CyberAgent Reports First Half Results; Group Sales Up 45.1%, Net Income Rises 163.6%.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 10, 2006 - (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 announced consolidated results for the first half ended March 31, 2006. Results were strong across the spectrum, with Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. rising 45.1% year-on-year, 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. rising 61.4%, and net income rising 163.6%. During the current consolidated interim period, the broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). environment for Internet-related industries continued to make progress as the economy showed signs of recovery. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Ministry of Internal Affairs and Communications Ministry of Internal Affairs and Communications (総務省 Sōmushō , the number of broadband users (total number of contracts for FTTH (Fiber To The Home) See FTTP. (fiber to the home), DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary (digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and ) and CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. Internet) continues to rise, with 22.3 million subscriptions as of December December: see month. 2005, as compared with 18.6 million subscriptions in December of the previous year. The number of Internet service contracts for mobile phone devices has also increased, from 75 million contracts at the end of December 2004, to 80 million contracts in the same period in 2005. The Company has continued to work to upgrade Group media, strengthen its EC business and develop new businesses, based on this environment. As a result, 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 for the current consolidated interim period were 27.1 billion yen, a 45.1% increase over the 18.7 billion yen recorded for the last interim period. This resulted from solid growth in the sale of goods, primarily for netprice, ltd., a surge in agency and fee-based businesses such as the mobile business, financial business and online games, site listing advertisements (search results) for the Company's advertising agency business and advertising sales for its 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. . Operating income rose to 1.2 billion yen, a 61.4% increase over 753.9 million yen in the same period last year, on the profit contributions of the Company's EC, mobile and investment development businesses, despite increased advertising and promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade incurred to expand memberships to its media and investment in systems development for the future. The Company also recorded extraordinary income from the sale of securities for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investment and gains due to changes in equity holdings, leading to interim net income of 4.7 billion yen, an increase of 163.6% compared with 1.8 billion yen in the previous interim period. 1.) Consolidated Financial Results for the First Half Ended March 31, 2006
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(millions of yen)
First Half ended Mar. 31, FY Sept. 30,
2006 % 2005 % 2005 %
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Net Sales 27,133 45.1 18,700 59.1 43,273 61.9
Operating Income 1,217 61.4 753 (10.8) 2,651 53.6
Ordinary Income 1,284 62.3 791 (7.4) 2,700 54.0
Net Income 4,783 163.6 1,814 (40.3) 2,487 (38.0)
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Net Income/Share(y) 7,281.15 5,576.81 7,576.48
Fully Diluted
Net Income/Share (y) 7,237.92 5,518.33 7,465.30
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Consolidated Financial Position
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As of March 31, FY Sept. 30,
2006 2005 2005
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Total Assets 43,439 28,358 31,830
Shareholders' Equity 25,217 19,199 19,781
Shlders' Eqty Ratio (%) 58.0% 67.7 62.1
Shlders' Eqty/share (y) 38,307.54 58,844.95 60,312.43
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Financial Position and Consolidated Cash Flows The Company's assets as of the end of the first half rose by 11.6 billion yen compared with the end of the previous consolidated fiscal year due to an increase in cash deposits as a result of the sale of shares to minority shareholders and re-evaluation of the market price owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de listing of shares held by the company as business securities. Liabilities increased by 3.4 billion yen over the end of the previous consolidated fiscal year due to an increase in accounts payable for goods procured for business expansion. Equity increased by 5.4 billion yen over the end of the previous consolidated fiscal year due to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. of 11.2 billion yen derived from operating income together with extraordinary income from gains on the sale of securities for long-term investment and on changes in equity holdings. The shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. ratio as of the end of the current consolidated interim period decreased by 4.1 percentage points from that of the previous consolidated fiscal year end, to 58.0%, due to the above results.
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(millions of yen)
First Half ended March 31, FY Sept. 30,
2006 2005 2005
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Cash Flow from
Operating Activities (358) 62 1,612
Cash Flow from
Investing Activities 2,576 719 (2,689)
Cash Flow from
Financing Activities 4,761 (120) 19
Cash and Cash Equivalents
at Period End 18,167 12,902 11,186
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Operating Conditions by Business Segment I.) Internet Media Business - Advertising The Company has worked to secure new sales avenues while continuing to expand sales for LifeMile, All Navi and Ameba Blog - media owned by the company - as well as for media owned by its subsidiaries, such as EC Navi, a price comparison site operated by EC Navi Ltd., and mobile media operated by C.A. Mobile, Ltd. Sales for the media business (advertising) rose to 3 billion yen, a 25.6% increase over 2.4 billion yen for the previous interim period, due to active expansion of agencies used. The Company recorded a 382.6 million yen 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. , as compared with a 72.4 million yen profit during the previous interim period, due to expansion of services for its Ameba business and investment in systems development for the future. II.) Internet Media Business - EC (Sales) In the goods-based segment of its media business, the Company has been engaged in EC businesses 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 C.A. Mobile, Ltd. Media business sales rose from 5.5 billion yen in the last interim period to 8.1 billion yen, a year-on-year increase of 47.3%, and operating income was 322.8 million yen as compared with a loss of 13.3 million yen in the previous interim period due to steady increases in the number of memberships and to expanded procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. routes. III.) Internet Media Business - EC (Commission/ Fee Collection) For the commission and fee-based EC segment of its media business, the Company is primarily engaged in collecting fees for mobile sites, mainly for C.A. Mobile, Ltd., online games such as Trickster trickster, a mythic figure common among Native North Americans, South Americans, and Africans. Usually male but occasionally female or disguised in female form, he is notorious for exaggerated biological drives and well-endowed physique; partly divine, partly human, , by GCREST CO., Ltd., and brokerage business for foreign exchange on guarantee trading through CA Capital, Ltd. Sales for the commission and fee-based segment of the Company's media business rose to 2.1 billion yen from 1.2 billion yen in the previous interim period, a year-on-year increase of 82.5%, due to a steady increase in the number of memberships accompanying market expansion. The Company recorded operating income of 563 million yen, an increase of 72.5% from 326.5 million yen in profit in the previous interim period. IV.) Internet Media Business - Other The remaining segment of the Company's media business includes research services, content provision and publishing services. Sales for this segment of the media business declined by 14.2% to 944.1 million yen, from 1.1 billion yen recorded for the same period last year. The Company recorded 44.2 million yen in operating income, as compared with a 3.3 million yen loss in the same period last year. 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 Sales for the Company brand and mobile media business segment of the Company's advertising agency business rose 16.5% to 3 billion yen, as compared with 2.6 billion yen in the same period last year, due to a stronger product line-up resulting from the introduction of new media formats and mobile media expansion, in addition to strong sales for Company media. The Company recorded 408.5 million yen in operating income, a year-on-year decrease of 11.8% from 463.4 million yen in the same period last year. VI.) Internet Advertising Agency Business - Other-Company Media The Company worked actively to expand its offering of site listing advertisements (search results) that reflect customer needs, in addition to strong sales for existing media handled, particularly for its main portal site. As a result, sales for the third-party media segment of its advertising agency business rose 60.2% to 9.1 billion yen, from 5.7 billion yen in the same period last year, and recorded an operating loss of 5 million yen (compared with a profit of 110.8 million yen in the same period last year). VII.) Internet Advertising Agency Business - Other The remaining segment of the Company's advertising agency business includes businesses such as banner advertisements, made-to-order homepage 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 83.6% year-on-year to 487.7 million yen (compared with 265.6 million yen in the same period last year). The Company recorded operating income of 4 million yen, as compared with a 108.6 million yen loss in the same period last year. VIII.) Investment Development Business The Company's investment development business consists of investments targeted at capital gains and fund management. Sales for the investment development business were 343.1 million yen (no results for the same period last year). The Company recorded 250 million yen in operating income (no results for the same period last year). Financial Position and Consolidated Cash Flows At the end of the first half, consolidated assets were up by 11.6 billion yen compared with the end of the previous consolidated fiscal year due to an increase in trade receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and in tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and software for business expansion. Consolidated liabilities rose by 3.4 billion yen over the end of the previous consolidated fiscal year due to an increase in accounts payable for goods procured for business expansion. Equity increased by 5.4 billion yen over the end of the previous consolidated fiscal year due to retained earnings of 11.2 billion yen derived from operating income together with extraordinary income from gains on the sale of securities for long-term investment and on changes in equity holdings. In consequence of the foregoing, the shareholders' equity ratio as of the end of the first half declined by 4.1 percentage points from that of the previous consolidated fiscal year end, to 58.0%. i.) Cash flow from operating activities Cash outflow from operating activities during the current consolidated interim period was 358.9 million yen, as compared with an inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. of 62 million yen during the same period last year. This was primarily due to the payment of corporate and other taxes. ii.) Cash flow from investing activities Cash Flow From Investing Activities An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent Cash inflow from investment activities during the current consolidated interim period was 2.6 billion yen, as compared with an inflow of 719 million yen during the same period last year. This was primarily due to the sale of long-term investment securities. iii.) Cash flow from financing activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. Cash inflow from financing activities during the current consolidated interim period was 4.8 billion yen, as compared with an outflow of 120.3 million yen during the same period last year. This was mainly due to the issuance of shares to minority shareholders. 2.) Consolidated Projections for the Year Ending September 31, 2006 The Internet advertising and EC markets are expected to expand steadily during the current consolidated fiscal year in line with the broadband and mobile environments. Based on this environment, the Company's consolidated net sales of 60 billion yen, an increase of 38.7% over the previous period, remains unchanged from the revision announced on January 19, 2006. This increase is expected to result from the trend of strong Internet advertising revenues, primarily for the headquarters advertising business, and strong sales for e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , mainly for netprice, ltd. It is also tied to the continuous expansion of the Company's mobile business, financial business, and EC commission/ fee collection from online games. There has been no change to the revisions announced January 19, 2006 with respect to ordinary income and net income. The Company expects to record 4 billion yen in ordinary income and 4.5 billion yen in net income.
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(millions of yen)
Fiscal Year ending September 30, 2006
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Net Sales 60,000
Ordinary Income 4,000
Net Income 4,500
Net Income/Share (y) 6,835.91
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There also has been no change to the revisions in parent operating results, announced December 15, 2005. The Company expects revenues of 31 billion yen, an increase of 41.5% over the previous period. There has been no change for ordinary or net income since the revisions announced on December 15, 2005. The Company expects zero ordinary income and 2 billion yen in net income for the period. * 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 (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. Today, the Group's activities grown to include "Internet Media Business - Advertising, EC (Sales), EC (Agency/Fee Collection), Other", "Internet Advertising Business - Company/Tie-Up Media, Other-Company Media, Other", and most recently "Investment Development Business." For more information, please visit http://ir.cyberagent.co.jp/ir_e/index.php. Source: CyberAgent, Inc. Contact: CyberAgent Public and Investor Relations Group Akiko Kashiwa kashiwa_akiko@cyberagent.co.jp Tel: +81-3-5459-0227 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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