Yeah1 on course to achieve 5-year high profits
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Online entertainment company Yeah1 expects profits to grow by 20% this year and reach their highest levels in five years.
Its revenue target, though 35% higher than last year’s figure, is only a third of that of 2019.
CEO Dao Phuc Tri said Yeah1 bought back a 35% stake in two companies, Yeah1 Edigital and Netlink Vietnam, in February.
They used to be its subsidiaries, but it had to sell them in 2021 due to financial difficulties.
The acquisitions mean the company would have a professional team of game show producers and indirectly own social media’s large pages and channels, Tri said.
Yeah1 has completed restructuring of its business and identified key growth pillars for the next five years, including producing TV series, which account for over 30% of its ad revenues, he said.
The company plans to sell 45 million shares in a rights issue to raise VND450 billion.
Last year its revenues had plummeted by 71% to VND314 billion, while post-tax profits fell by 17% to VND25 billion.
Yeah1 started out as a new platform for youth and grew into a giant online entertainment company with millions of followers on social media.
Questions & Answers
Q.What is Yeah1's projected revenue target for this year compared to previous years?
What is Yeah1's projected revenue target for this year compared to previous years?
Yeah1 aims for revenues 35% higher than last year, but this target is still only a third of the revenue achieved in 2019. The company's revenues plummeted by 71% to VND314 billion last year.
Q.Why did Yeah1 reacquire stakes in Yeah1 Edigital and Netlink Vietnam?
Why did Yeah1 reacquire stakes in Yeah1 Edigital and Netlink Vietnam?
Yeah1 bought back these stakes in February after selling them in 2021 due to financial difficulties. The acquisitions provide the company with a professional game show production team and indirect ownership of large social media pages.
Q.What are Yeah1's main growth strategies for the next five years?
What are Yeah1's main growth strategies for the next five years?
The company has identified key growth pillars, including producing TV series, which already contribute over 30% of its advertising revenues. Yeah1 has also completed its business restructuring.
Q.How does Yeah1 plan to raise capital for its operations?
How does Yeah1 plan to raise capital for its operations?
Yeah1 plans to raise VND450 billion by selling 45 million shares in a rights issue. This capital is intended to support the company's future plans and growth.