HONG KONG, March 8, 2022 /PRNewswire/ — Newborn Town (9911.HK), China’s largest international social networking company, issued a profit alert 8 March. The company expected revenue and adjusted net income to double, while adjusted EBITDA was expected to increase significantly.
I. Revenue and adjusted net income doubled
Newborn Town is China’s largest social networking company globally, which has launched a number of audio and video social products such as Yumy, MICO and YoHo to meet the different social needs of global users, covering the markets of Middle East, South East Asia, South Asia, Europe, North America, Japan and Korea.
In recent years, Newborn Town has achieved excellent financial results. In 2021, the Company’s total revenue is expected to be 2,300 RMB to 2,400 million, an increase of around 100% year-on-year. Adjusted net income is expected to be approximately 300RMB to 320 million, a year-on-year increase of almost 100%. Adjusted EBITDA is expected to grow significantly by more than 75% year-over-year to reach c. 350 RMB at 375 million.
According to the announcement, the expected significant revenue growth was mainly due to the rapid expansion of social business. The company has expanded the user base, improved user value and successfully explored mature markets over the past year. The expected growth in adjusted net profit was mainly attributed to continued rapid growth in net profit in the social business.
According to its announced operating data for 2021, cumulative downloads of the company’s social products reached 344 million by the end of 2021. Monthly active users (MAUs) of social products reached approximately 21.79 million in December 2021nearly doubling average 2020 MAUs. Benefiting from the rapid development of social business, the company’s value-added services revenue grew significantly in 2021, up nearly 200% year-over-year.
2. Deepening the global localization operation to strengthen the company’s competitiveness
With ten years of overseas operational experience, Newborn Town has accumulated abundant localization experience and continued to enhance its competitive advantage. In the overseas market, the Company has set up more than ten operation centers to carry out the localization strategies of its products. It also increased its investment in building large-scale localization teams to accelerate expansion into overseas markets.
The company has recently organized various forms of online and offline activities in different markets to enrich user experience and expand brand and product influence. In ThailandMICO released the theme song, “TUK KRUBin Thai, which was composed and sung by a famous local band, with a Thai idol leading the female music video. The song quickly racked up over 1.1 million plays on YouTube upon its release.
In the United States, MICO held its “2021 Annual Gala”. The winners of the event were featured in MICO’s promotional videos that were looped on screens at various landmarks, such as Times Square in New York Citythe Chinese Theater on the Avenue of the Stars in Los Angeles and the Georgia Aquarium in Atlanta. In JapanMICO partnered with SoftBank Group, where winners of the event were invited as SoftBank models to appear on the cover of physical advertising media and star in commercials produced by MICO and SoftBank.
In the Middle East market, MICO held an annual large-scale offline event last month at Cairothe capital of Egypt, giving out annual awards to the platform’s top content creators and partner organizations. Several famous local artists and singers were invited to give spectacular performances, with all proceeds from the live broadcast of the event going to local charities. Last year, the Egyptian government issued the first online social networking license to the company, which is the only license issued by the local government so far, indicating that Newborn Town has won the goodwill of foreign governments.
3. Planning the social metaverse to expand enterprise boundaries
Newborn Town actively plans to explore the social metaverse, expand business frontiers, and seek multiple sources of growth.
Last November, the Company announced that it had an integration test Meta-City, a metaverse module in the video social app Yumy, to continuously enrich the product’s virtual scenes and metaverse elements. Yumy could become the first social video product in the world to integrate metaverse scenes.
Earlier this year, Newborn Town announced the formation of a metaverse social AI strategic alliance with Digital Dream Vally, a subsidiary of Digital Domain Holdings Limited. The two parties will work together to generate virtual characters in social products, build 3D virtual social scenes, and create social products that integrate metaverse elements, which are expected to accelerate the deep integration of the company’s social products with the metaverse. .
China Securities believes that Newborn Town is a pioneer and active promoter of social metaverse in overseas markets. Analysts point out that Newborn Town’s social products are instant, content-rich, and immersive, which share similarities with the metaverse. Adding metaverse items will help expand its user base, improve user loyalty, and increase revenue from value-added services, etc.
With a focus on social enterprise, Newborn Town is actively exploring diversified development, continuously expanding its business coverage through localization capabilities and expanding into high-consumption regions. It is expected to build a strong global business ecology and relentlessly improve performance to accelerate growth into a force to be reckoned with.
SOURCE Newborn Town Inc.