CyberAgent Inc. raised its annual profit forecast by 57% after new mobile games delivered stronger-than-expected performance in the quarter ended June, highlighting the volatile nature of Japan’s smartphone gaming market.
The Tokyo-based company now expects operating profit of ¥66 billion ($446 million) for the fiscal year ending September, up from a previous estimate of ¥42 billion. Revenue projections increased to ¥850 billion ($5.75 billion) from ¥820 billion.
The upward revision centers on gaming division results, where two titles launched in the third quarter generated significant momentum. “Shadowverse: Worlds Beyond,” a card battler released globally in June, and “SD Gundam G Generation Eternal” both exceeded internal expectations, according to the company. An English-language version of horse-racing simulation “Uma Musume Pretty Derby” also contributed to the improved outlook.
However, CyberAgent’s core internet advertising business showed signs of strain. A major client departure during the quarter led to a 4.6% decline in operating profit for that segment, underscoring the company’s dependence on a concentrated customer base.
For the nine months ended June, CyberAgent reported revenue of ¥632 billion ($4.28 billion), representing a 5.8% increase from the previous year. Operating profit surged 40% to ¥48.8 billion ($330 million), driven primarily by the gaming division’s resurgence after several quarters of lackluster performance.
