CyberAgent’s Q3 operating profit falls 44.2% Q-over-Q to $43.5M on kompu gacha ban

Japanese media company CyberAgent has reported its third quarter sales rose 15.9 percent year-on-year to 33.7 billion yen ($431.2 million) but the affects of Japan’s recent ban on the kompu gacha sales tactic was very clear. The company’s third quarter operating profit was 3.4 billion yen ($43.5 million), an increase of 8.3 percent year-on-year, but down 44.2 percent from Q2’s record operating profit of 6.1 billion yen ($78 million).

Overall, CyberAgent’s sales were down 6.1 percent in Q3, dropping from their record Q2 highs of 35.9 billion yen ($459.3 million). The company’s operating margin dropped from 17.1 percent in Q2 to 10.3 percent in Q3. As industry watcher Serkan Toto notes, the company missed estimates for the quarter. The company’s shares are currently trading at 152,900 yen ($1,956) — down more than 32 percent.

CyberAgent blamed its profit decline on the banning of the kompu gacha sales tactic — a practice that encouraged players to purchase randomized virtual goods in hopes of collecting enough for a rare “grand-prize” item — new age restrictions around its Ameba Pigg service and additional investment in its smartphone business. The company is predicting its Q4 sales will be 20 percent lower due to the kompu gacha ban.

The news for the company was not all bad though, CyberAgent’s Mobage game Rage of Bahamut has been a big success, hitting the No. 1 spot on the top grossing iOS and Android charts.

 

 

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