CyberAgent subsidiary CyberOwl faces accounting scandal, amended reports expected

CyberAgent [TSE:4751] today announced the receipt of an investigative report detailing improper accounting practices at its consolidated subsidiary, CyberOwl. The investigation, launched following the discovery of inappropriate revenue recognition related to affiliate advertising, uncovered that a CyberOwl executive had falsified data over several years. As a result, CyberAgent anticipates filing amended securities reports and internal control reports for prior fiscal years. The estimated impact on CyberOwl's individual financial statements includes a reduction in sales of JPY 40 million for FY2020, JPY 311 million for FY2021, JPY 763 million for FY2022, JPY 855 million for FY2023, and JPY 1,759 million for FY2024. CyberAgent will revise accounting methods, strengthen internal audits, and ensure checks and balances within its subsidiary management structure to prevent recurrence. Affected executive has been dismissed.