CyberAgent Inc. warned that next year’s earnings could fall by up to 30% as the Tokyo-based internet company grapples with the unpredictable nature of its gaming division, which now accounts for the bulk of its profitability.
The company projected operating profit of ¥50 billion to ¥60 billion ($323 million to $388 million) for the fiscal year ending September 2026, according to President Susumu Fujita. The unusually wide forecast range reflects challenges in predicting game performance a year ahead, he said during a results briefing on Thursday.
The cautious outlook follows a banner year in which CyberAgent nearly doubled gaming profits to ¥60 billion on revenue of ¥217 billion, driven by hits including SD Gundam G Generation Eternal and an English version of Uma Musume Pretty Derby. The division’s fourth-quarter operating profit surged nearly sixfold.
Revenue for the current fiscal year is expected to rise just 0.7% to ¥880 billion, suggesting the company’s advertising and media businesses will struggle to offset the anticipated gaming slowdown. CyberAgent’s ABEMA streaming platform turned profitable after a decade of losses, but the gains remain modest compared to gaming’s contribution.
The company also announced a leadership transition, with Fujita set to hand the presidency to an executive named Yamauchi at next month’s shareholder meeting.
