Yeah1 sets highest profit target in 5 years

Despite the difficult economic situation and many businesses cutting marketing costs, Yeah1 still expects revenue to increase by 35% and profit to increase by 20% this year.

This plan was approved by Yeah1 Group (YEG) at its annual meeting on the afternoon of June 2. If completed, this would be the highest profit since 2019, even though revenue was only one-third of that period.

Mr. Dao Phuc Tri, General Director of Yeah1, said there are two main reasons: growth momentum in the context of a difficult economy and businesses aggressively cutting costs.

First, the company recently acquired 35% of the capital at Yeah1 Edigital Company and Netlink Vietnam Company in mid-February. Both used to be subsidiaries and revenue pillars, but Yeah1 had to divest during a difficult period in 2021 to avoid three consecutive years of losses leading to delisting of shares. According to Mr. Tri, bringing these companies "back home" helps Yeah1 have an experienced program production team, indirectly own a system of pages and channels with large subscriptions on social networks as well as regain its position in the advertising management segment for Google.

The second reason is that the company has completed the restructuring of its business segments, thereby identifying key spearheads in the next 3-5 years. Specifically, the company is investing heavily in the television segment by purchasing shares of a unit that owns two digital television channels with the capacity to produce films and television programs in 2022. In addition, the company is looking for and evaluating options to merge a number of other television channels to increase market share.

Explaining the paradox of expanding the television segment while the viewership trend is shifting to digital content channels, Mr. Tri said that this segment still accounts for more than 30% of the company's total advertising budget, so there is still potential for growth. The company does not develop television alone, but approaches it in the direction of producing television content that develops on many platforms and in many countries.

In addition to television, Yeah1 also earns revenue from event organization, livestreaming and sales on social platforms.

To supplement working capital for its business segments, Yeah1 is planning to issue 45 million individual shares to raise VND450 billion. 15 investors will participate in this offering. Chairwoman of the Board of Directors Le Phuong Thao and General Director Dao Phuc Tri are expected to buy to increase their ownership ratio to 5% each, thereby becoming major shareholders.

Last year, Yeah recorded revenue of VND314 billion and after-tax profit of VND25 billion, down 71% and 17% respectively compared to the previous year. The company lost its streak of four consecutive years of recording revenue of over a trillion. Yeah1 Deputy General Director Che Doan Vien said that the reason for these indicators to decline was because the market was weakening and the company no longer consolidated the business results of companies that used to play a pivotal role.

Yeah1 was founded by Mr. Nguyen Anh Nhuong Tong and led from a youth news website (with revenue of 150 USD in the first year) to the first media company listed on the Ho Chi Minh City Stock Exchange. Mr. Tong left the Board of Directors in the middle of last year. At that time, he commented that after a period of efforts to maintain the listing, Yeah1 would change its development strategy from going fast and expanding to going slow and steady to wait for a breakthrough opportunity.

Orient

Source link