Yahoo Finance 5 Things About Messaging App Line and Its IPO
Line Corp., which operates Japan’s most popular messaging application, plans a dual listing in Tokyo and New York next month in what is expected to be the biggest IPO in Japan this year. Here are five things to know about Line.
#1: It’s the Dominant Messaging App in Japan
Line’s messaging function is its main attraction. Those below 40 account for 64% of Line’s users, and among younger Japanese it is the dominant means of communicating with friends. In addition to Japan, Line has a strong presence in Taiwan, Thailand and Indonesia, with the four markets accounting for more than half of Line’s 218 million monthly active users.
#2: Stamp Emoticons Differentiate It From Competitors
Line’s cutesy cartoon emoticons helped propel the service into mass popularity and helped differentiate the service from competitors such as Facebook Messenger, although the idea has now been copied. Besides original stamps that Line produced, such as Cony the rabbit and Brown the bear, users can download stamps featuring manga characters for a fee.
#3: It’s Trying to Expand Into More Services
Line is hoping to turn its app into a one-stop portal for many services, similar to Tencent Holdings Ltd.’s WeChat app, which dominates the Chinese market. Line has expanded into games, video, music streaming and taxi hailing. It also offers mobile payment via the app and recently said that it would start a low-cost mobile carrier.
#4: Ads and Games Fuel Revenue
In its most recent earnings release for the January-to-March quarter, Line said advertisements accounted for 35% of its sales, while games and other content accounted for a further 35%. The stamp business accounted for 22%.
#5: With IPO, It Hopes to Strengthen Asia Presence
Line has yet to make significant inroads in the U.S. and Europe. Line Chief Executive Takeshi Idezawa said during an interview in March that the company planned to concentrate efforts in Asia and other markets where it can aspire to No. 1 status. The funds raised from the IPO are earmarked for such plans.
