Recently, LINE announced plans to diversify its mobile game offerings via a series of strategic partnerships with talented game developers in Japan. Given LINE?s large casual gamer base, we believe it will need more time and have to exert more effort to attract premium mobile gamers who typically generate high ARPU, strong loyalty, and longer paying cycles. LINE needs to find the optimal mix of game offerings for both premium and casual gamers to avoid over-monetisation risks
LINE's online-ad sales will show modest growth until the company finds some powerful mobile-ad products, rather than the typical
search and display ad formats
