HONG KONG, Aug. 15, 2024 /PRNewswire/ -- Newborn Town released its positive profit alert for the first half of 2024 on August 15th. The company reported substantial revenue growth and sustained profit increases, driven by the smooth progress of various business segments and the continued release of market momentum in the MENA region.
For the six months ending June 30th, 2024, the company's total revenue was estimated to be approximately RMB2,247 million to RMB2,297 million, reflecting a year-over-year growth of about 63.4% to 67.1%. Net profit was expected to range between RMB365 million to RMB400 million, representing an increase of 20.9% to 32.5% year-over-year.
Profit attributable to the owners was estimated to range between RMB205 million to RMB240 million, showing an increase of 10.8% to 29.7%. Adjusted EBITDA is estimated to range between RMB430 million to RMB460 million, up 23.9% to 32.6% year-over-year.
In the first half of 2024, the company continued developing its pan-audience social networking business. The first-mover products, MICO and YoHo, experienced steady growth, consistently contributing to cash flow and profits. TopTop and SUGO, as the second-mover products, also proliferated with their revenue shares continuously increasing.
Meanwhile, Newborn Town has continued to expand its scale in the MENA region. Since entering this market in 2017, the company has been nurturing a robust business ecosystem, consequently establishing a strong entry barrier supported by localization strengths.
According to Sensor Tower's revenue rankings of social apps in the MENA region from January to May 2024, MICO, YoHo, TopTop and SUGO ranked in the top 10 within their respective niche categories.
In recent years, products like TopTop and SUGO have tapped into the MENA market to validate the business model. Embarking from concept to execution, the products advanced successfully, leveraging market experience to expand into the global markets, resulting in rapid growth.
Benefiting from the improved product quality, TopTop was featured on the official Apple App Store in May, reaching users in dozens of countries and regions through recommendations, including Saudi Arabia, the UAE, Qatar, and Oman.
Newborn Town leveraged refined operations in its diverse-audience social networking segment to strengthen its brand impact in key markets. Since 2024, the LGBTQ+ community platform HeeSay has launched a series of offline events in Bangkok, Ho Chi Minh City, Tokyo, and Los Angeles.
By combining online and offline social interaction experiences, HeeSay has fostered a more profound sense of belonging and recognition among its users.
The company also remains committed to supporting its innovative business while making steady strides in the social networking segment. In the first half of 2024, the quality games achieved remarkable results, generating RMB 387 million of recharge.
The flagship game, Alice's Dream: Merge Games, has entered the charts published by Sensor Tower, being one of the top 30 Chinese mobile games by overseas revenue for two straight months in May and June. Another quality game, Taylor's Secret, is emerging as a strong contender in the mobile game market and is beginning to show promise.
Moving forward, Newborn Town will leverage its localization capabilities to amplify its advantages in the MENA market's pan-audience social networking business. It will also continue to replicate more multi-million-dollar monthly revenue products.
Simultaneously, the company will actively pursue growth in the diverse-audience social networking sector and quality games, aiming to serve a broader global user base and achieve diversified and sustainable progress.
