ...................................................................... | 7 | |
(Segment Information) ....................................................................................................................................... | 7 |
1
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
1. Qualitative Information on the Quarterly Financial Summary
(1) Overview of Consolidated Financial Results
The scale of the video ad market focusing on smartphones is estimated to increase steadily by 26.9% to 328.9 billion yen in 2020, and will reach 506.5 billion yen by 2023 (Note).
Seizing on this trend, the CyberAgent Group has taken advantage of the growth of the smartphone market. At the same time, the group has been investing in "AbemaTV", to grow it in the medium to long-term mainstay.
As a result, during the cumulative consolidated first quarter, net sales grew 4.4% year on year to ¥115,681 million, and operating income amounted to ¥7,733 million (44.6% increase). Ordinary income amounted to ¥7,724 million (49.5% increase), and profit attributable to shareholders of parent came in at ¥1,456 million (58.9% increase).
(Note) Source: CyberAgent/ Digital Infact, The Survey on Japanese video advertising market trends Earnings by business segments are discussed below.
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) Media Business
The Media Business includes "AbemaTV", "Ameba" and "tapple", etc. While investing in "Abema TV", net sales grew and amounted to ¥12,229 million for the period, a 6.9% year-on-year increase. Operating loss amounted to ¥5,050 million, compared to operating loss of ¥4,683 million for the same period in the prior fiscal year.
(b) Game Business
The Game Business includes Cygames, Inc., Craft Egg, Inc., Sumzap, Inc., etc.
Major existing titles remain strong and driven by new hit titles, it reported net sales amounting to ¥35,251 million,
a 3.1% year-on-year decrease. Operating income was ¥5,118 million, a 60.3% year-on-year increase.
- Internet Advertisement Business
The Group's Internet Advertisement Business includes Internet Advertisement Division, CyberZ, Inc., etc. Focusing on increasing advertising billings for newly developed advertisers, this segment recorded ¥67,322
million in net sales, up 8.1% year on year. Operating income gained 33.7%, reaching ¥5,662 million.
(d) 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 ¥2,953 million (24.2% year-on-year decrease) and operating income of ¥2,665 million (a year-on-year decrease of 21.5%).
(e) Other Businesses
The Other Businesses segment includes CAM Inc., Makuake, Inc., Zelvia Co., Ltd. and others.
This segment reported net sales of ¥4,643 million, a 1.3% year-on-year increase. Operating income amounted to ¥288 million (a year-on-year increase of 932.1%).
2
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
(2) Overview of Consolidated Financial Position
Total assets at the end of this consolidated first quarter have increased by ¥1,318 million compared to the end of the previous fiscal year and amounted to ¥226,195 million. It is mainly due to the increase in Software.
Total liabilities have increased by ¥182 million compared to the end of previous fiscal year and amounted to ¥114,705 million. This increase is mainly due to an increase in Accounts paylable-trade to sales and business scale increase.
Total net assets have increased by ¥1,136 million compared to the end of the previous fiscal year and amounted to ¥111,489 million. It is mainly due to increase in valuation difference on available-for-sale securities and non- controlling interests.
(3) Forecast
Forecast of FY2020 has not been revised from its original publication on October 30, 2019.
3
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
2. Quarterly Consolidated Financial Statements and Key Notes
(1) Quarterly Consolidated Balance Sheets
(Unit: ¥ million) | ||||
FY2019 | 1Q FY2020 | |||
(As of September 30, 2019) | (As of December 31, 2019) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 84,565 | 82,508 | ||
Accounts and notes receivable-trade | 54,917 | 55,470 | ||
Inventories | 924 | 1,164 | ||
Sales investment securities | 14,239 | 15,134 | ||
Other | 14,093 | 13,946 | ||
Allowance for doubtful accounts | (77) | (74) | ||
Total current assets | 168,662 | 168,150 | ||
Non-current assets | ||||
Property, plant and equipment | 12,998 | 13,164 | ||
Intangible assets | ||||
Goodwill | 1,196 | 1,151 | ||
Other | 23,192 | 24,055 | ||
Total intangible assets | 24,388 | 25,206 | ||
Investments and other assets | ||||
Other | 18,806 | 19,638 | ||
Allowance for doubtful accounts | (20) | (16) | ||
Total investments and other assets | 18,785 | 19,622 | ||
Total non-current assets | 56,172 | 57,993 | ||
Deferred assets | 41 | 51 | ||
Total assets | 224,876 | 226,195 | ||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable-trade | 38,151 | 39,712 | ||
Short-term loans payable | 940 | 930 | ||
Income tax payable | 7,014 | 2,555 | ||
Other | 24,643 | 27,393 | ||
Total current liabilities | 70,749 | 70,591 | ||
Non-current liabilities | ||||
Convertible bonds | 40,434 | 40,408 | ||
Long-term loans payable | 83 | 77 | ||
Accrued long service rewards for | 1,409 | 1,450 | ||
employees | ||||
Asset retirement obligations | 1,795 | 1,796 | ||
Other | 50 | 380 | ||
Total non-current liabilities | 43,774 | 44,113 | ||
Total liabilities | 114,523 | 114,705 | ||
Net assets | ||||
Shareholders' equity | ||||
Capital stock | 7,203 | 7,203 | ||
Capital surplus | 6,181 | 7,791 | ||
Retained earnings | 61,090 | 58,389 | ||
Treasury stock | (459) | (426) | ||
Total shareholders' equity | 74,015 | 72,958 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale | 5,000 | 6,073 | ||
securities | ||||
Foreign currency translation adjustments | 152 | 181 | ||
Total other comprehensive income | 5,153 | 6,254 | ||
Subscription rights to shares | 925 | 943 | ||
Non-controlling interests | 30,258 | 31,334 | ||
Total net assets | 110,352 | 111,489 | ||
Total liabilities and net assets | 224,876 | 226,195 |
4
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
-
Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income (Cumulative consolidated first quarter)
(Unit: ¥ million) | |||
1Q FY2019 | 1Q FY2020 | ||
(October 1, 2018 - | (October 1, 2019 - | ||
December 31, 2018) | December 31, 2019) | ||
Net sales | 110,855 | 115,681 | |
Cost of sales | 76,572 | 81,616 | |
Gross profit | 34,283 | 34,064 | |
Selling, general and administrative expenses | 28,936 | 26,331 | |
Operating income | 5,346 | 7,733 | |
Non-operating income | |||
Interest income | 30 | 36 | |
Dividends received | 52 | 58 | |
Other | 20 | 29 | |
Total non-operating income | 103 | 123 | |
Non-operating expenses | |||
Interest expenses | 2 | 4 | |
Equity in losses of affiliates | 219 | 113 | |
Other | 63 | 15 | |
Total non-operating expenses | 284 | 133 | |
Ordinary income | 5,165 | 7,724 | |
Extraordinary income | |||
Gain on sales of property | 135 | 1 | |
Other | 780 | 0 | |
Total extraordinary gain | 916 | 1 | |
Extraordinary loss | |||
Impairment loss | 193 | 640 | |
Loss on withdrawal from business | - | 225 | |
Other | 467 | 85 | |
Total extraordinary loss | 661 | 951 | |
Income before income taxes and non-controlling | 5,420 | 6,774 | |
interests | |||
Income taxes-current | 3,457 | 3,075 | |
Income taxes-deferred | 424 | 599 | |
Total income tax | 3,881 | 3,675 | |
Net income | 1,538 | 3,099 | |
Profit attributable to non-controlling interests | 622 | 1,643 | |
Profit attributable to shareholders of parent | 916 | 1,456 | |
5
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
Quarterly Consolidated Statements of Comprehensive Income
(Cumulative consolidated first quarter)
(Unit: ¥ million) | |||
1Q FY2019 | 1Q FY2020 | ||
(October 1, 2018 - | (October 1, 2019 - | ||
December 31, 2018) | December 31, 2019) | ||
Net income | 1,538 | 3,099 | |
Other comprehensive income | |||
Valuation difference on available-for-sale | (2,193) | 729 | |
securities | |||
Foreign currency translation adjustment | (65) | 44 | |
Share of other comprehensive income of | |||
associates accounted for using equity | (4) | 337 | |
method | |||
Total other comprehensive income | (2,263) | 1,110 | |
Comprehensive income | (725) | 4,209 | |
(Comprehensive income attributable to) | |||
Shareholders of the parent | (1,204) | 2,557 | |
Non-controlling interests | 479 | 1,652 |
6
English Translation
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.
-
Notes to Quarterly Consolidated Financial Statements (Notes Regarding the Going Concern Assumption)
No applicable items.
(Notes Regarding Significant Changes in Shareholders' Equity)
No applicable items.
(Segment Information)
I. Cumulative First Quarter of the Fiscal Year Ended September 2019 (October 1, 2018 to December 31, 2018)
1. Sales and Income (Loss) by Reportable Segment
(Unit: ¥ million) | ||||||||
Reportable Segment | Quarterly | |||||||
Adjustments | Consolidated | |||||||
Internet | Investment | * | Statements | |||||
Media | Game | Advertisem | Developme | Other | Total | of Income | ||
ent | nt | |||||||
Net sales | ||||||||
Sales to external | 8,711 | 36,246 | 57,792 | 3,895 | 4,208 | 110,855 | - | 110,855 |
customers | ||||||||
Inter-segment sales | 2,728 | 116 | 4,467 | - | 374 | 7,686 | (7,686) | - |
or transfers | ||||||||
Total | 11,439 | 36,363 | 62,259 | 3,895 | 4,583 | 118,541 | (7,686) | 110,855 |
Segment income | (4,683) | 3,193 | 4,236 | 3,396 | 27 | 6,170 | (823) | 5,346 |
(loss) | ||||||||
*Adjustment of ¥ -823 million represents corporate general and administrative expenses not allocable to a reportable segment.
- Cumulative First Quarter of the Fiscal Year Ending September 2020 (October 1, 2019 to December 31, 2019)
1. Sales and Income (Loss) by Reportable Segment
(Unit: ¥ million) | ||||||||
Reportable Segment | Quarterly | |||||||
Adjustment | Consolidated | |||||||
Internet | Investment | s* | Statements | |||||
Media | Game | Advertisem | Developme | Other | Total | of Income | ||
ent | nt | |||||||
Net sales | ||||||||
Sales to external | 10,200 | 35,179 | 63,067 | 2,953 | 4,280 | 115,681 | - | 115,681 |
customers | ||||||||
Inter-segment sales | 2,028 | 72 | 4,255 | - | 362 | 6,719 | (6,719) | - |
or transfers | ||||||||
Total | 12,229 | 35,251 | 67,322 | 2,953 | 4,643 | 122,400 | (6,719) | 115,681 |
Segment income | (5,050) | 5,118 | 5,662 | 2,665 | 288 | 8,684 | (951) | 7,733 |
(loss) | ||||||||
*Adjustment of ¥ -951 million represents corporate general and administrative expenses not allocable to a reportable segment.
2. Matters Concerning Changes of Reporting Segment (Change of segment category)
From the first quarter of this consolidated fiscal year, we transferred a part of the businesses from "Internet Advertisement business" to "Media business" to describe the actual management approach and business conditions of the Group.
As for the segment information for the first quarter of the previous consolidated fiscal year, the figures are calculated based on the new segment category.
7
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CyberAgent Inc. published this content on 29 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2020 06:24:06 UTC