CyberAgent Reports First Half Results; Group Sales Up 38.0%, Operating Income Rises 70.1%.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, May 8, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - CyberAgent A remote call center agent stationed at home or at a satellite center, who connects to the "real" call center using a PC and softphone. The key characteristic of a cyberagent is that the person's statistics, performance and real time status be completely transparent to the supervisors at , Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 4751), a Tokyo-based leader in Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the media markets, has reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for the first half ended March 31, 2007, with net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight rising 38.0% on the first half in the previous year to 37,450 million yen, and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. also up 70.1% on the previous first half. As the market for Internet business continues to expand, Cyberagent group results were driven by solid growth in site listing (search results) advertising and main portal site Noun 1. portal site - a site that the owner positions as an entrance to other sites on the internet; "a portal typically has search engines and free email and chat rooms etc. advertising sales in the advertising agency business, as well as sharp advances in the mobile business and commission and fee collection businesses such as the finance-related business and online game services. The Company posted product valuation losses for netprice, ltd., however, and made up-front up-front or up·front Informal adj. 1. Straightforward; frank. 2. Paid or due in advance: up-front cash. adv. investments to expand blog blog, short for web log, an online, regularly updated journal or newsletter that is readily accessible to the general public by virtue of being posted on a website. media. Operating income rose nevertheless to 2,069 million yen from 1,217 million yen in the previous term, due to profit contributions from the advertising agency business, commission and fee collection business and the investment development business. Net income fell to 770 million yen, a decrease of 83.9% from 4,783 million yen in the previous term, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to corporate income taxes and the posting of tax expenses, including adjustments of income taxes. 1.) Consolidated Financial Results for the First Half Ended March 31, 2007
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(millions of yen)
First Half ended Mar. 31, FY Sept.30,
2007 % 2006 % 2006
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Net Sales 37,450 38.0 27,133 45.1 60,115
Operating Income 2,069 70.1 1,217 61.4 4,342
Ordinary Income 1,996 55.4 1,284 62.3 3,722
Net Income 770 (83.9) 4,783 163.6 4,300
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Net Income/Share (y) 1,167.28 7,281.15 6,536.49
Fully Diluted
Net Income/Share (y) 1,165.64 7,237.92 6,485.62
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Consolidated Financial Position
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As of March 31, FY Sept.30,
2007 2006 2006
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Total Assets 51,347 43,439 59,411
Shareholders' Equity 32,973 25,217 38,608
Shlders' Eqty Ratio (%) 53.4 58.0 53.8
Shlders' Eqty/share (y) 41,515.45 38,307.54 48,492.18
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Consolidated Cash Flows
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(millions of yen)
First Half ended March 31, FY Sept.30,
2007 2006 2006
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Cash Flow from
Operating Activities 66 (358) 2,171
Cash Flow from
Investing Activities (2,399) 2,576 1,073
Cash Flow from
Financing Activities (494) 4,761 5,452
Cash and Cash Equivalents
at Period End 17,044 18,167 20,028
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2.) Results by Business Segment i. Internet Media Business - Advertising The CyberAgent group has endeavored to expand its own operations, including the blog media "Ameba Blog" and "MicroAd," a user-generated advertising distribution service, as well as its subsidiary holdings such as the mobile media business of CA MOBILE, LTD. These efforts paid off with sales of 3,253 million yen, a 6.9% increase from 3,044 million yen in the previous term. The Company posted a loss of 1,302 million yen, compared to a 382 million yen loss in the previous term, due to up-front investments to expand services offered by "Ameba Blog." ii. Internet Media Business - EC (Sales) In the e-commerce/sales segment of its media business, the Company has been engaged in EC business such as mobile and PC "gathering" (joint purchasing) for netprice, ltd. and "ONE*FESTA FESTA Femtosecond Technology Research Association FESTA Fixed Fire Extinguishing System Twinned Agent " for CA MOBILE, LTD. As a result of continued efforts to expand supplier routes, sales in the Media Business EC Sales segment rose to 10,438 million yen, up 28.8% from 8,105 million yen. However, an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of 498 million yen was recorded as a result of appraisals at netprice, ltd., compared to a 322 million yen profit in the previous term. iii. Internet Media Business - EC (Commission/Fee collection) For the commission and fee-based EC segment of this media business, the Company is primarily engaged in collecting fees for mobile sites mainly for CA MOBILE, LTD., online games by GCREST Co., Ltd., and the brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. business in foreign exchange on guarantee trading through CyberAgent FX. Sales for the Media Business EC Commission and Fee Collection segment rose to 2,812 million yen, up 32.4% from 2,124 million yen in the previous term, due to a steady increase in the number of memberships accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. market expansion. The Company recorded operating income of 431 million yen, a decrease of 23.3% from a 563 million yen profit in the previous term. iv. Internet Media Business - Other The Internet media business (Other) includes research services, contents provision and publishing services. Sales for this segment increased 33.3% to 1,258 million yen from 944 million yen in the previous term. The Company recorded 29 million yen in operating income, representing a 34.1% decrease from 44 million yen in the previous term. v. Internet Advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. Agency Business - Company Tie-up tie-up n. A temporary immobilization, as of traffic, work, or mechanical operation. Noun 1. tie-up - a social or business relationship; "a valuable financial affiliation"; "he was sorry he had to sever his ties with other Media In addition to robust sales of Company group media, the tie-up media business also expanded. As a result, sales fell 2.7% to 2,907 million yen from 2,989 million yen. The Company recorded operating income of 367 million yen, a 10.1% decrease from 408 million yen in the previous term. vi. Internet Advertising Agency Business - Other Company Media The Company experienced an increase in the site listing advertising (search results) it handles, reflecting heightened customer needs, while sales of existing media handled remained firm, particularly for its main portal site. As a result, sales for the Internet Advertising Agency business - Other Company Media business rose 36.0% to 12,365 million yen, from 9,093 million yen in the previous term. The Company recorded an operating loss of 213 million yen as compared with a loss of 4 million yen in the previous term. vii. Internet Advertising Agency Business - Other The Company's advertising agency business - Other includes businesses such as banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. advertisements, made-to-order made-to-or·der adj. 1. Made in accordance with particular instructions or requirements; custom-made. 2. Very suitable: a made-to-order job. Adj. 1. homepage See home page. creation and SEO (Search Engine Optimization, Search Engine Optimizer) See search engine optimization. (search engine optimization Designing a Web site so that search engines easily find the pages and index them. The goal is to have your page be in the top 10 results of a search. Optimization includes the choice of words used in the text paragraphs and the placement of those words on the page, both visible and hidden ). Sales for this segment of the advertising agency business rose 78.9% year-on-year to 871 million yen, as compared with 487 million yen in the previous term. The Company recorded an operating income of 63 million yen, an 1,483.2% increase on 3 million yen profit in the same period last year. viii. Internet Development Business The Company's Investment Development Business consists primarily of managing investments and funds to generate capital gains. Sales for the investment development business were 3,543 million yen, up 932.9% from 343 million yen in the previous term. The company recorded 3,192 million yen in operating income, a 1,177.2% increase from 249 million yen in the previous term. 3) Outlook for the Year Ending September September: see month. 30, 2007 In the fiscal year ending September 30, 2007, the Company expects the expansion of the Internet business market to promote steady growth in Internet advertising sales, primarily for the headquarters Internet advertising business, as well as continued expansion of the mobile business and commission and fee collection businesses such as the finance-related business and online game services. Accordingly, the Company's forecast of consolidated net sales of 75,000 million yen for the year ending September 30, 2007, an increase of 24.8% over the previous period, remains unchanged from the forecast announced on November November: see month. 7, 2006.
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(millions of yen)
Fiscal Year ending September 30, 2007
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Net Sales 75,000 +24.8%
Ordinary Income 5,000 +15.1%
Operating Income 5,000 +34.3%
Net Income 2,500 -41.9%
Net Income/Share 3,788.06 yen
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The Company revised its earnings estimates for netprice.com, ltd. on April 26, 2007, but this is offset by the strong performance of the advertising agency business, commission and fee collection business and investment development business. Accordingly we have not changed our forecast from that announced on November 7, 2006 and the Company maintains projected operating income of 5,000 million yen, ordinary income of 5000 million yen and net income of 2,500 million yen. The Company is also maintaining non-consolidated operating results forecasts as announced on November 7, 2006, including sales of 39,000 million yen, an increase of 25.8% over the previous term. There has been no change for ordinary or net income since the forecasts announced on November 7, 2006. The Company expects 1,000 million yen in ordinary income and 500 million yen in net income for the period. Dividends The Company is forecasting an annual dividend of 1000 yen per share payable at the end of the financial year. 4) Consolidated Financial Position and Cash Flows Consolidated assets at the end of the first quarter decreased 8,064 million yen from the end of the previous fiscal year, due to a decrease in the assessed value of listed shares held as operating investment securities and the use of company funds. Consolidated liabilities decreased 2,429 million yen, due to a decline in deferred tax liabilities resulting from the decrease in the assessed value of listed shares held as operating investment securities. Net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. decreased 5,635 million yen due to a decrease in the assessed value of investment securities. As a result, the equity ratio fell 0.4 points from the end of the previous fiscal year to 53.4% at the end of the first half. Cash and cash equivalents ("cash") at the end of the period totaled 17,044 million yen, a decrease of 2,983 million yen from 20,028 million yen at the end of the previous consolidated financial year. i) Cash flow derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from operating activities for this consolidated first half was 66 million yen, as compared with a 358 million yen outflow in the previous term. This was primarily due to the posting of income. ii) Cash flow used in investing activities during the consolidated first half totaled 2,399 million yen, as compared with a 2,576 million yen outflow during the same period last year, primarily due to the acquisition of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . iii) Cash flow used in financing activities during the consolidated first half was 494 million yen, as compared with a 4,761 million yen outflow during the same period last year, primarily due to the payment of dividends. * Business results forecasts represent the judgment of the Company, based on information obtainable at the time of writing; they involve contributing factors such as risk and elements of uncertainty; hence actual results may differ from the forecast results. About CyberAgent, Inc. CyberAgent, Inc. (TSE: 4751) is a leading on-line advertising agency and media representative company. Established in 1998, and listed on the Tokyo Mothers Exchange in 2000, the CyberAgent group is committed to contributing to a new society through its work on the Internet, not only in its fields of advertising and media, but through finding promising new business and investing aggressively in developing new business. For more information, please visit http://ir.cyberagent.co.jp/ir_e/ Source: CyberAgent, Inc. Contact: CyberAgent Public and Investor Relations Division Akiko Kashiwa kashiwa_akiko@cyberagent.co.jp Tel: +81-3-5459-0227 Japan Corporate News Network. All rights reserved. |
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