HONG KONG, March 6, 2024 /PRNewswire/ -- Newborn Town Inc. ("Newborn Town"; 9911. HK) released its positive profit alert for the year ended 31 December on 5 March. The company has continued its growth momentum and achieved a remarkable increase in major indicators.
Newborn Town's total revenue for 2023 is expected to be approximately RMB3,270 million to RMB3,410 million, representing a YoY increase of 17% to 22%. The net profit will see a YoY rise of 161% to 182%, as it's expected to be around RMB750 million to RMB810 million.
The profit attributable to the owners of Newborn Town will reach RMB500 million to RMB560 million, increasing by 285% to 331%. The adjusted EBITDA will be around RMB670 million to RMB730 million, representing an increase of around 79% to 95% compared to the corresponding period in 2022.
Newborn Town is the tech company that eyes global social networking and entertainment markets
According to the announcement, Newborn Town's profit growth has been achieved due to the progress made in the social networking business, especially in MENA and new social apps.
The past year has witnessed continued rapid breakthroughs in major markets like MENA and remarkable progress in the scale-up and commercialization of 'second-mover' apps like SUGO and TopTop, enhancing Newborn Town's overall businesses' high-quality growth.
MICO, YoHo, SUGO and TopTop, the flagship apps under Newborn Town's 'pan-audience social networking business', aim to meet global users' diversified social demands.
Most social apps in this segment have made rapid strides as they've evolved into top-notch platforms in emerging markets like MENA and SEA.
Based on the localized capabilities accumulated in the long-term process of globalization, Newborn Town has fully implemented the 'replication' strategy, enhancing the rapid scale-up of new products in target markets while lowering operational costs and upgrading commercialization efficiency.
For example, the companion-based social app SUGO showed a surge in revenue and profit in 2023, representing a triple YoY increase. Besides, it has been ranked among the top 30 Chinese non-game publishers in terms of overseas revenue released by data.ai many times.
Newborn Town has also accelerated its exploration of the 'diverse-audience social networking business' and gained ground. In 2023, the company completed the acquisition of BlueCity and achieved profitability.
On 1 January 2024, Newborn Town officially unveiled the online community app HeeSay to over 70 countries and regions worldwide. Based on the user base and brand influence that the international version of Blued has accumulated previously, HeeSay has revved up its global business layouts with the advantages of deep localization.
It's noteworthy that HeeSay has achieved sustained profitability since its closed beta test. Henceforth, the boundary of Newborn Town's social networking business won a further expansion while its commercialization efficiency got continuous upgrades.
Apart from the above-mentioned segment, Newborn Town's innovative business has achieved breakthroughs in 2023. The flagship game, Alice's Dream: Merge Island, witnessed a continued rise in monthly revenue, reaching over 8 million US dollars in the fourth quarter of 2023.
Besides, Alice's Dream was also a top-ranked frequenter in Sensor Tower's lists regarding overseas revenue and downloads this year.
In addition to the success of Alice's Dream, Newborn Town rolled out new apps like Taylor's Secret, Merge Cove, and Sudoku to capture a larger global market share of puzzle games.
Notably, according to data.ai, Sudoku ranked third on the US mid-core casual games list for June 2023.
In 2023, Newborn Town took the 'pan-audience social networking business' as its core segment and achieved further breakthroughs among key markets while verifying the growth potential of newly launched products.
Meanwhile, the diverse-audience social networking business and the game-centric innovative business have progressed smoothly, jointly promoting the high-quality growth of Newborn Town.
Newborn Town will continue to increase its input and dig deep into vast opportunities in MENA while focusing on diverse-audience social networking and quality games to gain diversified and sustainable growth in the years to come.
It's reported that Newborn Town will hold the annual results announcement in Hong Kong on March 22, 2024.
