Newborn Town Inc. (HKG: 9911) Announced the Unaudited Operating Data and unaudited revenue for the year 2020
Annual Revenue is expected to increase by 150%-250% year-on-year while the Monthly Active Users of social networking apps exceeded 10 million
On 28th Jan 2021, Newborn Town Inc. (9911.HK), the flagship going-global internet company released the unaudited operating data and unaudited revenue for the year 2020. It is expected that the Group will record a total revenue of approximately RMB1,050 million to RMB1,350 million for the year ended 31 December 2020, representing a year-on-year growth of approximately 150% to 250%.
According to the announcement, such increase in the revenue is mainly due to the rapid growth of the social networking business, including the increase in user scale, the expansion of markets covered and the diversification of monetization methods. The monthly active users (MAU) of social networking apps reached approximately 11.36 million, representing a significant growth from 9.1 million users, the average MAU of social networking applications in the first three quarters of 2020.
Remarkable achievements in 2020
Continuous expansion of the social networking products with significant market presence in the Middle East, North America, India, Pakistan and Southeast Asia.
Newborn Town has started the overseas business since 2013 and accumulated over 1.1 billion global users. In recent years, the Company focused on developing its open social networking business in the global market through the live-streaming social networking platform MICO and the video social networking platform Yiyo. The MAU of this business segment reached approximately 11.36 million.
MICO is a leading social networking platform in overseas markets, covering over 150 countries and over 100 million global users. MICO ranked No.1 in the Most Downloaded Social Networking Applications in App Store of over 71 countries/regions, as well as the top 10 in the Most Downloaded Social Networking Applications in Google Play of 84 countries/regions.
Expected significant increase in annual revenue, together with enhanced user value
Expansion of the social networking business has led to significant improvement in the user value. In 2020, the Company focused on exploring the social networking market and hence increasing the business scale as well as monetization efficiency with stronger user stickiness and longer in-app duration. The annual revenue is expected to grow by 150%-250% year-on-year.
According to APP Annie, MICO ranked top 10 Bestselling Social Networking Applications in App Store of 90 countries/regions, and ranked top 10 Bestselling Social Networking Applications in Google Play of 86 countries/regions. Yiyo ranked top 10 Bestselling Social Networking Applications in Google Play of 12 countries/regions.
Video social networking business bolstered monetization efficiency
In 2020, the social networking products of Newborn Town integrated with video features, featuring diversified social scenarios and contents such as live streaming, video chat, short video and voice group chat.
In recent years, video has become the major social language. Newborn Town capitalized on its first-mover advantage in the video social networking field to build diversified monetization scenarios, and establish a pluralistic online community with large volume of videos, so as to enhance the user stickiness and the length of in-app duration. The Company also mentioned in the announcement that diversification of monetization methods contributed to the increase in revenue.
Development Strategies for 2021
Continuous efforts on developing the market segment of social networking applications, and boosting the investment in R&D of video products
Newborn Town will continue to place heavy emphasis on developing social networking applications and increasing the investment in research and development on video social networking products. With the overseas internet infrastructures becoming better-established, video will eventually serve as the important communication media among the young people. The integration of video features in social networking products will help the Company to attract a larger number of users and achieve efficient monetization in the long run.
Further expansion in the overseas markets with high quality social networking services and content for global users
As the pandemic remains a widespread disruption to offline social interactions, online social demand is expected to keep growing. The Company will increase efforts on localizing the social networking applications, and hence bolstering its market presence in the developed markets such as North America, Japan, Korea and Europe. Newborn Town expects a continuous expansion in the social networking products due to the favorable economic benefits from the otaku economy worldwide.
Conclusion
Since January 2021, Newborn Town has gained much popularity in the capital market, and achieved substantial increase in stock price, indicating the presence of considerable attention from the investors. Looking forward, the Company will continue to expand its business and geographical reach, with the aim to become the leading social networking platform in overseas market.
