CyberAgent Inc. reported a 74% surge in net income as its once-struggling media business finally turned profitable, offsetting weakness in its gaming division.
Net profit jumped to ¥15.86 billion ($106 million) for the six months ended March, while revenue increased 3.4% to ¥421.2 billion, the Tokyo-based company said Wednesday. Operating profit rose 9.7% to ¥29.17 billion.
The company’s ABEMA streaming platform, which had been losing money for years, delivered an operating profit of ¥4.73 billion compared with a loss a year earlier. The media segment’s earnings accelerated notably in the second quarter, generating ¥3.31 billion in profit.
“ABEMA’s profitability is just beginning, but it’s showing remarkable growth,” the company noted in its financial statements.
Gaming revenue declined 20% and operating profit fell 14% due to tough comparisons with last year’s successful console release “Granblue Fantasy: Relink.”
CEO Susumu Fujita pointed to the strong reception of mobile game “SD Gundam G Generation Eternal,” which has topped revenue rankings since its April 16 release. The title’s contribution will be reflected in third-quarter results.
CyberAgent maintained its full-year forecast of ¥21 billion in net profit on ¥820 billion in revenue.
