Company Reports

CyberAgent's June-quarter revenue rose 9.4% while operating income fell 23.6%, mainly on lower game segment profits. The firm lifted fiscal 2026 (ending September 2026) guidance to revenue of JPY 950 billion and operating income of JPY 77 billion.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

CyberAgent's March-quarter revenue and operating income rose 13% and 39%, driven mainly by strong game growth. Management maintained fiscal 2026 (ending September 2026) guidance for revenue of JPY 880 billion and operating income of JPY 50 billion-JPY 60 billion.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

Shares in Dentsu, Hakuhodo, and LY have fallen 12%, 15%, and 19%, respectively, since September 2025. Advancements in artificial intelligence tools that enable automation in planning, creation, and execution of ads have accelerated investor concerns about AI's impact on ad-related stocks.

CyberAgent's December-quarter revenue and operating income grew 14% and 182%, mainly driven by significant growth in game revenue from new mobile titles in 2025. Media and IP also grew in profitability, with Abema TV achieving breakeven since starting operations in 2016.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

CyberAgent's September-quarter revenue grew 19% year on year, and operating income grew threefold from last year, mainly attributable to multiple mobile game hits in fiscal 2025 (ended September 2025).

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

CyberAgent's June-quarter revenue and operating income grew 11% and 138% from last year, due to two major mobile hits released during the quarter. Fiscal 2025 (ending September 2025) guidance for revenue and operating income increases to JPY 850 billion and JPY 66 billion, respectively.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

Second-quarter revenue and operating income for CyberAgent grew by about 1% from last year. A decline in console game revenue was offset by robust growth in media and internet ad revenue. CyberAgent maintains its full-year revenue and operating income guidance of JPY 820 billion and JPY 42 billion.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

While CyberAgent’s first-quarter fiscal 2025 results largely met our expectations, we trim our revenue forecast for fiscal 2025 (ending September 2025) to JPY 837 billion from JPY 844 billion due to higher uncertainty about this year’s game title lineup. Meanwhile, we broadly maintain our operating income projection of JPY 44 billion due to better-than-expected profitability in the media and intellectual property segment. During the results presentation, CEO Susumu Fujita briefly explained CyberAgent’s medium- to long-term strategy, which focuses on expanding the group’s IP assets by leveraging synergies between the media, game, and ad ecosystems. We believe it is a good time for the company to take a more proactive approach for investment, underpinned by stable profit improvement over the past few quarters. Our medium-term forecasts and fair value estimate of JPY 1,200 remain unchanged. We think the shares are currently fairly valued.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.

CyberAgent reported revenue and operating profit of JPY204 billion and JPY5.9 billion, respectively, in the September quarter, which was broadly in line with our expectations after considering the impact from irregular losses. For the fiscal year ending September 2025, the company guided for a modest 2.1% year-on-year increase in net sales to JPY820 billion, and a 0.4% year-on-year increase in operating profit to JPY42 billion. We toned down our revenue and operating profit forecasts for 2025 to JPY844 billion and JPY44 billion, respectively, from JPY849 billion and JPY48 billion previously, mainly due to a less aggressive mobile game revenue estimate, and a more gradual margin recovery for the internet advertisement business. However, we believe guidance is still conservative compared with our new projections. We are confident that the media and internet advertisement businesses will continue to expand profits, and successful new game releases will help stabilize the game business revenue. Therefore, our long-term outlook for CyberAgent remains intact, and we make no change to our fair value estimate of JPY1,200. We think the stock is slightly undervalued now.

CyberAgent’s June quarter revenue and operating income of JPY 190 billion and JPY 8.6 billion exceeded expectations, mainly driven by the game segment. Based on the solid results, management raised its revenue and operating income guidance for fiscal 2024 (ending September 2024) to JPY 790 billion and JPY 41 billion, respectively, from JPY 750 billion and JPY 30 billion. We believe the new guidance is still conservative and, therefore, raise our forecasts to JPY 799 billion and JPY 44 billion, respectively. Meanwhile, we keep our fair value estimate of JPY 1,200 as we broadly maintain our medium-term forecasts. We think shares are attractive at current levels, as we remain confident in the longevity of CyberAgent’s game titles and think profitability will continue to stabilize.

In Japan, CyberAgent has been a top player in both digital advertising and mobile gaming for many years. It owes its success to its operational knowledge, expertise in digital advertising and game development, and deeply entrenched relationships with suppliers and clients, which we believe will help it stay ahead of competitors for at least the next 10 years.