Q3 2026 CyberAgent Inc Earnings Call
Speaker #1: FY2026 Q3, earnings briefing. This earnings briefing is being streamed. With respect to the content we will share with you today, please refer to the disclaimer contained in the earnings briefing material.
Operator: FY2026 Q3 earnings briefing. This earnings briefing is being streamed. With respect to the content we will share with you today, please refer to the disclaimer contained in the earnings briefing material. The President and CEO, Yamauchi, will take us through the results. This is the President, Yamauchi. I would like to take you through the FY2026 Q3 results. This quarter, we performed better than we anticipated. Thus, we are announcing an upward revision to our fiscal year forecast today. We have achieved multilayer growth in the media and IP business, mainly driven by ABEMA, which celebrated its 10th anniversary in April this year. The advertising business has continued to book high revenue growth rate following the Q2. Regarding the game business, casual games have become a global hit, and thus the sales has increased year-on-year.
Operator: FY2026 Q3 Earnings briefing. This earnings briefing is being streamed. With respect to the content we will share with you today, please refer to the disclaimer contained in the earnings briefing material. The President and CEO, Yamauchi, will take us through the results.
Speaker #1: The president and CEO, Yamauchi, will take us through the results. This is the president, Yamauchi. I would like to take you through the FY2026 Q3 results.
Takahiro Yamauchi: This is the President, Yamauchi. I would like to take you through the FY2026 Q3 results. This quarter, we performed better than we anticipated. Thus, we are announcing an upward revision to our fiscal year forecast today. We have achieved multilayer growth in the media and IP business, mainly driven by ABEMA, which celebrated its 10th anniversary in April this year. The advertising business has continued to book high revenue growth rate following the Q2.
Speaker #1: This quarter, we performed better than we anticipated. Thus, we are announcing an upward revision to our fiscal year forecast today. We have achieved multi-layered growth in the media and IP business, mainly driven by ABEMA, which celebrated its 10th anniversary in April this year.
Speaker #1: The advertising business has continued to book a high revenue growth rate following the second quarter. Regarding the game business, casual games have become a global hit, and sales have increased year on year.
Takahiro Yamauchi: Regarding the game business, casual games have become a global hit, and thus the sales has increased year-on-year. In terms of sales, we've booked record high consolidated sales for the Q3. This is the operating profit. The total OP over the last three quarters have increased year-on-year. No major changes to the SG&A expenses. We added 402 brand-new in April, bringing our total number of employees to 8,878. This is our PL, and this is our balance sheet.
Speaker #1: In terms of sales, we booked record-high consolidated sales for the third quarter. The DCC operating profit, as well as total operating profit over the last three quarters, have increased year on year.
Takahiro Yamauchi: In terms of sales, we've booked record high consolidated sales for the Q3. This is the operating profit. The total OP over the last three quarters have increased year-on-year. No major changes to the SG&A expenses. We added 402 brand-new in April, bringing our total number of employees to 8,878. This is our PL, and this is our balance sheet. Next, we would like to take you through the forecast. We have forecasted that our OP, operating profit, will decline year-on-year, but as of the end of the Q3, we have for the first time seen a growth in profit. This is the achievement rate against the new forecast. We plan to increase the dividend payout forecast as a result of the upward revision to our forecast. Next, moving on to the media and IP business. The sales grew steadily.
Speaker #1: No major changes to SG&A expenses. We added $402,000 for brand use in April, bringing our total number of employees to 8,878. This is our PO.
Speaker #1: And this is our balance sheet. Next, we would like to take you through the forecast. We had forecasted that our operating profit (OP) would decline year on year, but as of the end of the third quarter, we have for the first time seen a growth in profit.
Takahiro Yamauchi: Next, we would like to take you through the forecast. We have forecasted that our OP, operating profit, will decline year-on-year, but as of the end of the Q3, we have for the first time seen a growth in profit. This is the achievement rate against the new forecast. We plan to increase the dividend payout forecast as a result of the upward revision to our forecast. Next, moving on to the media and IP business. The sales grew steadily. ABEMA celebrated its 10th anniversary this April.
Speaker #1: This is the achievement rate against the new forecast. We plan to increase the dividend payout forecast as a result of the upward revision to our forecast.
Speaker #1: Next, moving on to the Media and IP business. Sales grew steadily. ABEMA celebrated its 10th anniversary this April, and we proactively invested in content, including anniversary special programs.
Takahiro Yamauchi: ABEMA celebrated its 10th anniversary this April. We proactively invested in content, including anniversary special programs. We are now able to steadily generate profits in the media and IP segment. Here are some examples of our 10th-anniversary programming. We plan to sustain customer interest by planning various content in the Q4 as well. We are currently putting a lot of effort into producing our own original programs. Our efforts have borne fruit. We have won numerous awards in Japan as well as in other markets. From June to July, with the contribution from our new original programs such as "KyouSuki" and "Shuffle Island," our WAU surpassed 31.37 million. At the moment, we have three animation studios in our fold, Cypic, CA Soa, and Studio Kurm.
Takahiro Yamauchi: We proactively invested in content, including anniversary special programs. We are now able to steadily generate profits in the media and IP segment. Here are some examples of our 10th-anniversary programming. We plan to sustain customer interest by planning various content in the Q4 as well. We are currently putting a lot of effort into producing our own original programs. Our efforts have borne fruit. We have won numerous awards in Japan as well as in other markets.
Speaker #1: We are not able to steadily generate profits in the Media and IP segment. Here are some examples of our 10th anniversary programming. We plan to sustain customer interest by offering various content in the fourth quarter as well.
Speaker #1: We are currently putting a lot of effort into producing our own original programs, and our efforts have borne fruit. We have won numerous awards in Japan, as well as in other markets.
Speaker #1: From June to July, we saw contribution from our new original programs, such as Kiyoski and Shuffle Island; hence, our WAU surpassed 31.37 million. At the moment, we have three animation studios in our fold: Sypic, CA SOAR, and Kern.
Takahiro Yamauchi: From June to July, with the contribution from our new original programs such as "KyouSuki" and "Shuffle Island," our WAU surpassed 31.37 million. At the moment, we have three animation studios in our fold, Cypic, CA Soa, and Studio Kurm. In addition to "Kagurabachi," which we introduced in the Q2, and the hit movie, "Chiikawa the Movie: The Secret of the Mermaid Island," produced by Cypic, we are seeing an increase in the pipeline. We took part in one of the largest anime events in the world, organized in the US in July.
Speaker #1: In addition to Kagurabashi, which we introduced in the second quarter, and the hit movie Chikawa the Movie: The Secret of the Mermaid Island, produced by Sypic, we are seeing an increase in the pipeline.
Takahiro Yamauchi: In addition to "Kagurabachi," which we introduced in the Q2, and the hit movie, "Chiikawa the Movie: The Secret of the Mermaid Island," produced by Cypic, we are seeing an increase in the pipeline. We took part in one of the largest anime events in the world, organized in the US in July. We felt firsthand the high expectations the global market has in our content such as "Kagurabachi." We hope to continue to gain knowledge and know-how through our global marketing efforts in North America, Europe, Asia, and other regions. We will continue to create original global hit content and build an end-to-end structure spanning content production through monetization. The internet advertising business. For the advertising business, we saw high growth rate in the Q3, growing by 8.9% Y-o-Y. We saw record high Q3 sales.
Speaker #1: Moreover, we took part in one of the largest anime events in the world, organized in the U.S. in July. We felt firsthand the high expectations that the global market has for our content, such as Kagurabashi.
Takahiro Yamauchi: We felt firsthand the high expectations the global market has in our content such as "Kagurabachi." We hope to continue to gain knowledge and know-how through our global marketing efforts in North America, Europe, Asia, and other regions. We will continue to create original global hit content and build an end-to-end structure spanning content production through monetization. The internet advertising business. For the advertising business, we saw high growth rate in the Q3, growing by 8.9% Y-o-Y.
Speaker #1: We hope to continue to gain knowledge and know-how through our global marketing efforts in North America, Europe, Asia, and other regions. We will continue to create original, global hit content and build an end-to-end structure spanning content production through monetization.
Speaker #1: Next, the internet advertising business. For the advertising business, we saw a high growth rate in the third quarter, growing by 8.9% ROI. We saw record-high third-quarter sales.
Takahiro Yamauchi: We saw record high Q3 sales. The operating profit grew double digits Y-o-Y. We also began selling ChatGPT ads in June, but our Kiwami Forecast TD that we developed has also become compatible, further strengthening our sales activities. Moreover, we developed Ad Operation AI and other AI agents dedicated to advertising distribution and operation to further improve our performance. As AI search becomes more widespread, we have endeavored to achieve higher performance in advertising.
Speaker #1: The operating profit grew, double digits, ROI. We also began selling ChatGPT ads in June, and our Kiwami Forecast TV that we developed has also become compatible, further strengthening our sales activities.
Takahiro Yamauchi: The operating profit grew double digits Y-o-Y. We also began selling ChatGPT ads in June, but our Kiwami Forecast TD that we developed has also become compatible, further strengthening our sales activities. Moreover, we developed Ad Operation AI and other AI agents dedicated to advertising distribution and operation to further improve our performance. As AI search becomes more widespread, we have endeavored to achieve higher performance in advertising. Thus, we newly established our AI Search Marketing Division in June. We will continue to adapt with agility so that we can deliver new value to our customers. Now moving on to the game business. Key titles continue to perform strong and casual games have become a global hit. Thus, we saw 20% Y-o-Y growth this quarter.
Speaker #1: Moreover, we developed ad operation AI and other AI agents dedicated to advertising distribution and operation to further improve our performance. As AI search becomes more widespread, we have endeavored to achieve higher performance in advertising.
Speaker #1: Thus, we newly established the AI search marketing division in June. We will continue to adapt with agility so that we can deliver new value to our customers.
Takahiro Yamauchi: Thus, we newly established our AI Search Marketing Division in June. We will continue to adapt with agility so that we can deliver new value to our customers. Now moving on to the game business. Key titles continue to perform strong and casual games have become a global hit. Thus, we saw 20% Y-o-Y growth this quarter. With respect to the OP, although there is volatility quarter-on-quarter, we significantly increased profits from the first to third quarter, booking JPY 50.9 billion.
Speaker #1: Now, moving on to the game business. Key titles continue to perform strongly, and casual games have become a global hit. As a result, we saw a 20% ROI growth this quarter.
Speaker #1: With respect to OP, although there is volatility quarter on quarter, we significantly increased profits from the first to third quarter, booking ¥50.9 billion.
Takahiro Yamauchi: With respect to the OP, although there is volatility quarter-on-quarter, we significantly increased profits from the first to third quarter, booking JPY 50.9 billion. On 23 July, we began providing the title "hololive Dreams" we jointly developed with Cover. It surpassed 1 million downloads on the first day and has come in at number 1 in the sales rankings in all of the stores released, including Apple, Google Play, and Steam. Released simultaneously worldwide on 9 July, "Granblue Fantasy: Relink" and "Ys VIII: Lacrimosa of DANA" has been highly acclaimed both in Japan and overseas, with both the new title and its predecessor ranking among the top-selling titles on Steam. Going forward, we will continue to maximize the longevity of our existing titles while pursuing global hit titles. Lastly, our medium- to long-term strategy.
Speaker #1: On July 23, we began providing the title Hololive Dreams, which we jointly developed with Cover. It surpassed 1 million downloads on the first day and has ranked number one in the sales rankings in all of the stores where it was released, including Apple, Google Play, and Steam.
Takahiro Yamauchi: On 23 July, we began providing the title "hololive Dreams" we jointly developed with Cover. It surpassed 1 million downloads on the first day and has come in at number 1 in the sales rankings in all of the stores released, including Apple, Google Play, and Steam. Released simultaneously worldwide on 9 July, "Granblue Fantasy: Relink" and "Ys VIII: Lacrimosa of DANA" has been highly acclaimed both in Japan and overseas, with both the new title and its predecessor ranking among the top-selling titles on Steam.
Speaker #1: Released simultaneously worldwide on July 9, Granblue Fantasy: Relink and Les Vegnes Lock have been highly acclaimed both in Japan and overseas, with both the new title and its predecessor ranking among the top-selling titles on Steam.
Speaker #1: Going forward, we will continue to maximize the longevity of our existing titles while pursuing global hit titles. Lastly, our medium- to long-term strategy: our key strengths include ABEMA, a powerful user acquisition engine, one of Japan's leading internet advertising businesses, and the country's number one smartphone game business.
Takahiro Yamauchi: Going forward, we will continue to maximize the longevity of our existing titles while pursuing global hit titles. Lastly, our medium- to long-term strategy. Our key strengths include Adevinta, a powerful user acquisition engine, one of Japan's leading internet advertising businesses, and the country's number 1 smartphone game business. By leveraging these strengths in combination, we will create globally competitive IP and maximize synergies across the group. This concludes my explanation. Thank you very much for listening.
Takahiro Yamauchi: Our key strengths include Adevinta, a powerful user acquisition engine, one of Japan's leading internet advertising businesses, and the country's number 1 smartphone game business. By leveraging these strengths in combination, we will create globally competitive IP and maximize synergies across the group. This concludes my explanation. Thank you very much for listening. This concludes CyberAgent's FY2026 Q3 earnings briefing. Should you have any questions, please reach out to the IR team. Thank you for watching today.
Speaker #1: By leveraging these strengths in combination, we will create globally competitive IP and maximize synergies across the group. This concludes my explanation. Thank you very much for listening.
Operator: This concludes CyberAgent's FY2026 Q3 earnings briefing. Should you have any questions, please reach out to the IR team. Thank you for watching today.
