Newborn Town (SEHK:9911) Achieved over RMB 3.5 Billion Total Revenue in the First Three Quarters, with Social Networking Business Achieving Over 60% Year-on-Year Growth
[24 Oct 2024 - Hong Kong] Newborn Town Inc., a leading global social entertainment company (Newborn Town or the company, stock code: SEHK 9911 ), released its unaudited operating data for the first three quarters of 2024, demonstrating robust growth in its core social networking business. Key performance indicators reflected outstanding progress, with social networking business revenue reaching approximately RMB 3,240 million to RMB 3,280 million. This represents an increase of approximately 60.7% to 62.7% compared to the same period in 2023.
The substantial increase in social networking business revenue was largely credited to the rapid and sustained growth of Newborn Town's portfolio of social apps. Since the beginning of this year, the pan-audience social networking business has continued to expand, with a focus on key regions such as the Middle East and North Africa (MENA). It has been consistently optimizing its operational strategies, enhancing user experiences, and improving monetization efficiency,
In the third quarter, the companion-based social networking app SUGO has maintained strong growth and become the company's highest-grossing social-product. It also became Newborn Town's second social app, after MICO, to surpass USD 10 million in monthly revenue. According to data from the analytics platform data.ai, SUGO has consistently ranked among the top spots on iOS social app bestseller lists in key markets such as the United Arab Emirates, Saudi Arabia and Turkey.
Through localized product innovation, refined operations, content ecosystem development, and ongoing optimization of monetization strategies, the company's various products have secured leading positions in niche markets. This has further bolstered the competitiveness of its pan-audience social product portfolio in key regions.
Meanwhile, the company has made positive strides in its diverse-audience social networking business. Since the launch of HeeSay (the LGBTQ+ online community), Newborn Town has rapidly expanded its global brand influence through innovative events such as the HeeSay Gala and the LivelyLaugh Campaign. As a result of these efforts, HeeSay was recognized by DatingNews.com as one of the 10 most innovative LGBTQ+ dating apps in 2024.
While the core social networking businesses continue to experience sustained growth, the innovative business segment has been demonstrating steady performance as the company's second growth curve. For the nine months ended 30 September 2024, revenue from the innovative business segment reached approximately RMB 300 million to RMB 320 million, reflecting an increase of about 12.4% to 19.9% compared to the same period in 2023.
In addition, the company's quality games business has continued to make significant breakthroughs. Boosted by increased revenue from flagship titles like Alice's Dream: Merge Games, the business segment achieved an amount of recharge of approximately RMB 576 million during the period, representing a remarkable increase of about 182.5%. In 2024, Alice's Dream: Merge Games experienced rapid growth, ranking among Sensor Tower's top 30 Chinese mobile games in overseas revenue for both May and June.
The company continued to strengthen its core competitive advantage centered around "localization", whilst exploring the growth potential in the MENA market. In August 2024, Newborn Town was granted a Regional Headquarters License (RHQ License) by the Ministry of Investment of Saudi Arabia (MISA). Following this milestone, the company and MISA jointly hosted an event in Riyadh titled "To Connect, Explore, and Thrive Together", envisioning a bright future for the local online social entertainment industry.
Looking ahead, Newborn Town plans to extend its reach from the Middle East to global markets. By capitalizing on its strengths in "product replication" and "market replication", the company aims to create positive emotional values for a broader audience worldwide.
About Newborn Town Newborn Town has grown into a leading technology company which was listed on the Main Board of the Hong Kong Stock Exchange (HKEX) in 2019 under the stock code 9911. Committed to creating positive emotional values worldwide, Newborn Town has developed a diverse portfolio of applications in the social networking and entertainment sectors. Its social apps include MICO, YoHo, TopTop, SUGO and HeeSay, together with gaming products like Alice's Dream: Merge Games. These applications have achieved widespread acclaim, reaching over one billion users in over one hundred countries and regions. Newborn Town considers the Middle East and North Africa (MENA) region a key market and has also extended its influence in Southeast Asia, Europe, the United States, Japan, and South Korea. The company aims to become the world's largest social entertainment company.
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File: Newborn Town(SEHK:9911) Achieved over RMB 3.5 Billion Total Revenue in the First Three Quarters, with Social Networking Business Achieving Over 60% Year-on-Year Growth 24/10/2024 Dissemination of a Financial Press Release, transmitted by EQS News. |
