While Line’s Quarterly Results Are Disappointing, Indicators Suggest Its Solid User Base Is Intact
We expect the stagnation of Line’s advertisement business to disappoint the market in the short run. Cost per mille, or CPM (advertisement revenue paid over 1,000 impressions) dropped to JPY 380 from JPY 434 in the previous quarter and JPY 491 in the prior-year period, as an increase in overseas ads and the transition to new ad platforms worsened the product mix. As a result, display ad revenue growth in the September quarter was 13%, representing a slowdown from 62% in the June quarter; consequ...
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