Japanese internet company CyberAgent reported mixed first-quarter results as its streaming platform ABEMA turned profitable while gaming revenue declined. The company posted sales of ¥203.8 billion ($1.4 billion) in the quarter, up 5.6% from a year earlier, driven by growth in media and advertising units.
The media division, which includes ABEMA and online betting platform WINTICKET, saw revenue rise 10.5% to ¥55.6 billion ($377 million). After years of investment, ABEMA delivered its first profit, helping the division post operating income of ¥1.4 billion compared to a loss a year ago.
Internet advertising remained a bright spot with revenue climbing 11.8% to ¥117.8 billion ($799 million), supported by new business development. However, the gaming unit struggled as declining player engagement in older titles led to a 15.1% drop in sales to ¥38.2 billion ($259 million).
Looking ahead, CyberAgent provided a cautious outlook, forecasting just 2.1% revenue growth to ¥820 billion ($5.6 billion) for fiscal 2025. The modest projection suggests management expects continued weakness in gaming and limited upside from recent improvements in streaming operations.
