CyberAgent Inc
TSE:4751
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
802.1
1 121.5
|
| Price Target |
|
We'll email you a reminder when the closing price reaches JPY.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
CyberAgent Inc
You don't have any saved screeners yet
It is time. So we would like to begin CyberAgent's FY 2021 Q1 Results Briefing. This results briefing session is being livestreamed. So with respect to the briefing content today, please refer to the disclaimer included in the presentation material. CEO, Susumu Fujita, will take you through the results.
This is Fujita. We would like to go over the FY 2021 Q1 results. So our fiscal year ends at the end of September. So this quarter covers from October 1 to end of December. Overall, if you look at the results, we have done well. We have had a great start. But if we break that down, the Advertising and Media, as you can see, has done very well. However, Game, temporarily, has not performed as well. Overall sales was a record high.
And this is by quarter. As you can see, the first quarter we recorded -- we reached a record high. And the consolidated OP, as I mentioned before, Games -- the Game business, the profits decreased temporarily, but we were able to offset the decrease with the investment development business and the Ad and Media business did well, so we landed at JPY 7 billion.
In terms of SG&A, the first quarter, Winning Ticket (sic) [ WinTicket ] and Game business, we spent marketing expenses on these 2, Games and WinTicket. However, the expenses were basically flat. So no significant change since the last quarter.
And in terms of the number of employees, this quarter was also flat as well. No major change.
And this is the P&L. So it's quite straightforward.
Balance sheet as well, there's nothing extraordinary worth mentioning.
So the FY 2021 forecast, we just began this fiscal year, but this is the forecast that we have for our business performance. And against this forecast, we're off to a pretty good start. But the second quarter, we should be going back to our normal speed without the investment development business impact.
And now moving on to the individual businesses. First, starting with the Internet Advertising. With this segment, we have performed well. Even a bit COVID, we have reached a record high in the first quarter, and the OP was JPY 5.7 billion.
So KIWAMI Prediction AI, we released the service. So we have KIWAMI Prediction AI, Prediction TD as well we released recently. And so this will -- this is going to be a strength for us in the advertising business. What these does is to measure the effect of forecasting and we can change the creative in real time to optimize its effectiveness, and COVID-19 proved to be a tailwind for this business as well. There are various elements, but we have excelled in operations and technologies which are proving to be great weapons for maximizing advertising effectiveness. So we hope to continue to expand our market share in this area.
Moving on to the Game business. As I mentioned before, we are temporarily facing hardships, mainly because in the first quarter there are some seasonal factors. So if you look at our track record, you can see that it tends to be lower -- our performance tends to be lower in the first quarter. And we actually are facing challenges in operations, and also the titles that we had expectations in, we didn't see the results that we had hoped for. But in January, we've seen all of this go back to normal. We're recovering. So also, in addition, in February, we are going to be releasing a huge title for us. So we believe that this trend is temporary.
This is the OP. So it has come down significantly.
The big title that we will be releasing, we have invested quite a significant amount over the couple -- last couple of years, and we will be releasing a new game on February 18, NieR Re[in]carnation. And also February 24, the long-awaited UMA MUSUME will also be released as well. So we have 2 major titles being released next month. So based on -- depending on how well these launch and trend, our Game business performance would change significantly.
And in terms of other upcoming titles, we have this kind of lineup at the moment. So IDOLY PRIDE, we released the animation the other day, and we've seen a great start, is off to a good start. So we are going to be also releasing a game with the same content.
Moving on to the Media Business. It has grown significantly. Abema-related businesses performed well. So that's the key contribution to this business. And pay-per-view of WinTicket, which is a bicycle racing, automobile auto racing, they both performed well. So they've contributed to the Media business. In terms of the operating loss, we have significantly reduced this as well.
And we spent 4 years and 9 months since we launched Abema, but we've seen a shift in downloads. We're doing well in terms of downloads, and the weekly active users is also increasing as well. The WAU right now is around 12 million. So it has remained around that level. So it's going steady.
And in terms of the premium subscribers, we were trying to do 1 million -- trying to reach 1 million, but it's slightly below this number -- this target. But I will explain later how we will -- how we have changed the organization to enable us to do better. But in any case, we're growing well.
Underdog is movie that we -- is our very first movie, and we won 4 awards, and also the hit content, You Can't Fool Me, Mr. Wolf. But we have premium member only special content as well. So we were able to introduce many content exclusive to premium membership, but we will continue to -- we would like to continue to do so to increase our -- reinforce our efforts. And we also had many live concerts in December. LDH, Exile and also Album Akira of Masaharu Fukuyama, Porno Graffitti, Southern All Stars. These are all very famous artists in Japan. But we had great live concerts on our platform, and it was within the year. And even after January, the artists and their management companies did not know how -- what they would like to do 2021 onwards, but they decided to continue to offer concerts online because of the emergency -- state of emergency that has now been issued again. So we believe that the online live concerts should continue for some time.
WinTicket has done very well in the recent months. And we've already -- we're already in the block. We're already making profit. But in the first quarter, we had lots of TV commercials and done a lot of promotions. So it's a little bit lower. But over the fiscal year, we believe that we launched it from scratch, but, I think, we believe that this will continue to contribute to our performance overall. And I mentioned about the organizational change because the premium membership we weren't able to hit the target by the end of December. So Abema used to do TV and video, and it's free and also paid service as well. So we have both free users and premium users.
So it's hard -- it was hard to categorize us, were we TV or were we pay-per-view. So we decided to split the organization into 2. So the free business unit will focus on TV businesses and premium business unit will focus on the business model, such as Netflix and Amazon Prime. So we divided our organization into 2. And the free business unit will continue to track WAU and to increase WAU and monetize ads; and premium business unit will focus on increasing premium users with exclusive content. So we have begun to run Abema with these 2 different business units.
So I say this every time, but Abema, we started as a free service and we wanted to monetize after we hit 10 million WAU. Now we're at 12 million. So we have advertising, subscription and other services such as WinTicket. So these are related businesses that we want to continue to add and grow. So it's going to take some time, but we hope to continue to grow this into a key business pillar over the mid- to long term.
So for FY 2021, we want to grow a large Media business while Media and Ad businesses do well. So this -- we will continue along this path, and that is it for myself.
Thank you very much for joining us today.
So this concludes our FY 2021 first quarter results briefing. If you should have any questions, please contact the IR representative. Thank you for watching today.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]