CyberAgent,Inc. (4751) Q2 2026 Earnings Call Transcript

We would like to begin Cyber Agents FY2026 second quarter earnings briefing. This session is being video streamed. With respect to the content we will be sharing with you today, please refer to the disclaimer included in the presentation material. Our President Yamauchi will take us through the results.

This is President Iyamuchi. I would like to take you through the FI 2026 second quarter results. Overall, we had a very good quarter. We saw record high sales. And as the second quarter, we saw record high second quarter OP as well. With respect for the media and IP business, it is doing well with ABIMA starting to contribute to profits. with respect to the ad business a large client has left but we managed to fill the gap ahead of schedule and we have seen sales and profits increase one again record highs we saw record high sales and doubled we saw also saw double digit growth y-on-y with respect to the game business we did very we did well with anniversary events and global expansion we also saw significant increases in revenue and profit sales and profits we continue to see upward trajectory in terms of sales and marked record high sales during this quarter we also saw record high op in the past due to the unparalleled hit game ummusume but we booked a record high q2 op this period and this is a sgna expenses and we welcome 402 new employees and the number of employees have trended on schedule and this is the P&L and this is the balance sheet with respect to the forecasts as you can see we are trending well overall we have achieved a lower end of the forecast range during our first half and we are certain we'll be able to over deliver on our forecast but things may be a little slower during the second half and as it is difficult to accurately revise our forecasts we have decided to keep the current forecast with respect to the media and ip business we have continued to strengthen our foundations while increasing sales it is doing well with resected op abema has started to contribute to profits thus our op has multiplied by 1.7 times y-on-y as part of our programming strategy we are putting even greater efforts into our original programs and we have come to be known for creating strong original series we aired 30-hour program to celebrate our 10th anniversary and it received over 200 million views as announced the other day we will be producing the anime of kagurabachi a popular weekly shonen junk comic which will go on air april 2027. we will continue to establish a structure that will enable us to operate in an end-to-end business including a creation distribution and merchandising of original ips and movies that will become a global hit next moving on to the advertising business we have finally reached the light at the end of the tunnel ahead of schedule after our large scale clients departure and we will continue to increase revenue and profits from here on the upgrading profit has significantly improved as well we will utilize our advertising effectiveness to expand our market share and we will take advantage of our investment in ai related advertising technologies to expand our reach next moving on to the game business in the second quarter we do have many anniversaries so the game business trended very well we have increased profits as well The global sales have increased by 3.5 times year on year. We have put in place the right organization to offer existing titles over the long term and we are developing new titles over the midterm. Advanced sign up for Hollow Light Dreams is tracking well. Grand Blue Fantasy Re-League and its Ragnarok will launch on July 9th. We have high hopes for this title as the previous series sold more than 2 million units worldwide. In terms of the mid- to long-term strategy, as each of our businesses continues to establish a stable foundation, we aim to build a multi-layered business structure centered around IP and further strength and collaboration across our businesses. This concludes my explanation. Thank you very much. We would like to conclude CyberAgent's FY2026 second quarter earnings briefing. If you have any questions, please reach out to the IR team. Thank you very much for watching today.