Tokyo, July 26, 2012 - (JCN Newswire) - CyberAgent, Inc. (TSE: 4751), a Tokyo-based leader in Internet media markets, has announced results for the third quarter ended June 30, 2012. Net sales reached 101,902 million yen (up 15.0% from the same period of the previous year); operating income reached 14,557 million yen (up 34.3%); ordinary income reached 14,407 million yen (up 35.7%); and quarterly net income reached 6,912 million yen (up 24.0%).

The Group is in position to achieve its full year forcast. Net sales through three quarters stood at 78.4% of the forecast, Operating income stood at 85.6%, Ordinary income stood at 86.3%, and Net income stood at 81.3%. No revisions have been made to the consolidated forecast, announced on October 27, 2011.

In fiscal 2011, the domestic Internet business market expanded to about 14 trillion yen, and is expected to reach 15 trillion yen in 2012 and 22 trillion yen in 2016.(Nomura Research Institute, Ltd.) In particular, the social games market rapidly expanded to 257 billion yen in 2011, 1.8 times greater than the previous year, and is expected to expand to 342.9 billion yen in 2012.(Yano Research Institute Ltd.) The shipment volume of smartphones for fiscal 2011 was 24.17 million (56.6% of total shipment), 2.8 times larger than the previous year, showing the rapid shift to smartphones.(MM Research Institute, Ltd.)

Under such conditions, the Group has enriched the services for smartphone media, especially Ameba, and increased the number of social games. Also, the Group works toward reforming the comprehensive Internet business (former Internet advertising agency business).

1) Consolidated Financial Results for the Third Quarter Ended June 30, 2012

A. Business Results                                 (millions of yen)
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Third quarter ended June 30,      2012        %        2011       % 
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Net Sales                      101,902     15.0      88,620     26.1      
Operating Income                14,557     34.3      10,838     54.0
Ordinary Income                 14,407     35.7      10,620     51.0
Net Income                       6,912     24.0       5,574     14.4
Net Income/Share(y)                   10,675.45             8,595.55
Diluted Net Income/Share(y)           10,669.56             8,588.06
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B. Financial Position
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Total Assets                            127,675              111,689
Net Assets                               41,989               38,677
Shlders' Eqty Ratio(%)                     31.5                 33.0
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C. Dividends      
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Year ended                       2012 (Forecast)                2011
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(y)                                       3,500                3,500
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D. Forecast
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Year ending September 30,                  2012               Change 
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Net Sales                               130,000                  8.7
Operating Income                         17,000                 18.5
Ordinary Income                          16,700                 18.3
Net Income                                8,500                 16.1
Net Income/Share(y)                                        13,126.29 
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2) Results by Business Segment

(a) Ameba business

The Ameba business includes Ameba, Ameba Pigg and AMoAd, etc. Ameba's PV number for June 2012 was 33.9 billion PV (up 8.7 billion PV from the same month of the previous year), and subscribers totaled 23.59 million (up 7.14 million from the same month of the previous year).

In the current business year, advertising revenue and fees generated by Ameba Pigg increased, and as a result, net sales totaled 18,841 million yen (up 58.0% from the same period of the previous year), and we recorded an operating income of 4,931 million yen (up 30.9% from the same period of the previous year).

(b) Media business

The media business includes CA Mobile, LTD. and social game businesses in our Group companies such as Cygames Inc., Grenge, Inc., Applibot, Inc., CyberX Co., Ltd., and Sumzap, Inc.

In the current business year, due to factors such as steady expansion of our social games business, net sales totaled 32,962 million yen (up 27.5% from the same period of the previous year), and we recorded an operating income of 4,356 million yen (up 130.7% from the same period of the previous year).

(c) Comprehensive Internet business

From the current business year, the organization is divided into Agency Unit, which engages in advertising agency businesses, and Internet Business Unit, which launches new businesses for smartphones.

As for this business, we concentrated on the launch of new businesses by reshuffling personnel, recruiting more engineers, etc. As a result, net sales totaled 50,919 million yen (up 0.4% from the same period of the previous year), and we recorded an operating income of 2,428 million yen (down 21.2% from the same period of the previous year).

(d) FX business

The FX business includes foreign exchange margin trading in CyberAgent FX, Inc. In the current business year, the number of account openings and deposit accounts increased steadily. As a result, net sales totaled 5,870 million yen (up 6.9% from the same period of the previous year), and we recorded an operating income of 2,956 million yen (up 35.8% from the same period of the previous year).

(e) Investment development business

Our investment development business includes the Company's corporate venture capital business, and fund operation in CyberAgent Ventures, Inc. It discovers, develops and generates value for promising venture companies both within Japan and in Asian countries.

In the current business year, due mainly to sales of shares, net sales totaled 302 million yen (up 48.3% from the same period of the previous year), and we recorded an operating loss of 115 million yen (an operating loss of 77 million yen for the same period of the previous year).

3) Progress toward the full year forecast

Consolidated Forecast for the Fiscal Year Ending September 30, 2012
(Oct 1, 2011 to Sept 30, 2012)                      (millions of yen)
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                             Forecast        Actual       Progress
                            Sept 2012     June 2012              %
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Net Sales                     130,000       101,902          78.4%
Operating Income               17,000        14,557          85.6%
Ordinary Income                16,700        14,407          86.3%
Net Income                      8,500         6,912          81.3%
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4) Segment Information

Current consolidated third quarter (Oct. 1, 2011 to June 30, 2012)
                                                         (millions of yen)
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               A       B       C       D       E       F       G        H
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Net Sales
(1)Sales to external customers
          14,514  32,172  49,055   5,870     289 101,902      --  101,902
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(2)Intersegment internal sales of transferred amount
           4,327     789   1,863      --      13   6,994  (6,994)      --
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Total     18,841  32,962  50,919   5,870     302 108,896  (6,994) 101,902   
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Segment income (loss)
           4,931   4,356   2,428   2,956   (115)  14,557      --   14,557
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A. Ameba business
B. Media business
C. Comprehensive Internet business
D. FX
E. Investment development business
F. Subtotal
G. Adjustment Amount
H. Consolidated quarterly balance sheet amount 

About CyberAgent, Inc.

CyberAgent, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment for PCs, handheld and wireless devices. Founded in 1998, the company has provided many kinds of businesses in Japan including being the largest social game provider, running the #1 blog based communication service (Ameba), the #1 internet, and the #1 corporate venture capital. CyberAgent maintains operations in the U.S., China, Vietnam, Japan with corporate headquarters located in Tokyo, Japan. For additional information on the company and its offerings, please visit www.cyberagent.info or contact pub@cyberagent.co.jp .

Contact:

CyberAgent 
PR/IR Division
Akiko Kashiwa
Tel: +81-3-5459-0227

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