CyberAgent Reports Results for the Full Year Ended Sept. 30, 2006; Net Sales Rise 38.9%.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 8, 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 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 fiscal year ended September September: see month. 30, 2006. 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 38.9% to 60,115 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 63.7% to 4,342 million yen, and ordinary income rose 37.9% to 3,722 million yen over the previous period. The primary factors contributing to the increase in sales were the expansion of respective company mediums within the Group; solid sales growth at Group subsidiaries netprice, ltd. and CA MOBILE, LTD.; remarkable sales progress in mobile, financial, online games and commission/fee collection businesses; and a smooth transition to advertised site listings (search results) 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 advertising agency operation domain. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite prior investments in system development and advertising aimed at increasing media memberships, operating and ordinary income increased this period 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. Net income in the current fiscal year was 4,300 million yen, a 72.9% increase over the previous year, as a result of extraordinary profits from the sales of investment securities and other stock and gain on change in the shareholding ratio of equity-method affiliates. 1. Consolidated Financial Results for the Full Fiscal Year Ended September 30, 2006
(Millions of yen)
----------------------------------------------------------------------
Fiscal Year ended Fiscal Year ended
9/30/2006 % change 9/30/2005 % change
----------------------------------------------------------------------
Net Sales 60,115 38.9 43,273 61.9
Operating Income 4,342 63.7 2,651 53.6
Ordinary Income 3,722 37.9 2,700 54.0
Net Income 4,300 72.9 2,487 (38.0)
Net Income/Share (y) 6,536.49 7,576.48
Fully Diluted
Net Income/Share (y) 6,485.62 7,465.30
----------------------------------------------------------------------
Return on Equity (ROE) 16.6 12.9
Return on Assets (ROA) 8.2 9.2
Ordinary Income to
Operating Revenue Ratio 6.2 6.2
----------------------------------------------------------------------
* No. shares outstanding:
during Fiscal Year 2006 657,961
during Fiscal Year 2005 326,306
----------------------------------------------------------------------
Consolidated Financial Position
----------------------------------------------------------------------
As of Sept. 30, As of Sept. 30,
2006 2005
----------------------------------------------------------------------
Total Assets 59,411 31,830
Shareholders' Equity 38,608 19,781
Shlders' Eqty Ratio (%) 53.8 62.1
Shlders' Eqty/share (y) 48,492.18 60,312.43
----------------------------------------------------------------------
* No. shares outstanding
as of Sept. 30, 2006 659,424
as of Sept. 30, 2005 327,742
----------------------------------------------------------------------
Consolidated Cash Flows
----------------------------------------------------------------------
Fiscal year ended Fiscal year ended
Sept. 30, 2006 Sept. 30, 2005
----------------------------------------------------------------------
Cash Flow from
Operating Activities 2,171 1,612
Cash Flow from
Investing Activities 1,073 (2,689)
Cash Flow from
Financing Activities 5,452 19
Cash and Cash Equivalents
at Period End 20,029 11,186
----------------------------------------------------------------------
Reference: Results by Quarter
(Millions of yen)
---------------------------------------------------------------------
Fiscal Year 2006
First Second Third Fourth
Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
Sales 13,275 13,857 14,580 18,402
Operating income 604 612 615 2,510
Ordinary income 657 626 427 2,010
Quarterly net income 2,490 2,292 (239) (242)
Total assets 35,438 43,439 44,776 59,411
Net assets 21,686 25,217 30,640 38,608
---------------------------------------------------------------------
Fiscal Year 2005
First Second Third Fourth
Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
Sales 8,582 10,118 11,360 13,213
Operating income 247 506 628 1,270
Ordinary income 253 537 635 1,272
Quarterly net income 576 1,238 132 540
Total assets 27,066 28,358 29,598 31,830
Net assets 18,573 19,199 19,304 19,781
---------------------------------------------------------------------
2. Group Organization CyberAgent Group is composed of CyberAgent, Inc. (the Company), 38 consolidated subsidiaries, and 1 subsidiary and 9 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. to which the equity method is applied. The main businesses of the Group are planning and production of Internet media, overall planning and production of ads 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) and investment development. 3. Consolidated Sales by Business i) Internet Media Business - Advertising We posted sales gains in 'Ameba Blog' and other media holdings as well as in subsidiaries' media, including the price comparison website 'EC Navi' operated by EC Navi Company and the mobile media operated by CA MOBILE, Ltd. We also worked to establish new sales techniques. Efforts to expand the number of advertising agencies led to total sales of 5,803 million yen for Internet Media Business - Advertising, up 17.8% from 4,928 million yen in the previous year. The expanded services offered by the Ameba business and initial investments in system development resulted in a 1,316 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. . (A 331 million yen loss was recorded in the previous period.) ii) Internet Media Business - EC (Sales) Internet Media Business - EC (Sales) focuses on the 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. operations of mobile and PC site 'gathering' (joint purchasing) operated by netprice, ltd., and the 'ONE*FESTA' site operated by CA MOBILE, Ltd. Steady growth in membership coupled with an expansion in supplier channels paid off with sales totaling 16,548 million yen, up 29.8% compared to 12,747 million yen in the previous period. The Company posted operating income of 561 million yen, a 193.8% gain from 191 million yen in the previous year. iii) Internet Media Business - EC (Commission/Fee Collection) Internet Media Business - EC (Commission/Fee Collection) operations consist primarily of collecting fees charged by mobile sites operated by CA MOBILE, fees levied on online games such as 'Trickster' operated by GCREST Co., Ltd., and commissions on foreign exchange guarantee transactions operated by CyberAgent FX (formerly CA Capital, LTD.). As a result of a steady increase in memberships in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with market expansion, sales for Internet Media Business - EC (Commission/Fee Collection) increased 59.5% to 4,579 million yen, from 2,872 million yen in the previous period, while operating income stood at 1,152 million yen, a gain of 30.9% from 880 million yen in the previous period. iv) Internet Media Business - Other Internet Media Business (Other) includes the research, content and publishing businesses. Sales for Internet Media Business (Other) decreased 5.2% to 1,990 million yen, from 2,099 million yen the year before. Operating income totaled 66 million yen, a 68.1% increase compared with the 39 million yen posted in the previous period. 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 16.7% to 6,182 million yen, up from 5,299 million yen in the previous year, while operating income rose 2.7% to 753 million yen, up from 733 million yen in the previous year. This can be attributed to robust sales of company media, in addition to an augmented product line-up line-up Noun 1. people or things assembled for a particular purpose: Christmas TV line-up 2. and expansion in affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: media resulting from the launch of new media. vi) Internet Advertising Agency Business - Other Company Media In addition to strong sales to major portal sites and existing media handled, advertising on site listings (search results) geared toward customer needs was also expanded. As a result, sales for the Internet Advertising Agency Business - Other Company Media increased 54.0% to 20,225 million yen, from 13,130 million yen in the previous period. We posted an operating loss of 204 million yen, compared to a loss of 16 million yen last year. vii) Internet Advertising Agency Business - Other Internet Advertising Agency Business - Other includes 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. 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, commissions for website construction and 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 (SEO (Search Engine Optimization, Search Engine Optimizer) See search engine optimization. ). Sales amounted to 1,020 million yen, up 72.4% from 591 million yen in the previous period. Operating income amounted to 108 million yen, compared to a 132 million yen loss last year. viii) Investment Development Business Investment Development Business manages investments and funds to generate capital gains. This business generated 3,764 million yen in sales, a 134.6% gain compared to 1,604 million yen in the previous period. Operating income came to 3,235 million yen, up 128.8% from 1,413 million yen the previous year. 4. Consolidated Financial Position CyberAgent Group held assets worth 59,411 million yen at the end of the current consolidated fiscal year, up 27,580 million yen over the end of the previous year. This was due to an increase in cash and deposits resulting from the market value realized by listing shares held as operational investment securities, the sale of investment securities and other stocks and the issuance of shares to several shareholders. Liabilities totaled 20,803 million yen, up 10,790 million yen compared to the end of the previous consolidated fiscal period. This can be attributed to an increase in deferred tax liabilities when shares held as operational investment securities were listed and an increase in accounts payable resulting from business expansion. In addition to operating income, CyberAgent posted gains on the sale of investment securities and gains on changes in the shareholding ratio of equity-method affiliates as extraordinary gains. As a result, 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. increased 16,790 million yen over the previous year to 38,608 million yen. Consequently, 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. to total assets at the end of the consolidated fiscal year dropped 8.3 points to 53.8% compared to the end of the previous fiscal year. Changes in shareholders' equity to total assets are shown below.
----------------------------------------------------------------------
FY ended FY ended FY ended
09/06 09/05 09/04
----------------------------------------------------------------------
Shareholders' equity
to total assets 53.8% 62.1% 70.1%
Market price-based
shlders' equity to total assets 169.9% 426.3% 428.9%
Length for redemption of debt (years) 0.18 0.08 0.07
Interest coverage ratio 745.5 307.4 983.5
----------------------------------------------------------------------
Consolidated Cash Flows Cash and cash equivalents ("cash") at the end of the consolidated fiscal year were 20,029 million yen, 8,842 million yen less than at the end the previous period (11,186 million yen). i) Cash flow from operating activities Cash flow from operating activities for this consolidated fiscal year was 2,171 million yen, as compared with 1,612 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 1,073 million yen, as compared with 2,689 million yen in the previous period. Cash used for investing activities was mainly for sale of stocks such as 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 5,452 million yen, as compared with 19 million yen in the previous period, mainly resulting from issuing shares to minority interests. 5. Consolidated Projections for Fiscal Year 2007 (Oct. 1, 2006 to Sept. 30, 2007) We expect the Internet advertising market and the EC market to mark steady growth as 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 gain in popularity. Given this business environment, we expect sales and profits to benefit significantly in this next fiscal period from advertisement placement in Group media and site listings (search results), growth in EC commission/fee collection due to the strength of media such as PCs and mobile devices, and sales of operational investment securities in the Investment Development Operations business. As a result, we expect consolidated 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 of 75,000 million yen for the fiscal year ending September 30, 2007. Projected Consolidated Results for the Year Ending September 30, 2007
----------------------------------------------------------------------
(Millions of yen)
Fiscal year ending
September 30, 2007
----------------------------------------------------------------------
Total Sales 75,000
Operating Income 5,000
Ordinary Income 5,000
Net Income 2,500
Net Income/Share (y) 3,791.18
----------------------------------------------------------------------
Although affected by factors in the market and business environment, we expect the cost of sales to increase as sales expand. Higher advertising costs incurred to reinforce re·in·force v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. Group media and increased personnel costs from new hiring that follows business expansion will inevitably raise selling, general and administrative expenses, but we will continue to improve our cost-consciousness by enhancing the cost management systems used for our in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. projects and by our subsidiaries. As a result, we expect consolidated operating income of 5,000 million yen and consolidated ordinary income of 5,000 million yen. As regards non-consolidated operating performance for fiscal year 2007, CyberAgent forecasts operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of 39,000 million yen, ordinary income of 1,000 million yen and net income of 500 million 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- mid- pref. Middle: midbrain. to 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. through business growth and improvement of return on equity, the Company hopes to have regular dividends connected to performance. Practically speaking, the Company aims for 30% of the amount after 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 income. The Company has decided on this amount in overall consideration of financial stability and internal reserves for future business development. 7. Medium-Term Business Strategy CyberAgent Group not only strengthens sales and marketing to suit diverse client needs, 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 In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. investment business value through agressive investment in order to benefit from capital gains through business partnerships and the Company's extensive industry network. Going forward, it is the Group's policy to develop a number of highly profitable companies as an all-around Internet business through powerful marketing, the ability to generate new customers and 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 : Operating performance projections are based on certain assumptions and information available at the time of writing. Actual results and operating performance could differ from the projections above, which include some risks and uncertain factors. 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, Inc. Public and Investor Relations Group Akiko Kashiwa Tel: +81-3-5459-0227 E-mail: kashiwa_akiko@cyberagent.co.jp Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion