CyberAgent, Inc.

We would like to begin Cyber Agents FY 2024 ending September first quarter earnings briefing. This briefing session is being streamed. Please refer to the disclaimer you can find within the briefings document with regards to the content we will be sharing today. President Fujita will be taking us through the earnings. Thank you. So I will take you through the FY24 Q1 financial summary. So this fiscal year will end in September. So this is the first quarter. financial announcement. So the first quarter, we have, we're off to a good start, more so than we had expected. Umamusumen became a good fit, a good, great hit two years ago, and usually our business, the first quarter tends to be weaker than the rest. Having said that, we have marked a good start this fiscal year. And right now, the entire company is focusing on increasing sales and profits. And media business, first of all, we have increased both sales and operating profit. And with respect to the advertising business, we have been growing strongly as well, increasing both sales and operating profit. With respect to games, Top line has increased, however. This is due to Jesus Christ's Phantom Parade. It became a big hit, but Uma Musume was our own IP, so it had higher margins. And in comparison to that, the overall OP has decreased. This is the sales. Quarterly sales, and as I mentioned before, first quarter tends to be weaker, but as you can see, we have increased our sales for this quarter. We're off to a good start, and this is the operating profit for this quarter. Over the last two, two and a half years, Umamus may have had a significant impact, but if you look at our organic growth, Compared to our organic growth, doing 6.2 billion yen in the first quarter is a good sign. We have performed well. And this is the SG&A is trending stably. And in terms of the number of employees, this has also progressed stably. This is the PL. See, the final income or up profit has become negative, but this is due to real gate. Actually, we have temporary losses for that, devaluation losses, so real gate. It is a very serious and good company. So I don't, even though we have incurred a valuation loss, we don't foresee that as a huge issue. This is a base balance sheet, as you can see. Next, we would like to go through the FY20-24 forecast. So from two quarters ago, we have committed to increasing sales and profits. And this is... Since then, as you can see, we have progressed. We have had a strong start for this fiscal year. The first quarter I mentioned usually tends to be weak, and this is because the advertising business... So this includes the second quarter, which includes March, which is the end of the fiscal year for many companies. And that's a very important quarter. And so second quarter also tends to be strong as well because it does have a lot of games anniversaries as well. But taking that into account, we have started... at a good pace for the first quarter. Next, moving on to the individual businesses, first starting with internet app business. As I mentioned before, the financial year closes in March, usually for many clients. So second quarter tends to be the strongest quarter every year, but we have performed well for this quarter despite that. And the operating profit as well, we have committed to recovering the OP from two quarters ago. And as you can see, we are improving, enhancing our operating profit. With respect to the internet ad business, we offer a DX business. And last week, we announced our partnership with Mizho Bank. And the DX business that we have with ANA, Miso Bank, as well as other large enterprises, we are increasing more partnerships. So we will partner in terms of the advertising business, and we want to actually establish new businesses with these partners. Moving on to the game business. As you can see, the top line has steadily increased. Jesus Christ and Final Fantasy, which are new titles, and these became a hit. So this has contributed to strong sales. However, OP came down by 32.9% year on year. One year ago, Uma Musume contributed significantly to the OP. And this was our own IP, so most of it was growth profits. So we're seeing impact from that. And Jesus Kaizen that we released in November is off to a very good start. It's been three months already, but it's a smash hit. It continues to be a popular game. In terms of our future plans, February 1st, tomorrow, Granblue Fantasy Relink will go on sale. And this, we put a lot of effort into this game, and we will start selling to global markets, all markets around the world. So I have high expectations for this title, which will be released tomorrow. Moving on to the media business. Media business, too, has seen an increase in sales in OP as well. OP, we've made upfront investments, so we've seen large losses. However, we have started to clean up. And ABEMA-related businesses have continued to grow as well. Especially after the World Cup broadcast, we have continued to maintain a strong trend and monetization is going well. Regarding the weekly active user, so in December two years ago, World Cup had a significant impact. And ABEMA's recognition and also the usage as well as the desire to be on our platform, the workup had positive impacts on those aspects as well. So it has improved the overall numbers and the investments have borne fruit. Lastly, this is the mid-to-long-term strategy, as I share at the earnings briefing each quarter. But we have started to take an important step towards increasing sales and profits, and we will make sure that we remain committed and achieve this goal to make sure that we continue to be a good company with high share prices. That's it for myself. Thank you very much. This concludes CyberAgent's FY2024 ending in September first quarter earnings briefing. Should you have any questions, please reach out to your IR contact. Thank you for watching today.