Media company Yeah1 Group on Wednesday announced its 2019 business plans at its annual general meeting, setting a growth target its chief said is the lowest in its history.
Chairman Nguyen Anh Nhuong Tong said net revenues are expected to grow by 19 per cent, “the lowest growth target … since the day Yeah1 Group was established.”
He admitted business this year has been badly hit after YouTube said SpringMe, in which Yeah1 has a nearly 17 per cent stake, had violated its policies in selecting and managing channels and videos.
YouTube went on to terminate all its deals with Yeah1’s subsidiaries and associates that were carrying on YouTube Adsense–based business activities.
Yeah1’s share immediately plummeted by over 50 per cent in the stock market.
“We are making efforts to overcome it,” Tong told shareholders.
Yeah1 is continuing to develop its multi-channel network business and making efforts to reach agreement with Youtube.
The group will continue to develop in the digital segment and invest in developing quality digital content.
Operating costs will increase as a result of spending on PR and brand promotion.
But in 2018 Yeah1 successfully boosted local growth and international expansion.
It achieved all key targets related to revenues and profits. Revenues nearly doubled to VND1.7 trillion (US$74.5 million) as digital media and traditional media grew by 93 per cent and 103 per cent.
Consolidated profit after tax was VND163 billion ($7.2 million), a year-on-year increase of 98.2 per cent.
Yeah1 operates several successful divisions, leveraging on its massive community to build its movie, television, digital, and publishing businesses.
Last June it became the first media company to list in Viet Nam. — VNS