LINE Corporation Announces and Unconsolidated Consolidated Earnings Results for the Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter Ending March 31, 2017
For the year, on unconsolidated basis, the company reported that its revenues were ¥107,032.422 million compared with ¥88,441.794 million a year ago. Operating income was ¥8,661.509 million compared with ¥3,695.263 million a year ago. Ordinary income was ¥9,806.178 million compared with ¥3,472.727 million a year ago. Net profit for the year was ¥3,301.643 million or ¥17.01 per diluted share compared with loss of ¥16,740.537 million or ¥95.66 per diluted share a year ago. The company recorded a profit for the year mainly due to a decrease in the amount of loss on valuation of stocks of subsidiaries and affiliates, which they had recorded as extraordinary loss in fiscal year 2015, and recognition of pre-tax gain on sale of land as extraordinary income in fiscal year 2016.
The group's revenues for the first quarter ending March 31, 2017 are expected to be higher compared to the corresponding period of 2016 driven by the steady growth of advertising. In LINE advertising, revenues from performance ads such as Timeline Ads and LINE News Ads following the enhancement of the LINE advertising platform, as well as the growth of messenger ads are expected to contribute to revenue growth. In the first quarter of fiscal 2017, although increased operating expenses are expected following the expansion of services and recruitment activities, the group expects to continue the positive operating income trend.