Cyberbuzz slashes full-year earnings forecast amid SMM business woes

Cyberbuzz Co., Ltd. revised its full-year consolidated earnings forecast for the period from October 1, 2024, to September 30, 2025. The company now expects net sales of JPY 7,000 million, a decrease of JPY 1,310 million (15.8%) from the previous forecast of JPY 8,310 million. Operating profit is projected to fall by 44.0% to JPY 280 million, while ordinary profit is expected to decrease by 45.0% to JPY 275 million. Net profit attributable to owners of the parent is now anticipated to be JPY 235 million, representing a 21.7% reduction from the earlier forecast of JPY 300 million, with earnings per share revised to JPY 58.41.

The revision primarily stems from the underperformance of the SMM business, Cyberbuzz's core segment. While the live streaming platform business performed steadily, and other businesses were slightly below expectations, SMM sales are projected to significantly miss initial forecasts. This is attributed to a large-scale project reduction in influencer services compared to the previous period, and the postponement of several potential projects in SNS account operation and other services.

Despite the challenging environment, the company notes that increased demand from both existing and new customers, alongside cost reduction efforts and overall cost management, suggest that a turnaround to profitability is expected. Additionally, the forecast incorporates special profits from the sale of investment securities and related costs/gains from the transfer of receivables.