Newborn Town saw its net profit increase by 28% to RMB 388 million, while revenue in the MENA market increased by over 44% in the first half of 2024.

HONG KONG, August 30, 2024 /PRNewswire/ — On August 29Newborn Town (09911. HK) has revealed its interim results for the first half of 2024, showing significant growth across key operating metrics. The improvement was driven by the rapid growth of its all-audience social business and continued expansion into the MENA market.

According to the announcement, Newborn Town recorded total revenue of 2,272 million RMB in the first half of 2024, which means a significant increase of 65% compared to the previous period. Net profit for this period reached 388 million RMBan increase of 28% compared to the previous period. The profit attributable to the owners of the Company amounted to 225 million RMBrepresenting an increase of 21% compared to the previous period. Adjusted EBITDA totaled 448 million RMBshowing a 29% increase compared to the previous period.

The social media business segment achieved solid growth, reaching revenues of approx. 2,070 million RMBwhich is an increase of 67% on a period-to-period basis. In addition, the innovation sector made significant progress, recording around 202 million RMB revenues, which represents an increase of 54% compared to the previous period.

Remarkably, the company’s long-term investment in the MENA region is generating positive feedback. The ability to “repeat products” has been further strengthened, and new products represented by SUGO are maturing rapidly, which is giving the company a fresh boost in growth.

As one of the core markets, the MENA market has consistently been a key focal point for the strategic execution of the company’s localization strategy. Through years of deep regional operations, Newborn Town has built a comprehensive regional organization, cultivated a local team of employees, and established strong connections with local creators and partners.

The benefits of Newborn Town’s localization efforts are becoming increasingly evident: In the first half of 2024, the MENA market accounted for more than 50% of the company’s social networking revenue, with core products growing 44% year-on-year.

The MENA region has also been a market for the incubation of Newborn Town’s new business. High-potential products such as TopTop and SUGO have been successfully scaled from the outset as their business models have been validated for global market expansion.

This August Saudi Arabia The Ministry of Investment has awarded Newborn Town a Regional Headquarters License (RHQ), making it the world’s first social entertainment company to establish a regional headquarters in Saudi ArabiaThis move further consolidates Newborn Town’s efforts in the MENA region.

Under the RHQ program, Newborn Town will strive to build a trustworthy enterprise in the MENA region by working closely with governments, actively engaging in community development and charitable activities, serving the local community, and building an ecosystem.

Continuously expanding the moat with its localization power, Newborn Town has also achieved significant breakthroughs in product performance, beginning to achieve the goal of replicating popular apps that generate tens of millions of dollars in monthly revenue. After MICO, the companion-based social app SUGO has achieved the goal.

Newborn Town’s operational strategy, focused on developing “Bushes” residential applications with diversified functions, was developed by deeply understanding the specific social and entertainment needs of users. Under this strategy, Newborn Town’s strength in application operation has steadily increased, along with improvements in the middle platform mechanism.

In addition, the Company’s combined, localized operational resources have accelerated the development of popular applications, enabling rapid time to market, cost-effective trial-and-error testing, and highly effective validation.

SUGO and TopTop, the new apps within Newborn Town, have seen explosive revenue growth. For example, SUGO achieved over 250% revenue growth compared to the previous period. In July, SUGO contributed the majority of Newborn Town’s revenue among apps.

TopTop, a social gaming platform that saw revenue double in the first half of the year compared to the previous period, was featured as a recommendation on the Apple App Store in May, reaching users in dozens of countries and regions, including Saudi Arabiathis United Arab EmiratesAND Oman.

Pioneer products such as MICO and YoHo also made significant progress. MICO, TopTop, SUGO and YoHo were among Sensor Tower’s top ten highest-grossing social apps in the MENA region from January to May 2024.

According to the announcement, the company will continue to create successful products in increasingly specialized niches and replicate more applications that bring in tens of millions of dollars in monthly revenue.

In addition to its successes in the social media industry, Newborn Town has also seen significant progress in other segments of its business.

HeeSay, the online LGBTQ+ community, has strengthened its global brand presence with more refined in-app operations. Since the beginning of this year, the platform has launched a series of offline events in Bangkok, Ho Chi Minh City, Los Angelesetc., strengthening the sense of community among users. These efforts have contributed to an increase in business scale by about 25%.

In addition, the Company continued to invest in the development of high-quality games. In the first half of 2024, Newborn Town’s high-quality games reached a top-up 387 million RMBup 393% from the previous period. Its flagship title, Alice’s Dream: Merge Games, secured a place among Sensor Tower’s top 30 Chinese mobile games by overseas revenue in May and June.

Overall, Newborn Town made significant progress in key markets and across business segments in the first half of 2024. The Company reinforced the validity of its business models in the social sector, strengthening the competitiveness of its new products and injecting new growth catalysts.

In the future, Newborn Town aims to further expand its social entertainment business by gaining a foothold in the MENA region and expanding globally to create positive emotional values.

View original content to download multimedia: https://www.prnewswire.com/apac/news-releases/newborn-town-notuje-wzrozrow-zyski-netto-z-28-do-388-milionow-renminbi-podczas-gdy-przychody-rynku-mea-wzrosły-o-ponad-44-w-pierwszej-polowie-2024-302234555.html

SOURCE Newborn Town