On the 14th, Cyanogen announced its consolidated financial results for the year ending June 2024. Sales decreased by 28.6% YoY to ¥1.739 billion, operating profit increased by 30.9% to ¥0.498 billion, ordinary profit increased by 28.8% to ¥0.484 billion, and net income attributable to parent company shareholders increased by 19.9% to ¥0.312 billion.
The company group, aiming to be No. 1 in the digital marketing market, sold its retargeting advertising business handled by its consolidated subsidiary Dekwas on July 1, 2023 and shifted its focus to the development and sales of CX improvement services "ZETA CX series", which is also handled by its consolidated subsidiary ZETA. Mainly focusing on high-end EC businesses, the acquisition of new clients as well as cross-selling and upselling to existing clients have been developing smoothly. In addition, as the synergy effect between products of the ZETA CX series continues to increase, the revenue of the ZETA CX series is also continuing to improve. The domestic EC market continues to grow at a double-digit rate, which also provided a tailwind for growth in such target markets. The decrease in sales is due to the impact of the sale of the retargeting advertising business. The transformation of the business structure has been progressing smoothly, also due to the improvement in profit and profit margin.
The consolidated performance forecast for the full year ending December 2024 is expected to be ¥0.8 billion in sales, ¥0.045 billion in operating profit, ¥0.045 billion in ordinary profit, and ¥0.03 billion in net income attributable to parent company shareholders. Due to the change of accounting period for the fiscal year ending December 2024, Cyanogen and its consolidated subsidiary Dekwas will have a 6-month settlement period from July 1, 2024 to December 31, 2024, while its consolidated subsidiary ZETA will have a 7-month settlement period from June 1, 2024 to December 31, 2024. Therefore, the year-on-year growth rate for the full year is not stated.
