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Newborn Town has announced its operating figures for the first three quarters; Expected revenue growth of over 115% year-on-year; MAU of social apps reaches 20.43 million

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EQS-News / 10/19/2021 / 09:53 UTC + 8

Newborn Town announced its operating figures for the first three quarters

Revenue growth expected to exceed 115% year-on-year

MAU of social apps reaches 20.43 million

On October 18, Newborn Town Inc. (9911.HK), China’s largest social media company globally, announced operating figures for the first three quarters of 2021. The company expects this to be the case. that the turnover of the first three quarters reaches 1.58 to 1.70 billion RMB. , representing significant growth of over 115% year-on-year.

The revenue from the company’s value-added service activities is expected to reach RMB 1.35-1.40 billion. The value-added services business, which is primarily driven by social media activities, has made remarkable inroads in developed markets such as Europe, North America, Japan and Korea.

Based on users, the average monthly active user (MAU) of Newborn Town’s social networking products for the third quarter of this year reached approx. 20.43 million, an increase of approx. 12.07% quarter on quarter (QoQ). As of September 30, 2021, the cumulative number of downloads of social media products reached 298 million, an increase of 17.38% compared to June 30, 2021.

Social Networking Business Has Grown Rapidly With Inroads In Developed Markets

Since 2013, Newborn Town has focused on the overseas market. The company expanded to social networking activities in 2015 and completed its IPO in Hong Kong in 2019. As China’s leading social networking company globally, Newborn Town has developed a series of audio and video social networking products, such as MICO and YoHo.

For the nine months ended September 30, 2021, the Company’s total revenue is expected to reach RMB 1.58-1.70 billion, an increase of over 115% year-on-year. The increase in revenues is mainly attributable to the rapid growth of social networking activities. During the nine-month period, the company’s turnover from value-added service activities is expected to reach RMB 1.35-1.40 billion, mainly coming from social networking activities.

The announcement indicated that Newborn Town’s social networking activity has made remarkable inroads into developed markets such as Europe, North America, Japan and Korea. Newborn Town’s social networking products have led the way in emerging markets such as the Middle East, Southeast Asia, and South Asia, and the company has successfully replicated success in developed markets such as North America and Europe.

Figures from App Annie showed that MICO ranked among the top 10 most profitable social apps in 100 countries and regions, including Canada, UK and Sweden. YoHo, the audio social networking app, also ranked in the Top 10 Most Profitable Social Apps in European and American countries such as the United States and France. In addition to the growing user base, there is also a huge increase in user value.

Achieve greater commercial scale and greater branding effect by investing more in R&D and operation

Newborn Town invested more in product development, promotion, localization and talent cultivation this year, resulting in continuous improvement in performance.

According to the 2021 interim report, the Company’s R&D spending in the first half of the year increased nearly 4 times year-on-year. Along with this, the Company has also increased its contributions on localization.

In the US market, Newborn Town has organized activities such as Rap Battle and Best DJ to merge its social app with rap and electronic music cultures. The Company has also organized public welfare activities to, for example, combat cyberbullying. In Japan, the company embraced elements of animation by inviting the actress from Ultraman, Japan’s national superhero series, to join their platform and collaborate with AnimeJapan to promote their product. Recently, the company partnered with Osaka City Hall to co-host “Illuminating Osaka”, an event that was well received by local government and mainstream media in Japan.

Outstanding performance in overseas markets, attracting investor and media attention

Newborn Town has grown at a steady pace and is regarded as the representative of Chinese companies focused on overseas markets. It has received continued attention from the media and domestic and foreign institutions.

Last week, the famous weekly magazine The Economist published a full page report on the company. In recent months, the company has also been covered by the Chinese Financial Times website, China Daily, the foreign edition of the People’s Daily, Hurun Report and many respected newspapers and magazines, acknowledging the company’s social activity. abroad.

Meanwhile, the capital market has also paid more attention to Newborn Town. Earlier this year, Newborn Town was added to the MSCI China Small Cap Index. BlackRock, Goldman Sachs Asset Management and State Street Global Advisors are among the group of nearly 10 leading institutional investors who had opened positions in the company. In particular, BlackRock has increased its participation on several occasions, showing a vote of confidence in Newborn Town and the social networking business.

Lately, China’s major investment and trading platforms such as Wind, TongHuaShun (10JQKA) and Xueqiu (Snowball) have created their “Overseas Internet Business” division and set up a more detailed consolidation to meet the “Overseas concept” business “. The capital market has its sights set on this sector, and the industry is expected to gain more attention in the future.

Conclusion

Newborn Town is constantly dedicated to all aspects including product development, localized operations and talent cultivation. The Company’s competitive advantages and first-mover advantage are becoming increasingly evident. With its healthy cash flow and capital structure, Newborn Town is leading the way for promising growth. The Company is expected to perform even better by maintaining its competitive advantages in the field of social media abroad.

10/19/2021 Distribution of a financial press release, sent by EQS Group.
The issuer is solely responsible for the content of this advertisement.

Media archive at www.todayir.com


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