| 5. |
Segment Information |
Since the fourth quarter of 2015, the structure of the business units that management uses to make decisions about operating matters, and the main performance measures used for the purpose of allocating resources to the units had changed. Segment reporting was based on two business units, the LINE business and portal segment and the MixRadio segment.
However, the MixRadio segment was subsequently abandoned on March 21, 2016, and retrospectively classified as a discontinued operation in the Consolidated Statements of Profit or Loss. Refer to Note 23 Discontinued Operations for further details.
Segment information is presented for continuing operations. No operating segments have been aggregated to form the reportable segments. Refer to Note 3(27) Significant Accounting Policies for further details on the identification of operating segments.
| (1) |
Description of Reportable Segment |
The Group has a single reportable segment:
|
LINE business and portal segment |
– |
The Group mainly operates a cross-platform messenger application, LINE, and provides communication and content and advertising services. Communication and content are primarily provided to end users via various communication and content. Communication mainly includes LINE Stickers. Content includes LINE Games and LINE PLAY. Others within Communication and Contents include LINE Friends service. Advertising services are provided via LINE advertising, livedoor blog and NAVER Matome. LINE advertising includes “messenger ads” such as LINE Official Accounts, LINE Sponsored Stickers and LINE Point Ads and “performance ads” on services such as Timeline and LINE NEWS. |
| (2) |
Revenues from Major Services |
The Group’s revenues from continuing operations from its major services for the years ended December 31, 2015, 2016 and 2017 are as follows:
| (In millions of yen) | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
|
LINE business and portal segment |
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|
Communication and content |
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|
Communication(1) |
28,725 | 29,290 | 30,225 | |||||||||
|
Content(2) |
49,284 | 44,784 | 40,144 | |||||||||
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Others(3) |
5,985 | 11,923 | 20,241 | |||||||||
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Sub-total |
83,994 | 85,997 | 90,610 | |||||||||
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Advertising |
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|
LINE advertising(4) |
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|
Messenger ads |
26,487 | 33,997 | 39,495 | |||||||||
|
Performance ads |
— | 10,524 | 26,609 | |||||||||
|
Sub-total |
26,487 | 44,521 | 66,104 | |||||||||
|
Portal advertising(5) |
9,925 | 10,186 | 10,433 | |||||||||
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Sub-total |
36,412 | 54,707 | 76,537 | |||||||||
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|
Total |
120,406 | 140,704 | 167,147 | |||||||||
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| (1) |
Revenues from communication were mainly attributable to sales of LINE Stickers, Creator Stickers and Themes. |
| (2) |
Revenues from content primarily consisted of sales of LINE Games and LINE PLAY’s virtual items. |
| (3) |
Revenues from others primarily consisted of sales from LINE Friends service, LINE Part-time Job, LINE Pay service and LINE Mobile. |
| (4) |
Revenues from LINE advertising consisted of fees from “messenger ads” such as LINE Official Accounts, Sponsored Stickers and LINE Points as well as “performance ads” on Timeline and LINE NEWS. |
| (5) |
Revenues from portal advertising were mainly attributable to advertising revenue from web portals, livedoor and NAVER Matome. |
| (3) |
Geographic Information |
Revenues from external customers
Revenues from external customers classified by country or region were based on the locations of customers. Revenues attributable to communication and content have been classified based on the geographical location of the end users. Revenues attributable to advertising have been classified based on the geographical locations where the services were provided.
| (In millions of yen) | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
|
Japan (country of domicile) |
84,780 | 100,939 | 121,283 | |||||||||
|
Taiwan |
17,058 | 15,614 | 16,630 | |||||||||
|
Others |
18,568 | 24,151 | 29,234 | |||||||||
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Total |
120,406 | 140,704 | 167,147 | |||||||||
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Non-current operating assets
Non-current operating assets mainly consist of property and equipment and intangible assets.
| (In millions of yen) | ||||||||
| December 31, 2016 |
December 31, 2017 |
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|
Japan (country of domicile) |
10,661 | 23,089 | ||||||
|
Korea |
3,219 | 10,605 | ||||||
|
Others |
690 | 5,676 | ||||||
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Total |
14,570 | 39,370 | ||||||
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| (4) |
Major Customers |
No single customer accounted for 10 percent or more of the Group’s total revenues for the years ended December 31, 2015, 2016 and 2017.