Newborn Town 1H2021 revenue expected to exceed 1 Billion with YoY growth of 575%
On 9 July, Newborn Town Inc. (9911.HK), China's top social networking enterprise going global announced its latest unaudited operating figures. The Company has further expanded its global user base and expected strong growth in revenue for the first half of 2021 after continuous investment in audio and video social applications, and mobile game applications.
Expected increase of over 575% YoY for 1H2021 revenue; and over 50 folds YoY increase for value-added service revenue
In 1H2021, value-added service revenue will reach RMB 810 to 840 million, an increase of over 50 folds year-on-year and accounted for approximately 80% of the total revenue. According to the 2020 annual report, the Group's value-added services include live-streaming rewards, chat duration purchase, membership subscription, advanced function purchase, etc. As the social networking business grows rapidly, value-added services have generated exponential growth for the Group.
The revenue of traffic monetization business has been another revenue stream. The segment is expected to grow substantially by over 50% year-on-year, reaching RMB 205 to 225 million.
The overall revenue in 1H2021 is expected to reach RMB 1,015 to 1,065 million, an increase of over 575% year on year, which is close to the total revenue of 2020.
Penetrating into the high-value market with 18.23 million of average Monthly Active Users (MAU) for social networking apps
The revenue growth has been the result of growing user base and effective traffic monetization. According to the announcement, the average MAU of the social networking apps increased to 18.23 million during the second quarter of 2021. The Group's average MAU of 1H2021 increased by over 38% compared with 2H2020.
Since 2015, Newborn Town Inc. has been focusing on the global social networking market. It has successfully developed a competitive product portfolio of audio and video social networking apps, such as Yumy, Yiyo, MICO and YoHo, and launched the products in several markets including the Middle East, North America, South East Asia and South Asia, etc. In the 2020 annual report, the Group proposed to make roads into the markets with abundant high value users, such as Europe, Japan and Korea, in order to enhance its strategic layout in the global social networking market.
According to the operating figures of second quarter, the Group's development strategies achieved remarkable results. MICO ranked top 20 of the Best-Selling Social Applications in the US and top 10 of the Best-Selling Social Applications in Switzerland, Belgium, Canada and various European and American countries. YoHo also ranked top 10 of the Best-Selling Social Applications in Portugal, Denmark, Austria, etc.
Conclusion: Newborn Town Inc. is experiencing rapid growth with promising performance
Newborn Town Inc. is exploring the overseas markets in full swing, creating appropriate products to suit the needs of various market with the help of localized teams, and constructing a long-lasting social networking ecosystem to monetize users' values.
At the same time, the Group is expanding to different vertical markets, such as developing the mid- to hard-core mobile games. As the user base grows further and the social networking business develops rapidly, we can look forward to the financial performance of Newborn Town for 2021.
09/07/2021 Dissemination of a Marketing Press Release, transmitted by EQS Group.