CyberAgent Reports Results for the Full Year Ended Sept. 30, 2005; Net Sales Rise 61.9%.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, Nov 11, 2005 - (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 Ltd., (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 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 full fiscal year ended September September: see month. 30, 2005. 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. rose 61.9% in this consolidated fiscal year to 43,273 million yen, 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. rose 53.6% to 2,651 million yen, and ordinary income rose 54.0% to 2,700 million yen, an increase from 1,753 million yen recorded the previous year. The primary factors contributing to the increase of sales were the expansion of respective company mediums within the Group; solid sales growth at Group subsidiary firm "netprice"; remarkable sales progress in mobile communications, financial related operations, online game business, and commission/fee collection operations; and a smooth transition to advertised site listings (search results/paid listing) and advertisement ADVERTISEMENT. A 'notice' published either in handbills or in a newspaper. 2. The law in many instances requires parties to advertise in order to give notice of acts which are to be done; in these cases, the advertisement is in general equivalent to notice. sales on some main portal sites 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. through our advertinsing agency operation domain. Although there had been prior investments in advertising costs for staff recruitment for new operations and new media start-ups, as well as in growth of media membership at these respective companies, operating and ordinary income increased this term 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 the early contributions of investment development operations, and the high profitability of EC and mobile communications operations. While profits accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. from the sales of investment securities, current term net earnings were influenced by reductions in amounts of corporate taxes and other losses carried forward, resulting in a net profit of 2,487 million yen, a decrease from 4,013 million yen, or 38.0%, from the previous year. 1.) Consolidated Financial Results for the Full Fiscal Year ended September 30, 2005
(millions of yen)
Fiscal Year ended
Sept. 30, 2005 % change Sept. 30, 2004 % change
Net Sales 43,273 61.9 26,278 65.0
Operating Income 2,651 53.6 1,726 -
Ordinary Income 2,700 54.0 1,753 -
Net Income 2,487 (38.0) 4,013 -
Net Income/Share (y) 7,576.48 24,939.92
Fully Diluted
Net Income/Share (y) 7,456.79 24,389.58
Return on Equity (ROE) 12.9 24.7
Return on Assets (ROA) 9.2 7.9
Ordinary Income to
Operating Revenue Ratio 6.2 6.6
* No. shares outstanding:
during Fiscal Year 2005 326,306
during Fiscal Year 2004 160,928
Consolidated Financial Position
As of Sept. 30, As of Sept. 30,
2005 2004
Total Assets 31,830 26,772
Shareholders' Equity 19,781 18,770
Shlders' Eqty Ratio (%) 62.1 70.1
Shlders' Eqty/share (y) 60,358.20 115,736.66
* No. shares outstanding
as of Sept. 31, 2005 327,742
as of Sept. 31, 2004 162,185
Consolidated Cash Flows
Fiscal year ended Fiscal year ended
Sept. 31, 2005 Sept. 31, 2004
Cash Flow from
Operating Activities 1,612 1,460
Cash Flow from
Investing Activities (2,689) 578
Cash Flow from
Financing Activities 19,654 1,574
Cash and Cash Equivalents
at Period End 11,186 12,435
2.) Position of the Corporate Group The CyberAgent Corporate Group is composed of CyberAgent Ltd. (the Company), 23 consolidated subsidiaries and 3 affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. for which the equity method is applied. The main businesses of the Corporate Group are planning, production and sales of Internet media, overall planning, production, management and agency for 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. (PC and mobile), operation of online shopping portals and investment development business. 3.) Consolidated Sales by Operation Although conventionally classified as "Internet Advertising Operations (Company or Other-Company Media)", "EC Operations", "Commission/Fee Collection Operations", "Web Integration Operations", or "Other", a true classification system appropriately reflecting the group's operations had become difficult. For this reason, in order to more suitably reflect actual business conditions, the group's internal management adopted a new operations classification system, changing the classifications to (I.) "Internet Media Business (Advertising, EC (Sales), EC (Agency/Fee Collection), Other)", (II.) "Internet Advertising Business (Company/Tie-Up Media, Other-Company Media, Other)", and (III.) "Investment Development Business." The numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. values for the corresponding period of the previous year were calculated after the changes in classification. i) Internet Media Business-Advertising While continuing to promoted the sale of subsidiary media such as the price comparison site "EC Navi" operated by EC Navi Company (formerly axiv.com) and the mobile media operated by CA MOBILE, Ltd., in addition to "Life Mile", "All Navi", and other media operated by our own company, we have also aimed at establishing new sales techniques. Further, as the result of having successfully started new media such as the "Ameba Blog" and the "CA Guide", developed new products, and expanded the number of ad agencies, sales for Internet Media Business-Advertising increased 28.8% to 8,626 million yen, from 6,697 million yen during the previous year. 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. amounted to 331 million yen, a decrease from 744 million yen registered the previous year due to an increase in the number of personnel resulting from new media start-ups and investments in their respective media. ii) Internet Media Business-EC (Sales) Internet Media Business-EC (Sales) consist of the mobile and PC site "Gathering" (Group buying system on internet) operated by netprice ltd. and the site "Pake o de Shopping" operated by CA MOBILE, Ltd. In addition to having steadily increased their memberships, sales for Internet Media Business-EC (Sales) increased 51.4% to 12,747 million yen, from 8,419 million yen in the previous year, due to increases in the number of purchase routes. Operating income amounted to 191 million yen, a decrease of 64.8% from the previous year, owing to prior investments in such areas as personnel increases resulting from new business start-ups and system investments. iii) Internet Media Business-EC (Commission/Fee Collection) Internet Media Business-EC (Commission/Fee Collection) consist of commission and fee collection operations for money charged by mobile sites operated by CA MOBILE, online games operated by GCREST Co., Ltd., and foreign exchange guarantee transactions operated by CA Capital, Ltd. As a result of growing memberships together with market expansion, sales for Internet Media Business-EC (Commission/Fee Collection) increased 105.3% to 2,872 million yen, from 1,398 million yen last year, while operating income registered 880 million yen, a 5,160.5% increase over last year. iv) Internet Media Business-Other Internet Media Business-Other include research operations, publication operations, etc. Sales for Internet Media Business-Other increased 69.5% to 2,488 million yen, from 1,468 million yen the year before. Operating income of 39 million yen represented a 78.7% decrease compared with last year. v) Internet Advertising 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 Internet Advertising Agency Business-Company Tie-Up Media increased 54.2% to 5,305 million yen, up from 3,441 million yen in the previous year, while operating income rose 101.8% to 733 million yen, up from 363 million yen in the previous year, due to substantial sales of product groups and mobile media resulting from new media start-ups and to a steady growth in sales of company media. vi) Internet Agency Business-Other Company Media In addition to the firm sales of conventional handling media, including main portal sites, site listings (search results/paid search) reflecting the needs of customers were also expanded. As a result, sales for Internet Advertising Agency Business-Other Company Media increased 73.6% to 13,295 million yen, from 7,659 million yen in the previous year, while an operating loss of 16 million yen was recorded, following a profit of 102 million in the previous year. vii) Internet Advertising Agency Business-Other Internet Advertising Agency Business-Other include such operations as banner advertising Banner Advertising A common form of advertising on the internet. The banner is an advertisement of 460x68 pixels, usually placed at the top of the page Notes: For an example, just look at the top of a page on almost any popular web site. , orders received for website construction, and event planning Event planning is the process of planning a festival, ceremony, competition, party, or convention. Event planning includes budgeting, establishing date and alternate date (rain date), selecting and reserving the event site, acquiring permits, and coordinating transportation . Sales for Internet Advertising Agency Business-Other amounted to 591 million yen, a decrease of 15.9% from 703 million yen last year. Operating losses amounted to 132 million yen, an increase from 45 million yen (loss) last year. viii) Investment Development Operations Investment Development Operations commenced in this consolidated fiscal year, and consist of investment development and support, acquisition of capital gains from sales of operating investments in securities, establishment of funds, and management. As a result, sales amounted to 1,604 million yen and operating income came to 1,413 million yen (there are no relative figures for the last fiscal year). 4.) Consolidated Financial Position Assets, Liabilities, Capital and 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. CyberAgent Group assets at the end of the consolidated fiscal year is 31,830 million yen, an increase of 5,058 million yen from the end of previous consolidated fiscal year, largely due to increases in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying resulting from growth in sales volume, and increases in tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , software and others resulting from business expansion. Group liabilities recorded at 10,013 million yen, an increase of 3,673 million yen from the end of previous period mainly due to an increase in purchase liabilities 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. the growth in sales volume. Group capital posts at 19,781 million yen, an increase of 1,011 million yen from the end of previous consolidated fiscal year as gains on sales of investments in securities were recorded, as well as operating income as extraordinary gain. As a result, shareholders' equity to total assets at the end of the consolidated fiscal year dropped decreased 8 points to 62.1% compared to the end of previous consolidated fiscal year. Changes in shareholders' equity to total assets are shown below.
FY ended 09/05 FY ended 09/04 FY ended 09/04
Shareholders equity
to total assets 62.1% 70.1% 77.9%
Market-price-based
shlders' eqty to total assets 426.3% 428.9% 144.1%
Length for redemption of debt 0.08 year 0.07 year 0.21 year
Interest coverage ratio 307.4 983.5 211.8
Consolidated Cash Flows Cash and cash equivalents ("cash") at the end of the consolidated fiscal year were 11,186 million yen, 1,248 million yen less than at the end the previous period (12,435 million yen.) i) Cash flow from operating activities Cash flow from operating activities for this consolidated fiscal year was 1,612 million yen, as compared with 1,460 million yen in the previous period, as a result of the achievements in operating income. 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 used for investing activities during the consolidated fiscal year was 2,689 million yen, as compared with 578 million yen in the previous period. Cash used for investing activities was mainly for acquisition of fixed assets and 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 flow from financing activities for the consolidated fiscal year was 19 million yen, as compared with 1,574 million yen in the previous period, mainly resulting from issuing shares to minority interests. 5.) Consolidated Projections for Fiscal Year 2006 - (Oct. 1, 2005 to Sept. 30, 2006) As regards our business environment, the Internet advertising market and EC market are projected to continue on solid ground along with the growing popularity of 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). and mobile. In these circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , placements of advertisements for our own media advertising and site listings (search results/paid listing), growth in the field of EC (Merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. , Commission/Fee Collection) due to the diffusion diffusion, in chemistry, the spontaneous migration of substances from regions where their concentration is high to regions where their concentration is low. Diffusion is important in many life processes. of media such as PC and mobile, sales of operating investments in securities and returns on funds and management in the area of investment and consultation are expected to continue strongly with a positive impact on operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. and profit in the next fiscal year. In light of the above, the CyberAgent Group is forecasting operating revenues of 60,000 million yen for the fiscal year ending September 30, 2006. Projected Consolidated Results for the Year Ending September 31, 2006
(Units: millions of yen)
Fiscal year ended
September 31, 2006
Total Sales 60,000
Ordinary Income 4,000
Net Income 2,000
Net Income/Share (y) 6,102.36
Following general conditions in the market, sales costs are expected to increase as operating revenue increases. Selling and general administrative expenses will also rise, as we expect increases in advertising costs to expand our own media, increased personnel costs as recruitment accompanies business expansion and increased costs for establishing new businesses. However, the Group will strive for ongoing improvements in cost-consciousness by continuously reinforcing re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. Group cost-management systems for each project and subsidiary. As a result, we expect consolidated ordinary income to be 4,000 million yen and consolidated net income to be 2,000 million yen. As regards non-consolidated operating performance for the fiscal year 2006, CyberAgent forecasts operating revenues of 31,000 million yen, ordinary income of 0 yen and net income of 0 yen. 6.) Basic Dividend Policy CyberAgent is aware that returning profits is a serious management issue for all shareholders along with raising share value in the mid to long term through business growth and improvement of return on equity, and the company hopes to have regular dividends connected to performance. In practical terms, the Company is aiming at 30% of the amount after deducting special factors such as tax deductions Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. due to extraordinary losses and losses carried forward from consolidated net profit and the Company has decided this amount in overall consideration of financial stability and internal reserves for future business development. The Company will pay a fiscal 2005 year-end dividend Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. of 1,200 yen, representing a 26.1% dividend payout ratio Dividend Payout Ratio The percentage of earnings paid to shareholders in dividends. Calculated as: . There was no interim dividend. 7.) Medium-Term Business Strategy The CyberAgent Group not only strengthens sales and marketing to suit clients' needs for diversity, but also focuses on upgrading existing media services and establishing and developing new businesses, including brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. to connect internet consumers with businesses and online shopping, such as in the area of EC. The Group strives to maximize investment business value through investing aggressively in order to benefit from capital gains through business partnerships and the Company's extensive industry network. In years to come, it is the Group's policy to develop a number of highly profitable companies as an all-round Internet business through our powerful marketing, our ability to generate additional customers, and our expertise in locating and developing internet related companies. Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : Regarding operating performance projections, we have forecast the foregoing based on certain assumptions and information not yet available at this point of time. Actual results and operating performances could differ from the projections above, as these projections include some risks and uncertain factors. Copyright [c] 2005 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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