Yeah1 suffers another year of loss
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Media company Yeah1 reported a post-tax loss of VND151 billion ($6.55 million) last year, its second straight year of losses, as it developed a new business.
Amid the Covid-19 pandemic the company, one of the largest digital media ecosystems in Vietnam, decided to set up a new multi-channel trading platform, Giga1, which seeks to cut out intermediaries and deliver goods directly from manufacturers to customers.
“In 2020, we spent a lot of resources on this ecosystem of consumption and retail, which led to higher spending and affected the company’s profits,” Nguyen Dang Quynh Anh, deputy director of Yeah1, said.
Revenues fell by 16 percent last year to VND1.22 trillion. In March, its contract with YouTube was terminated due to a violation of policies.
It began as an operational error but later “turned into a real crisis for the company,” chairman Nguyen Anh Nhuong Tong said.
Questions & Answers
Q.What is Giga1 and why did Yeah1 establish it?
What is Giga1 and why did Yeah1 establish it?
Giga1 is a new multi-channel trading platform developed by Yeah1. It aims to cut out intermediaries and deliver goods directly from manufacturers to customers, in response to the Covid-19 pandemic.
Q.How significantly did Yeah1's revenues decline last year?
How significantly did Yeah1's revenues decline last year?
Yeah1's revenues fell by 16 percent last year. The total revenue for the period was VND1.22 trillion, contributing to the company's second consecutive year of losses.
Q.What was the main reason for Yeah1's increased spending last year?
What was the main reason for Yeah1's increased spending last year?
Yeah1 spent a lot of resources on developing its new consumption and retail ecosystem, Giga1. This increased spending affected the company's profits, as stated by deputy director Nguyen Dang Quynh Anh.
Q.Why was Yeah1's contract with YouTube terminated?
Why was Yeah1's contract with YouTube terminated?
The contract was terminated due to a violation of policies. Initially, it was an operational error that later escalated into a significant crisis for the company, according to chairman Nguyen Anh Nhuong Tong.
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