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Line Falls After Outlays for New Businesses Led to Surprise Loss

  • Japan’s biggest messenger created a financial holdings company
  • Line applied for cryptocurrency exchange license in Japan
Line Chief Executive Officer Akira Morikawa Speaks At Line Conference Tokyo 2014
Photographer: Tomohiro Ohsumi/Bloomberg

Line Corp., Japan’s biggest messaging service, fell the most in nine months in Tokyo after reporting a surprise loss in the fourth quarter amid stepped up investment into new businesses.

The shares declined as much as 5.6 percent on Thursday, the biggest intraday drop since April. Line lost 4 billion yen ($37 million) in the quarter, compared with estimates of 2.34 billion in profit, according to Bloomberg data. The company cited upfront costs for AI speakers, game marketing spending and one-time losses related to venture investments and equity method subsidiaries.