CyberAgent Earnings: Solid Profitability Improvement Paves Way for Future Group Synergies

While CyberAgent’s first-quarter fiscal 2025 results largely met our expectations, we trim our revenue forecast for fiscal 2025 (ending September 2025) to JPY 837 billion from JPY 844 billion due to higher uncertainty about this year’s game title lineup. Meanwhile, we broadly maintain our operating income projection of JPY 44 billion due to better-than-expected profitability in the media and intellectual property segment. During the results presentation, CEO Susumu Fujita briefly explained CyberAgent’s medium- to long-term strategy, which focuses on expanding the group’s IP assets by leveraging synergies between the media, game, and ad ecosystems. We believe it is a good time for the company to take a more proactive approach for investment, underpinned by stable profit improvement over the past few quarters. Our medium-term forecasts and fair value estimate of JPY 1,200 remain unchanged. We think the shares are currently fairly valued.