Free messaging app provider LINE Corp. said it plans to enter new businesses such as music distribution and online bill payment services.
The company also disclosed for the first time its monthly number of smartphone messaging service users, putting the figure at 170 million worldwide.
LINE was expected to list its stock in Japan or abroad this year, but has put off the plans at least until next year. The company intends to boost its earning capacity before attempting to realise its listing again. However, global competition in the fields of free phone and mobile messaging applications is fierce, so LINE already faces a crucial test.
The company hopes to increase its earning capacity by taking advantage of its user base, which has been expanding as a result of LINE's free phone call application. Among its current businesses, fees charged in smartphone games account for about 60 per cent of sales, while those from stickers - cartoons or illustrations that users can send to friends - account for about 20 per cent.
"I can't promise all the new businesses will be successful," said LINE Chief Executive Officer Akira Morikawa at a press conference Thursday. He said he intended to find profitable businesses through trial and error.
This winter, LINE will launch a new online bill payment service called LINE Pay. Users will be able to send money to LINE app friends - even if they do not know their bank account information - or split a bill for food and drinks.
In the field of music distribution, LINE will establish a joint venture with Sony Music Entertainment Inc. and Avex Digital Inc. to start an all-you-can-listen subscription music service. LINE did not reveal a launch date for the service or other details.
In the game business, LINE announced that it would set up two separate joint ventures with major online social game providers Gree Inc. and CyberAgent Inc.
"It's difficult to earn money from free phone call applications alone, so establishing a system to generate revenue is a challenge for LINE," Hitoshi Sato of InfoCom Research Inc. said.
Concerning its future stock listing, Morikawa said, "It's more important for the company to have its business grow steadily." Morikawa did not offer a concrete statement on when it would again consider listing its stock, saying it would be "when LINE becomes a company in which investors hope to make continual investments."
In September, LINE announced it would postpone its planned stock listing in Japan or the United States within this year.
Created by the Japanese arm of a South Korea-based information technology company, LINE is a free phone call or messaging application for smartphones that features popular stickers used to express emotions through animations or illustrations. As of Thursday, the number of people registered for the Line service exceeded 560 million, with about 90 per cent overseas, specifically in North America, Southeast Asia and Spain. In Japan, 54 million people are registered. As the monthly number of users indicates the number of people who use Line services at least once a month, it differs from the number of people who are registered.