Adways Inc., a Japanese Internet advertising and marketing agency, is surging on optimism earnings will benefit from its tie-up with mobile-app creator Line Corp., according to Tachibana Securities Co.
The shares jumped 7.9 percent to 2,190 yen as of 12:58 p.m. in Tokyo, headed for a record high. Adways surged more than 800 percent since announcing a deal to be the agent for Line’s “Free Coin” application on July 10. More than $1 billion in Adways stock changed hands yesterday, according to data compiled by Bloomberg.
“The popularity of Line’s hit apps is unprecedented,” said Hisayuki Shimokawa, analyst at Tachibana Securities in a telephone interview today. “Its apps are consistently among the top 10 most popular, a sign business performance must be growing substantially. Adways’ earnings may see a big impact from that tie-up.”
Parent-company Naver Corp. is considering listing shares of closely held Line on the Tokyo Stock Exchange and Nasdaq market by 2014, MoneyToday reported on Oct. 15. Naver has surged 72 percent to 610,000 won in Seoul this year. Adways said on Aug. 14 it has signed an advertising agreement with Twitter Inc., the microblogging service preparing to go public in the U.S.
Line’s “Pokopang” was the second-most popular on Apple Inc.’s App Store in Japan today, while four of Line’s offerings were among the top 10 free Android apps on Google Inc.’s Google Play rankings.