CyberAgent FY2025 slides: Record profits, cautious 2026 outlook

Introduction & Market Context

CyberAgent Inc (TYO:4751) presented its fiscal year 2025 results on November 14, 2025, highlighting its 28th consecutive year of sales growth despite challenging market conditions. The company’s stock closed down 0.45% at 1,562.5 yen following the announcement, as investors weighed the strong performance against a more cautious outlook for FY2026.

The Japanese internet company reported significant improvements across its three main business segments: Media & IP, Internet Advertisement, and Game Business, with particularly strong results in gaming and a milestone achievement in its media streaming platform ABEMA, which turned profitable after a decade-long investment.

Executive Summary

CyberAgent achieved consolidated sales of ¥874.0 billion for FY2025, representing a 9.1% increase year-over-year, while operating profit surged 78.9% to ¥71.7 billion. Net income attributable to owners of the parent doubled to ¥31.6 billion, up 98.2% from the previous year.

As shown in the following chart of consolidated sales trend, the company has maintained consistent growth over its 25-year history:

This growth in sales has been accompanied by a significant improvement in operating profit, which has shown strong recovery over the past two years:

The company’s performance was driven by the profitability of its Media & IP business after a decade of investment, strong game sales with seven new titles launched during the fiscal year, and stable performance in internet advertising despite the loss of a major client.

Media & IP Business Highlights

After 10 years of investment, CyberAgent’s Media & IP business, centered around the ABEMA streaming platform, finally achieved profitability in FY2025. The segment reported sales of ¥231.5 billion (up 15.7% YoY) and an operating profit of ¥7.2 billion, representing an improvement of ¥8.7 billion from the previous year’s loss.

The quarterly performance shows the consistent growth trajectory of this business segment:

This sales growth translated into significant operating profit improvement, with Q4 showing a positive ¥1.2 billion result:

The company attributed this success to strong viewership growth across anime, sports, and original programming, with ABEMA’s weekly active users reaching 28.47 million:

CyberAgent has been strategically building its IP business over the past decade, creating a comprehensive ecosystem that spans from original content creation to monetization:

Game Business Performance

The Game Business emerged as CyberAgent’s strongest performer in FY2025, with sales increasing 10.6% to ¥216.7 billion and operating profit nearly doubling to ¥60.0 billion (up 96.5% YoY). The company released seven new games during the fiscal year, which contributed significantly to the segment’s growth.

Quarterly sales show a strong upward trend, particularly in Q4 which saw a 70% year-over-year increase to ¥76.3 billion:

Operating profit in the Game Business showed even more impressive growth, with Q4 operating profit reaching ¥25.6 billion, representing a 6.1x increase year-over-year:

A key driver of this growth was the company’s successful international expansion, with overseas game sales increasing six-fold year-over-year to reach ¥20 billion:

The company’s game portfolio was strengthened by several new titles, including licensed properties such as Jujutsu Kaisen:

Internet Advertisement Business

While the Internet Advertisement business maintained stable sales growth of 6.1% to reach ¥461.2 billion for the full year, operating profit decreased by 14.0% to ¥17.6 billion. The company attributed this decline to investments in new AI-driven business initiatives.

CyberAgent is leveraging artificial intelligence to create new opportunities in its advertising business:

The company emphasized its ability to adapt quickly to market changes and launch AI-powered solutions:

Forward-Looking Statements

Looking ahead to FY2026, CyberAgent provided a cautious outlook, forecasting sales of ¥880.0 billion (up 0.7% YoY) and operating profit in the range of ¥50.0-60.0 billion, representing a potential decline of 16.3% to 30.3% from FY2025’s record results.

The company explained that this wide range in operating profit forecast is due to the unpredictable nature of the Game business, which can see significant fluctuations based on new releases and player engagement.

CyberAgent’s medium to long-term strategy focuses on building a high-profit business model across its three main segments:

Leadership Changes

In a significant announcement, CyberAgent revealed upcoming changes to its leadership structure, with current President Susumu Fujita transitioning to the role of Chairman, while Takahiro Yamauchi will assume the position of President:

During the earnings presentation, Fujita emphasized the company’s consistent growth trajectory and highlighted the transformative impact of AI on the market environment. He expressed optimism about creating a solid foundation for continued success under the new leadership structure.

The leadership transition comes at a pivotal time for CyberAgent, as it seeks to capitalize on its newly profitable Media & IP business, maintain momentum in its Game business, and navigate the challenges in its Internet Advertisement segment amid technological disruption and increasing competition.

Full presentation:

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