Messaging app Line skyrockets in Tokyo trade as profits jump

Shares in the company best known for its cartoon stickers — which too-busy-to-text users rely on to communicate — soared nearly 17 percent to close at 4,880 yen ($43).

The jump came as Line said third-quarter operating profit rose to 5.85 billion yen, handily beating market forecasts of a 4.3 billion yen profit and prompting Deutsche Bank to upgrade its view on the stock.

It was Line’s largest one-day percentage rise since last year’s dual listing in Tokyo and New York following a $1.3-billion initial public offering, according to Bloomberg.

The Tokyo-listed stock soared 32 percent on its first trading day last year.

On Wednesday, Line said quarterly advertising revenue jumped 41 percent from a year ago, even as active monthly users in key markets Japan, Thailand, Indonesia and Taiwan edged down to 168 million.

The app, which has a relatively small presence in the US and Europe, lets users make free calls, send instant messages and post photos or short videos, along with a host of other paid services.

The app — launched in 2011 after Japan’s quake-tsunami tragedy damaged telecoms infrastructure — combines features from Facebook, Skype and WhatsApp with games and a mobile payment service.