LINE Corporation (NYSE: LN) (TOKYO: 3938) announces the summary of its consolidated financial results for the three months ended March 31, 2018.

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:  

LINE Corporation (Stock Code: 3938) (the “Company”)

Stock exchange on which the shares are listed:

  Tokyo Stock Exchange
URL:

http://linecorp.com/

Representative: Takeshi Idezawa, Chief Executive Officer
Contact: Kokan Ki, Executive Officer and Head of Finance and Accounting
Telephone: +81-3-4316-2050
Filing date of quarterly securities report: May 10, 2018
Payment date of dividends: –
Supplemental materials prepared on quarterly financial results: Yes
Financial results conference scheduled: Yes (for institutional investors and analysts)
 

(Yen amounts are rounded to the nearest million, unless otherwise noted.)

1. Consolidated financial results for the first three months of 2018 (from January 1, 2018 to March 31, 2018)

 
(1) Consolidated operating results (cumulative)   (Percentages indicate year-on-year changes.)
    Revenues  

Profit from operating
activities

 

Profit before income
taxes

  Profit for the period

For the three months
ended

Millions of yen   % Millions of yen   % Millions of yen   % Millions of yen   %
March 31, 2018 48,736 25.2 1,246 (69.0 ) (138 ) – (1,770 ) –
March 31, 2017   38,916   16.3   4,025   (24.6 )   3,566     (13.9 )   1,632     –
 
   

Profit attributable to the
shareholders of the
Company

 

Comprehensive income
for the period

 

Basic earnings
per share

 

Diluted earnings
per share

For the three months
ended

Millions of yen   % Millions of yen   % Yen Yen
March 31, 2018 (1,383 ) – (4,431 ) – (5.82 ) (5.82 )
March 31, 2017   1,437     –   2,799     –   6.58     6.07  
 

(2) Consolidated financial position

    Total assets   Total equity  

Equity attributable
to the shareholders
of the Company

 

Ratio of equity
attributable to the
shareholders of the
Company to total
assets

As of Millions of yen Millions of yen Millions of yen %
March 31, 2018 297,935 185,165 181,095 60.8
December 31, 2017   303,439   189,977   185,075   61.0
 

2. Cash dividends

 
  Annual dividends per share
 

First quarter-end

  Second quarter-end   Third quarter-end   Fiscal year-end     Total  
Yen Yen Yen Yen   Yen
For the year ended
December 31, 2017 		– 0.00 – 0.00 0.00

For the year ending
December 31, 2018

–            

For the year ending
December 31, 2018
(Forecast)

      –   –   –     –  
Note:   Revisions to the cash dividends forecasts most recently announced: None
Concerning cash dividends forecasts for the year ending December 31, 2018, it has not yet made a decision.
 

3. Consolidated earnings forecasts for 2018 (from January 1, 2018 to December 31, 2018)

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

(1)   Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in change in scope of consolidation): None
 
(2) Changes in accounting policies and estimates
a. Changes in accounting policies due to revisions in accounting standards under IFRS: Yes
b. Changes in accounting policies due to other reasons: None
c. Changes in accounting estimates: None
 
(3) Number of shares issued and outstanding (common stock)
a. Total number of common shares issued and outstanding at the end of the period (including treasury shares)
    As of March 31, 2018   238,785,310 shares  
As of December 31, 2017 238,496,810 shares
b. Number of treasury shares at the end of the period
As of March 31, 2018 1,007,710 shares
As of December 31, 2017 1,007,710 shares
c. Average number of common shares outstanding during the period (cumulative from the beginning of the fiscal year)
For the three months ended March 31, 2018 237,623,721 shares
For the three months ended March 31, 2017 218,411,890 shares
 

* 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.

Additional time is needed to prepare the notes regarding IFRS 15, which was adopted in FY 2018. The Company intends to disclose the Quarterly Consolidated Financial Statements and Significant Notes as soon as they have been prepared. Supplementary information to this earnings release, including the Company’s results by segment, will be available today at the following IR website: https://linecorp.com/en/ir/top.