SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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LINE Corporation
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(Registrant)
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October 25, 2017
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By: /s/ In Joon Hwang
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(Signature)
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Name: In Joon Hwang
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Title: Director and Chief Financial Officer
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LINE
Corporation Announces Summary of Consolidated Financial Results for the
Nine Months Ended September 30, 2017
Prepared
in Accordance with the International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board
(“IASB”)
TOKYO--(BUSINESS WIRE)--October 25, 2017--LINE Corporation (NYSE:LN)
(TOKYO:3938) announces the summary of its consolidated financial results
for the nine months ended September 30, 2017.
This is an English translation of the original Japanese-language
document. Should there be any inconsistency between the translation and
the original Japanese text, the latter shall prevail. All references to
the “Company,” “we,” “us” or “our” shall mean LINE Corporation and,
unless the context otherwise requires, its consolidated subsidiaries.
Company name:
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LINE Corporation
(Stock Code: 3938) (the “Company”)
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Stock exchange on which the shares are listed:
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Tokyo Stock Exchange
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URL:
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http://linecorp.com/
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Representative:
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Takeshi Idezawa, Chief Executive Officer
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Contact:
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Kokan Ki, Executive Officer and Head of Finance and Accounting
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Telephone:
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+81-3-4316-2050
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Filing date of quarterly securities report: November 14, 2017
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Payment date of dividends: –
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Supplemental materials prepared on quarterly financial results: Yes
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Financial results conference scheduled: Yes (for institutional
investors and analysts)
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(Yen amounts are rounded to the nearest million, unless otherwise
noted.)
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1.
Consolidated financial results for the first nine
months of 2017 (from January 1, 2017 to September 30, 2017)
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(1) Consolidated operating results (cumulative)
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(Percentages indicate year-on-year changes.)
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Revenues
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Profit from operating
activities
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Profit before income
taxes
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Profit for the period
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For the nine months ended
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Millions of yen
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%
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Millions of yen
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%
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Millions of yen
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%
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Millions of yen
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%
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September 30, 2017
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121,233
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17.4
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24,479
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33.8
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21,198
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38.9
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12,184
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114.3
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September 30, 2016
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103,239
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17.2
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18,294
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–
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15,266
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–
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5,684
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–
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Profit attributable to the
shareholders of the
Company
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Comprehensive income
for the period
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Basic earnings
per share
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Diluted earnings
per share
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For the nine months ended
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Millions of yen
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%
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Millions of yen
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%
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Yen
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Yen
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September 30, 2017
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12,074
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127.2
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13,334
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207.9
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55.09
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50.90
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September 30, 2016
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5,315
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–
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4,331
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–
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28.54
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25.68
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(2)
Consolidated financial position
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Total assets
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Total equity
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Equity attributable
to the shareholders
of the Company
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Ratio of equity
attributable to the
shareholders of the
Company
to total
assets
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As of
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Millions of yen
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Millions of yen
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Millions of yen
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%
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September 30, 2017
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283,412
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181,241
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177,277
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62.6
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December 31, 2016
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256,089
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161,023
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160,834
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62.8
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2.
Cash dividends
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Annual dividends per share
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First quarter-end
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Second quarter-end
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Third quarter-end
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Fiscal year-end
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Total
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Yen
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Yen
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Yen
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Yen
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Yen
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For the year ended
December 31, 2016
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–
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0.00
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–
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0.00
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0.00
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For the year ending
December 31, 2017
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–
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0.00
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–
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For the year ending
December 31, 2017
(Forecast)
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-
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-
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Note:
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Revisions to the cash dividends forecasts most recently announced:
None
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Concerning cash dividends forecasts for the year ending December 31,
2017, while the Company has decided not to pay an interim dividend,
it has not yet made a decision regarding the year-end dividend.
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3.
Consolidated earnings forecasts for 2017 (from January 1,
2017 to December 31, 2017)
Amid rapid international and domestic changes, there is a level of
uncertainty within the mobile applications market for smartphones and
other mobile devices, the main business of the Company and its
subsidiaries (collectively, the “Group”). As the state of this market
significantly impacts the Group’s financial results, it is difficult to
formulate a precise earnings forecast. Furthermore, as the Company’s
shares are listed on the New York Stock Exchange as well as the Tokyo
Stock Exchange, we are also carefully considering risks relating to U.S.
securities regulations. Accordingly, an announcement concerning earnings
forecasts is not made at this time.
Notes
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(1)
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Changes in significant subsidiaries during the current period
(changes in specified subsidiaries resulting in change in scope of
consolidation): None
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(2)
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Changes in accounting policies and estimates
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a.
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Changes in accounting policies due to revisions in accounting
standards under IFRS: None
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b.
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Changes in accounting policies due to other reasons: None
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c.
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Changes in accounting estimates: None
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(3)
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Number of shares issued and outstanding (common stock)
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a.
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Total number of common shares issued and outstanding at the end of
the period (including treasury shares)
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As of September 30, 2017
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221,658,310
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shares
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As of December 31, 2016
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217,775,500
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shares
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b.
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Number of treasury shares at the end of the period
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As of September 30, 2017
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1,007,810
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shares
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As of December 31, 2016
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–
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shares
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c.
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Average number of common shares outstanding during the period
(cumulative from the beginning of the fiscal year)
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For the nine months ended September 30, 2017
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219,178,184
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shares
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For the nine months ended September 30, 2016
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128,353,333
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shares
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Note:
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As of December 31, 2015, the Company had issued 174,992,000 class A
shares. However, through an amendment to its articles of
incorporation effective as of March 31, 2016, the Company terminated
its dual class structure and converted all class A shares into
common shares. The average number of class A shares outstanding
during the nine-month period ended September 30, 2016 was
57,906,443. The combined average number of common shares and class A
shares outstanding for the nine-month period ended September 30,
2016 was 186,259,776.
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* Information regarding the quarterly review procedures
This summary quarterly financial results report is exempt from the
quarterly consolidated financial statements review procedures in
accordance with the Financial Instruments and Exchange Act.
* Cautionary statement with respect to forward-looking statements,
and other information
This document contains forward-looking statements with respect to the
current plans, estimates, strategies and beliefs of the Company.
Forward-looking statements include, but are not limited to, those
statements using words such as “anticipate,” “believe,” “continues,”
“expect,” “estimate,” “intend,” “project” and similar expressions and
future or conditional verbs such as “will,” “would,” “should,” “could,”
“might,” “can,” “may,” or similar expressions generally intended to
identify forward-looking statements. These forward-looking statements
are based on information currently available to the Company, speak only
as of the date hereof and are based on the Company’s current plans and
expectations and are subject to a number of known and unknown
uncertainties and risks, many of which are beyond the Company’s control.
As a consequence, current plans, anticipated actions and future
financial position and results of operations may differ significantly
from those expressed in any forward-looking statements in the document.
You are cautioned not to unduly rely on such forward-looking statements
when evaluating the information presented and the Company does not
intend to update any of these forward-looking statements. Risks and
uncertainties that might affect the Company include, but are not limited
to:
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i.
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its ability to attract and retain users and increase the level of
engagement of its users;
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ii.
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its ability to improve user monetization;
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iii.
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its ability to successfully enter new markets and manage its
business expansion;
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iv.
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its ability to compete in the global social network services market;
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v.
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its ability to develop or acquire new products and services, improve
its existing products and services and increase the value of its
products and services in a timely and cost-effective manner;
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vi.
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its ability to maintain good relationships with platform partners
and attract new platform partners;
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vii.
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its ability to attract advertisers to the LINE platform and increase
the amount that advertisers spend with LINE;
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viii.
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its expectations regarding its user growth rate and the usage of its
mobile applications;
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ix.
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its ability to increase revenues and its revenue growth rate;
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x.
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its ability to timely and effectively scale and adapt its existing
technology and network infrastructure;
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xi.
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its ability to successfully acquire and integrate companies and
assets;
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xii.
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its future business development, results of operations and financial
condition;
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xiii.
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the regulatory environment in which it operates;
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xiv.
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fluctuations in currency exchange rates and changes in the
proportion of its revenues and expenses denominated in foreign
currencies; and
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xv.
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changes in business or macroeconomic conditions.
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Index
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1.
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Qualitative information regarding financial results for the nine
months ended September 30, 2017
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(1)
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Operating results
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(2)
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Financial position
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(3)
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Forecast of consolidated financial results
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2.
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Interim condensed consolidated financial statements
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(1)
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Interim condensed consolidated statement of financial position -
unaudited
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(2)
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Interim condensed consolidated statement of profit or loss -
unaudited
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(3)
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Interim condensed consolidated statement of comprehensive income -
unaudited
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(4)
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Interim condensed consolidated statement of change in equity -
unaudited
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(5)
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Notes to interim condensed consolidated financial statements -
unaudited
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Notes for going concern assumption
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1.
Qualitative information regarding financial results for the
nine months ended September 30, 2017
(1)
Operating results
In the first nine months of 2017 (from January 1, 2017 to September 30,
2017), there was ongoing uncertainty in the global economy overall,
including with respect to foreign exchange trends, primarily as a result
of concern over the new U.S. administration’s protectionist economic
policies and increased geopolitical risks in the Middle East and North
Korea. At the same time, emerging economies in Asia, particularly the
Chinese economy, began to show signs of respite from economic slowdown.
Thailand, one of the Company’s key countries, enjoyed brisk exports
despite appreciation of the baht, and achieved a year-on-year increase
in GDP growth rates, while Taiwan increased its exports at a growth rate
exceeding 10% for the first six months of 2017 compared with the same
period of the previous year and maintained positive GDP growth rates for
five consecutive years.
Meanwhile, in the Japanese economy, there were signs of recovery in
exports in industries such as the IT industry, firm improvement in
employment rates and personal income levels, while personal spending
showed moderate improvement.
Amid such circumstances, in the internet industry in which the Group is
engaged, the total number of mobile phone shipments in Japan for the
fiscal year ended December 31, 2016 was 36.06 million, a decrease of
3.0% year on year. The ratio of smartphones to the total number of
mobile phone shipments in Japan was 81.6%, an increase of 3.6 percentage
points year on year. Although the overall number of mobile phone
shipments has hit a ceiling, there was an increase in users switching
from feature phones to smartphones and an increase in the number of
SIM-free smartphones. Current estimates suggest that the number of
smartphone contracts in Japan will exceed 100 million by year 2018, and
the mobile internet market is expected to continue to grow on the back
of this expansion. (Source: MM Research Institute, Japan mobile phone
handset shipment estimates for year 2016 and Overview of domestic mobile
phone shipments for FY 2016).
In this business environment, the Group actively moved forward with the
LINE business and portal segment. As of September 30, 2017, MAUs* in our
four key countries (Japan, Taiwan, Thailand and Indonesia) reached 168
million, a year-on-year increase of 4.1%.
* Monthly Active Users (“MAUs”) in a given month refers to the number of
user accounts that (i) accessed the LINE messaging application or any
LINE Games through mobile devices; (ii) sent messages through the LINE
messaging application from personal computers; or (iii) sent messages
through any other LINE application from mobile devices, in each case at
least once during that month.
Revenues
The Group’s revenues from continuing operations from its major services
in the first nine months of 2016 and 2017 are as follows:
(In millions of yen)
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For the nine-month period
ended September 30,
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2016
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2017
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LINE business and portal segment
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Communication and content
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Communication
(1)
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22,317
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23,141
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Content
(2)
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34,025
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30,400
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Others
(3)
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7,921
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13,217
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Sub-total
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64,263
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66,758
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Advertising
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LINE advertising
(4)
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31,423
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46,634
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Portal advertising
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7,553
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7,841
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Sub-total
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38,976
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54,475
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Total
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103,239
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121,233
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(1)
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Revenues from communication increased mainly due to the steady
growth of Creators’ Themes released in April 2016, as well as a
shortening of the time taken for stickers to pass the review process
and enhancement of products by popular creators for Creators’
stickers.
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(2)
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Revenues from content decreased mainly due to a decrease in revenues
generated by the LINE Games business as a result of fewer new title
releases, although we are steadily promoting existing services such
as LINE Manga, LINE Fortune and LINE MUSIC.
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(3)
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Revenues from others increased mainly due to the expansion of LINE
Friends service primarily overseas as well as the launch of LINE
Mobile in September 2016.
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(4)
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Revenues from LINE advertising increased mainly due to the continued
growth of existing “messenger ads” such as Official Accounts as well
as a significant increase in revenues generated by “performance ads”
on Timeline and LINE NEWS provided by the LINE Ads Platform released
in June 2016.
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Profit from operating activities
Profit from operating activities consists of revenues and other
operating income reduced by operating expenses. In the first nine months
of 2017, other operating income included 10,444 million yen in gain on
transfer of business resulting from restructuring of the camera
application business. With respect to operating expenses, there was an
increase in employee compensation expenses due to headcount growth in
accordance with business expansion, an increase in marketing expenses
due mainly to the active running of TV commercials for LINE Mobile, an
increase in authentication and other service expenses due mainly to
additional network costs for LINE Mobile accompanying arising number of
users, an increase in depreciation expenses of furniture and fixtures
which were newly purchased due to the relocation of the headquarter
offices, and an increase in other operating expenses due to an increase
in rent payments for the new headquarter offices, which were partially
offset by a decrease in the share-based payment expenses. Accordingly,
the Group recorded operating expenses of 108,269 million yen, a
year-on-year increase of 20.1%.
As a result, for the first nine months of 2017, the Group recorded
profit from operating activities of 24,479 million yen, a year-on-year
increase of 33.8%.
Profit for the period from continuing operations
The Group recorded profit before tax for the period from continuing
operations of 21,198 million yen in the first nine months of 2017, a
38.9% increase year on year, due in part to an increase in profit from
operating activities, a decrease in loss on foreign currency
transactions, net, an increase in other non-operating income and a
decrease in other non-operating expenses due to the revaluation of
conversion right and redemption right of preferred stock which were
offset in part by an increase in share of loss of associates and joint
ventures mainly related to the Group’s interest in Snow Corporation.
Income tax expense increased by 15.1% to 9,003 million yen for the first
nine months of 2017 compared to the first nine months of 2016. On an
after-tax basis, profit for the period from continuing operations was
12,195 million yen in the first nine months of 2017, an increase of
63.8% year on year. The effective tax rate for the nine-month period
ended September 30, 2017 of 42.5% differed from the Japanese statutory
tax rate of 31.7% for the year ending December 31, 2017. The effective
income tax rate of 42.5% was primarily due to pre-tax losses recorded by
subsidiaries on a standalone basis and pre-tax losses recorded by
associates for which no deferred tax assets were recognized as the
related tax benefits could not be recognized and due to recognition of
share of loss on associates and joint ventures.
Profit for the period
Loss for the period from discontinued operations, which relate to the
MixRadio business, for the first nine months of 2017 decreased from the
corresponding period in 2016. Therefore, after subtracting the loss for
the period from discontinued operations, profit for the period was
12,184 million yen in the first nine months of 2017, an increase of
114.3% year on year. Profit for the period attributable to the
shareholders of the Company was 12,074 million yen in the first nine
months of 2017, an increase of 127.2% year on year.
(2)
Financial position
Regarding the financial position of the Group as of September 30, 2017,
total assets of the Group increased by 27,323 million yen compared to
the end of the previous fiscal year to 283,412 million yen. The main
factors of increase were a 9,794 million yen increase in investments in
associates and joint ventures mainly due to the acquisition of
additional shares of Snow Corporation, an associate of the Group, in
exchange for the camera application business, a 7,939 million yen
increase in trade and other receivables due to increase in revenue, a
5,937 million yen increase in goodwill resulting from acquisition of
subsidiaries, a 5,126 million yen increase in other financial assets,
non-current, mainly due to the acquisition of debt instruments and the
acquisition and revaluation of available-for-sale financial assets, and
a 4,646 million yen increase in property and equipment, which related
mainly to the relocation of the headquarter offices, while the main
factor of decrease was a 10,717 million yen decrease in cash and cash
equivalents.
Total liabilities increased by 7,105 million yen to 102,171 million yen
as of September 30, 2017. The main factors of increase were a 3,811
million yen increase in advances received mainly due to an increase in
unused LINE Points, a 2,772 million yen increase in other financial
liabilities, current, mainly due to an increase in the balance of
charges payable in the LINE Pay service, a 2,069 million yen increase in
trade and other payables due to increased costs associated with
increased revenues, and a 1,800 million yen increase in provisions,
non-current, caused by an increase in provision for asset retirement
associated with the relocation of the headquarter offices, while the
main factor of decrease was a 2,860 million yen decrease in income taxes
payables due to tax payments.
Total shareholders’ equity increased by 20,218 million yen to 181,241
million yen as of September 30, 2017. The main factors of increases were
recognition of 12,074 million yen of profit for the period attributable
to the shareholders of the Company, a 4,516 million yen increase in
share capital and a 2,705 million yen increase in share premium mainly
due to exercise of stock options, recognition of share-based
compensation expenses and issuance of common shares due to the
introduction of the Employee Stock Ownership Plan, and a 3,775 million
yen increase in non-controlling interests mainly due to acquisition of
subsidiaries. Such increases were offset in part by the acquisition of
4,000 million yen worth of treasury shares following the introduction of
the Employee Stock Ownership Plan.
(3)
Forecast of consolidated financial results
Forecasts for the next quarter
The Group’s revenues for the current fiscal year (January 1, 2017 to
December 31, 2017) are expected to be higher compared to the fiscal year
ended December 31, 2016. Specifically, in LINE advertising, growth in
revenues is expected primarily due to Official Accounts and the
contribution from the revenues of performance ads following the launch
of ads on LINE family service
such as LINE Manga
.
With
respect to content distribution, the Group expects to continue to
generate steady revenues, mainly because the Group plans to
appropriately update existing titles and implement marketing. In
communication, the Group also expects to continue to generate steady
revenues primarily as a result of executing measures designed to match
with the seasons and events.
In the current fiscal year (January 1, 2017 to December 31, 2017),
although operating expenses are expected to increase following the
expansion of services and marketing activities, full-scale investments
in cloud AI “Clova” and share-based compensation expenses, the Group
expects to continue to achieve positive profit from operating activities.
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2.
Interim Condensed Consolidated Financial Statements
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(1) Interim Condensed Consolidated Statement of Financial Position
- Unaudited
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(In millions of yen)
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December 31,
2016
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September 30,
2017
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Assets
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Current assets
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Cash and cash equivalents
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134,698
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123,981
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Trade and other receivables
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28,167
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36,106
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Other financial assets, current
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6,952
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5,470
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Inventories
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961
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2,915
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Other current assets
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3,929
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7,237
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Total current assets
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174,707
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175,709
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Non-current assets
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Property and equipment
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9,029
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13,675
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Goodwill
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3,400
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9,337
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Other intangible assets
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1,851
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4,280
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Investments in associates and joint ventures
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12,712
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22,506
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Other financial assets, non-current
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35,715
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40,841
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Deferred tax assets
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18,385
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16,634
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Other non-current assets
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290
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430
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Total non-current assets
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81,382
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107,703
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Total assets
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256,089
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283,412
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(In millions of yen)
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December 31,
2016
|
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September 30,
2017
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Liabilities
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Current liabilities
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Trade and other payables
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21,532
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23,601
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Other financial liabilities, current
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24,497
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27,269
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Accrued expenses
|
|
|
9,049
|
|
|
9,943
|
|
Income tax payables
|
|
|
5,699
|
|
|
2,839
|
|
Advances received
|
|
|
11,286
|
|
|
15,097
|
|
Deferred revenue
|
|
|
9,739
|
|
|
9,190
|
|
Provisions, current
|
|
|
964
|
|
|
581
|
|
Other current liabilities
|
|
|
3,670
|
|
|
1,537
|
|
Total current liabilities
|
|
|
86,436
|
|
|
90,057
|
|
Non-current liabilities
|
|
|
|
|
|
Other financial liabilities, non-current
|
|
|
-
|
|
|
174
|
|
Deferred tax liabilities
|
|
|
1,161
|
|
|
1,784
|
|
Provisions, non-current
|
|
|
1,120
|
|
|
2,920
|
|
Post-employment benefits
|
|
|
6,204
|
|
|
7,029
|
|
Other non-current liabilities
|
|
|
145
|
|
|
207
|
|
Total non-current liabilities
|
|
|
8,630
|
|
|
12,114
|
|
Total liabilities
|
|
|
95,066
|
|
|
102,171
|
|
Shareholders’ equity
|
|
|
|
|
|
Share capital
|
|
|
77,856
|
|
|
82,372
|
|
Share premium
|
|
|
91,208
|
|
|
93,913
|
|
Treasury shares
|
|
|
-
|
|
|
(4,000
|
)
|
Accumulated deficit
|
|
|
(12,381
|
)
|
|
(299
|
)
|
Accumulated other comprehensive income
|
|
|
4,151
|
|
|
5,291
|
|
Equity attributable to the shareholders of the Company
|
|
|
160,834
|
|
|
177,277
|
|
Non-controlling interests
|
|
|
189
|
|
|
3,964
|
|
Total shareholders’ equity
|
|
|
161,023
|
|
|
181,241
|
|
Total liabilities and shareholders’ equity
|
|
|
256,089
|
|
|
283,412
|
|
|
|
(2) Interim Condensed Consolidated Statement of Profit or Loss -
Unaudited
|
|
|
|
|
|
|
|
|
|
(In millions of yen)
|
|
|
|
For the nine-month period
ended September 30,
|
|
|
|
2016
|
|
2017
|
Revenues and other operating income:
|
|
|
|
|
|
Revenues
|
|
|
103,239
|
|
|
121,233
|
|
Other operating income
|
|
|
5,212
|
|
|
11,515
|
|
Total revenues and other operating income
|
|
|
108,451
|
|
|
132,748
|
|
Operating expenses:
|
|
|
|
|
|
Payment processing and licensing expenses
|
|
|
(22,435
|
)
|
|
(22,320
|
)
|
Employee compensation expenses
|
|
|
(28,889
|
)
|
|
(30,064
|
)
|
Marketing expenses
|
|
|
(7,552
|
)
|
|
(10,396
|
)
|
Infrastructure and communication expenses
|
|
|
(5,657
|
)
|
|
(6,610
|
)
|
Authentication and other service expenses
|
|
|
(9,720
|
)
|
|
(17,221
|
)
|
Depreciation and amortization expenses
|
|
|
(3,659
|
)
|
|
(4,887
|
)
|
Other operating expenses
|
|
|
(12,245
|
)
|
|
(16,771
|
)
|
Total operating expenses
|
|
|
(90,157
|
)
|
|
(108,269
|
)
|
Profit from operating activities
|
|
|
18,294
|
|
|
24,479
|
|
Finance income
|
|
|
55
|
|
|
136
|
|
Finance costs
|
|
|
(58
|
)
|
|
(18
|
)
|
Share of loss of associates and joint ventures
|
|
|
(326
|
)
|
|
(4,308
|
)
|
Loss on foreign currency transactions, net
|
|
|
(1,646
|
)
|
|
(295
|
)
|
Other non-operating income
|
|
|
4
|
|
|
1,268
|
|
Other non-operating expenses
|
|
|
(1,057
|
)
|
|
(64
|
)
|
Profit before tax from continuing operations
|
|
|
15,266
|
|
|
21,198
|
|
Income tax expenses
|
|
|
(7,819
|
)
|
|
(9,003
|
)
|
Profit for the period from continuing operations
|
|
|
7,447
|
|
|
12,195
|
|
Loss from discontinued operations, net of tax
|
|
|
(1,763
|
)
|
|
(11
|
)
|
Profit for the period
|
|
|
5,684
|
|
|
12,184
|
|
Attributable to:
|
|
|
|
|
|
The shareholders of the Company
|
|
|
5,315
|
|
|
12,074
|
|
Non-controlling interests
|
|
|
369
|
|
|
110
|
|
|
|
(In yen)
|
Earnings per share
|
|
|
|
|
|
Basic profit for the period attributable to the shareholders of the
Company
|
|
|
28.54
|
|
55.09
|
Diluted profit for the period attributable to the shareholders of
the Company
|
|
|
25.68
|
|
50.90
|
Earnings per share from continuing operations
|
|
|
|
|
|
Basic profit from continuing operations attributable to the
shareholders of the Company
|
|
|
38.00
|
|
55.14
|
Diluted profit from continuing operations attributable to the
shareholders of the Company
|
|
|
34.20
|
|
50.95
|
Earnings per share from discontinued operations
|
|
|
|
|
|
Basic loss from discontinued operations attributable to the
shareholders of the Company
|
|
|
(9.46)
|
|
(0.05)
|
Diluted loss from discontinued operations attributable to the
shareholders of the Company
|
|
|
(8.52)
|
|
(0.05)
|
|
|
(3) Interim Condensed Consolidated Statement of Comprehensive
Income - Unaudited
|
|
|
|
|
|
|
|
(In millions of yen)
|
|
|
For the nine-month period
ended September 30,
|
|
|
2016
|
|
2017
|
Profit for the period
|
|
5,684
|
|
|
12,184
|
|
Other comprehensive income
|
|
|
|
|
Items that may be reclassified to profit or loss:
|
|
|
|
|
Available-for-sale financial assets:
|
|
|
|
|
Net changes in fair value
|
|
(729
|
)
|
|
1,958
|
|
Reclassification to profit or loss
|
|
276
|
|
|
(664
|
)
|
Exchange differences on translation of foreign operations:
|
|
|
|
|
(Loss)/gain arising during the period
|
|
(929
|
)
|
|
213
|
|
Reclassification to profit or loss
|
|
50
|
|
|
(13
|
)
|
Proportionate share of other comprehensive income of associates and
joint ventures
|
|
(16
|
)
|
|
4
|
|
Income tax relating to items that may be reclassified subsequently
to profit or loss
|
|
(5
|
)
|
|
(348
|
)
|
Total other comprehensive income for the period, net of tax
|
|
(1,353
|
)
|
|
1,150
|
|
Total comprehensive income for the period, net of tax
|
|
4,331
|
|
|
13,334
|
|
Attributable to:
|
|
|
|
|
The shareholders of the Company
|
|
3,925
|
|
|
13,212
|
|
Non-controlling interests
|
|
406
|
|
|
122
|
|
|
|
(4) Interim Condensed Consolidated Statement of Change in Equity -
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of yen)
|
|
|
Equity attributable to the shareholders of the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
Share
capital
|
|
Share
premium
|
|
Accumulated
deficit
|
|
Foreign
currency
translation
reserve
|
|
Available-for-
sale reserve
|
|
Defined
benefit plan
reserve
|
|
Total
|
|
Non-
controlling
interests
|
|
Total
shareholders’
equity
|
Balance at January 1, 2016
|
|
12,596
|
|
18,983
|
|
|
(19,204
|
)
|
|
240
|
|
|
6,917
|
|
|
(1,789
|
)
|
|
17,743
|
|
|
(210
|
)
|
|
17,533
|
|
Comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
-
|
|
-
|
|
|
5,315
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,315
|
|
|
369
|
|
|
5,684
|
|
Other comprehensive income
|
|
-
|
|
-
|
|
|
-
|
|
|
(1,168
|
)
|
|
(222
|
)
|
|
-
|
|
|
(1,390
|
)
|
|
37
|
|
|
(1,353
|
)
|
Total comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income/(loss)for the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
period
|
|
-
|
|
-
|
|
|
5,315
|
|
|
(1,168
|
)
|
|
(222
|
)
|
|
-
|
|
|
3,925
|
|
|
406
|
|
|
4,331
|
|
Recognition of share-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
based payments
|
|
-
|
|
7,315
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7,315
|
|
|
-
|
|
|
7,315
|
|
Forfeiture of stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
option
|
|
-
|
|
(55
|
)
|
|
55
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Exercise of stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
options
|
|
1,296
|
|
(76
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,220
|
|
|
-
|
|
|
1,220
|
|
Acquisition of a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiary
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
93
|
|
|
93
|
|
Initial public offering
|
|
63,424
|
|
62,853
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
126,277
|
|
|
-
|
|
|
126,277
|
|
Other
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0
|
|
|
0
|
|
Balance at September 30, 2016
|
|
77,316
|
|
89,020
|
|
|
(13,834
|
)
|
|
(928
|
)
|
|
6,695
|
|
|
(1,789
|
)
|
|
156,480
|
|
|
289
|
|
|
156,769
|
|
|
|
(In millions of yen)
|
|
|
Equity attributable to the shareholders of the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
Share
capital
|
|
Share
premium
|
|
Treasury
shares
|
|
Accumulated
deficit
|
|
Foreign
currency
translation
reserve
|
|
Available-
for-
sale reserve
|
|
Defined
benefit plan
reserve
|
|
Total
|
|
Non-
controlling
interests
|
|
Total
shareholders’
equity
|
Balance at January 1, 2017
|
|
77,856
|
|
91,208
|
|
|
-
|
|
|
(12,381
|
)
|
|
(174
|
)
|
|
5,649
|
|
(1,324
|
)
|
|
160,834
|
|
|
189
|
|
161,023
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
period
|
|
-
|
|
-
|
|
|
-
|
|
|
12,074
|
|
|
-
|
|
|
-
|
|
-
|
|
|
12,074
|
|
|
110
|
|
12,184
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
189
|
|
|
949
|
|
-
|
|
|
1,138
|
|
|
12
|
|
1,150
|
|
Total comprehensive
income for the period
|
|
-
|
|
-
|
|
|
-
|
|
|
12,074
|
|
|
189
|
|
|
949
|
|
-
|
|
|
13,212
|
|
|
122
|
|
13,334
|
|
Recognition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
payments
|
|
-
|
|
1,273
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
1,273
|
|
|
-
|
|
1,273
|
|
Forfeiture of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
options
|
|
-
|
|
(8
|
)
|
|
-
|
|
|
8
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
Exercise of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
options
|
|
2,516
|
|
(498
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
2,018
|
|
|
-
|
|
2,018
|
|
Acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interests
|
|
-
|
|
(52
|
)
|
|
-
|
|
|
-
|
|
|
2
|
|
|
-
|
|
-
|
|
|
(50
|
)
|
|
15
|
|
(35
|
)
|
Acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
3,638
|
|
3,638
|
|
Issuance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
treasury shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
under Employee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan
|
|
2,000
|
|
1,990
|
|
|
(4,000
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
(10
|
)
|
|
-
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2017
|
|
82,372
|
|
93,913
|
|
|
(4,000
|
)
|
|
(299
|
)
|
|
17
|
|
|
6,598
|
|
(1,324
|
)
|
|
177,277
|
|
|
3,964
|
|
181,241
|
|
|
|
(5)
Notes to Interim Condensed Consolidated Financial
Statements - Unaudited
Notes for going concern assumption
Not applicable.
CONTACT:
LINE Global PR
Michiko Setsu, +81 3 4316 2104
dl_gpr@linecorp.co