Messaging apps are a big deal right now, especially in Asia where apps like Line and WeChat have become something like the app equivalent of a Swiss Army knife. Line has been gaining users like crazy these past couple of years, both within its home country of Japan and all over Asia, but its earnings haven’t been as great. Apparently the company has decided to postpone its highly-anticipated IPO for a second time while it waits for its earnings and market conditions to improve.
Are messaging apps the ultimate smartphone gateway to treasure troves of revenue? That’s what Tencent, Facebook, and Snapchat might have you believe. But struggles at Line indicate that this model has its limitations. The Japan-based messenger has delayed its IPO for the second time, the Wall Street Journal reports, citing unnamed sources familiar with the matter. Reports of an upcoming Line IPO, estimated to be worth as much as 1 trillion yen ($8.2 billion) first surfaced in 2013. While Line’s parent company Naver has continuously remained tight lipped about potential plans to list, a filing with the Tokyo Stock Exchange and subsequent reports of backpedaling indicate the company is struggling to find the optimal time to list. That time does not appear to be now. While Line remains private and doesn’t have to disclose all of its financials, the company’s growth is plateauing. Revenues decreased 1% quarter-on-quarter for the period ending in June.
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