CyberAgent Reports Third Quarter Results; Group Sales Up 38.8%, Net Income Rises 133.4%.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, Aug 3, 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 reported consolidated results for the third quarter ended June June: see month. 30, 2006. Results continued to rise across the board, 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 38.8% 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 32.6%, and net income rising 133.4%. During the term the Internet business market continued to expand with 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 and the introduction of fixed tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic systems for mobile phones. The Cyberagent Group continued to expand its own Internet media-based group media, reinforce the EC business and move into new businesses. Further growth is expected, driven by the increasing influence of Internet media, an expanding EC market and new service possibilities, and there is no change to the Group's forecast for the full year with respect to ordinary and net income. Consolidated sales rose 38.8% to 41.7 billion yen, driven by broad expansion in the AmebaBlog-centered 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, steady growth in paid site listing advertisements (search results) for the Company's advertising agency business and mjor 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 segment, firm growth in netprice Ltd and C.A. Mobile, Ltd.-centered marketing business, and sharp advances in commission and fee collection business regards mobile related businesses and online game services. Operating income rose 32.6% to 1.8 billion yen, due to higher sales and profit contributions from mobile and investment development businesses, and in spits of increased staffing and personnel costs, and 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. Net income rose 133.4% to 4.5 billion yen largely on extraordinary gains on the sale of investment securities and gains from change in equity. 1.) Consolidated Financial Results for the Third Quarter Ended June 30, 2006
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(millions of yen)
Third Quarter ended June 30, FY Sept. 30,
2006 % 2005 % 2005 %
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Net Sales 41,713 38.8 30,060 59.4 43,273 61.9
Operating Income 1,832 32.6 1,381 4.9 2,651 53.6
Ordinary Income 1,711 20.0 1,427 6.7 2,700 54.0
Net Income 4,543 133.4 1,946 (41.3) 2,487 (38.0)
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Net Income/Share(y) 6,910.14 5,974.40 7,576.48
Fully Diluted
Net Income/Share (y) 6,857.86 5,899.87 7,465.30
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Consolidated Financial Position
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As of June 30, FY Sept. 30,
2006 2005 2005
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Total Assets 44,776 29,598 31,830
Net Assets 30,640 19,304 19,781
Shlders' Eqty Ratio (%) 55.2% 65.2 62.1
Shlders' Eqty/share (y) 37,510.95 58,993.70 60,312.43
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Consolidated Cash Flows
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(millions of yen)
Third Quarter ended June 30, FY Sept. 30,
2006 2005 2005
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Cash Flow from
Operating Activities 524 323 1,612
Cash Flow from
Investing Activities 1,229 (1,011) (2,689)
Cash Flow from
Financing Activities 4,949 (281) 19
Cash and Cash Equivalents
at Period End 18,013 11,272 11,186
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2.) Results by Business Segment i. Internet Media Business - Advertising Market expansion continued for media properties including Ameba Blog, MicroAd and others - media owned by the company - while new marketing avenues were developed for KEITAIclick, a property owned and run by C.A.Mobile, Ltd. With further results from aggressive advertising agency business expansion, media business advertising sales rose to 4.4 billion yen, an increase of 23.4% over 3.6 billion yen for the previous term. 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 564.9 million yen was recorded, as compared with an operating loss of 88.5 million yen in the previous term, due to Ameba service expansion 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. As a result, sales rose by 34.9% to 12.0 billion yen from 8.9 billion yen in the previous term, operating income of 448.4 million yen was recorded as compared with an operating loss of 10.2 million yen in the previous term. 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 BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. 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 3.2 billion yen from 1.9 billion yen in the previous quarter, a year-on-year increase of 67.3%, due to a steady increase in the number of memberships accompanying market expansion. Operating income rose to 848.6 million yen, an increase of 52.6% from 556.0 million yen in the previous period. iv. Internet Media Business - Other Other media business includes research, provision of contents, publishing and others. Sales were 1.3 billion yen, down 34.9% from 2.1 billion yen in the previous term. However, operating income rose to 44.2 million yen, from 470.9 million yen in the previous term. Investment development Business is included in Other Service 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 Media Sales for the Company brand and mobile media business segment of the Company's advertising agency business rose 18.6% to 4.6 billion yen, as compared with 3.9 billion yen in the same period last year, due to a stronger product line-up line-up Noun 1. people or things assembled for a particular purpose: Christmas TV line-up 2. resulting from the introduction of new media formats and mobile media expansion, in addition to strong sales for Company media. The Company recorded 566.2 million yen in operating income, a year-on-year decrease of 1.5% from 575.0 million yen in the previous term. vi. Internet Advertising Agency Business - Other-Company Media The Company worked actively to expand its offering of site listing advertisements (search results) and Affiliate (outcome based payment) advertising 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 59.4% to 14.4 billion yen, from 9.0 billion yen in the same period last year, and recorded an operating loss of 77.3 million yen as compared with a profit of 58.3 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 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 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 83.5% year-on-year to 725.1 million yen, as compared with 395.2 million yen in previous term. The Company recorded operating income of 83.4 million yen, as compared with a 128.4 million yen loss in the same period last year. viii. Investment Development Business The Company's investment development business consists primarily of investments by corporate venture capital and managed funds. Sales for the investment development business were 670.2 million yen (no results for the same period last year). The Company recorded 512.7 million yen in operating income (no results for the same period last year). 3.) Financial Position and Consolidated Cash Flows Consolidated assets at the end of the third quarter increased 12.9 billion yen as regards the previous term to 44.7 billion yen, driven by increases in cash and deposits resulting from the sale of investment securities, and gains in evaluations of Investment Development Business securities. Consolidated liabilities increased 4.1 billion yen to 14.1 billion yen, due principally to increases in accounts payable from the gain in sales, among other items. 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 to 30.6 billion yen as a result of earned surplus Earned surplus See: Retained earnings earned surplus See retained earnings. reaching 10.9 billion yen from operating income together with extraordinary income from gains on the sale of investment securities and on changes in equity holdings. Cash and cash equivalents at the end of the period were 18.0 billion yen, an increase of 6.8 billion yen from 11.1 billion yen at the end of the previous consolidated financial year. i.) Cash flow from operating activities during the current consolidated period was 524.3 million yen, as compared with 323.6 million yen during the same period last year, due to an expansion of profits in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite payment of corporate income 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 during the consolidated third quarter was 1.2 billion yen, as compared with 1.0 billion yen during the same period last year, primarily due to sales of 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. during the consolidated third quarter was 4.9 billion yen, as compared with 281 million yen during the same period last year. 4.) Consolidated Operating Projections for the Fiscal Year 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 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 60 billion yen, an increase of 38.7% over the previous period, remains unchanged from the revision announced on January January: see month. 19, 2006. This increase is expected to result from the continuing 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, 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)
Consolidated Projections Fiscal Year ending Sept. 30, 2006
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Net Sales 60,000
Ordinary Income 4,000
Net Income 4,500
Net Income/Share (y) 6,828.65
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There also has been no change to the revisions in parent operating results, announced December December: see month. 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. * Projected full term net income per share of 6828.65 yen is calculated based on the number of issued shares as of the end of June 2006. * 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/ 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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