HONG KONG, July 21, 2022 /PRNewswire/ — On July 20, Newborn Town Inc., a global social networking company (9911.HK), announced its unaudited operating figures of H1 2022. In the first half of 2022, the Company’s revenue is expected to reach RMB 1,350 to 1,400 million, a year-on-year growth of approximately 30%.
The major contributor is the Company’s social networking business. In Q2 2022, its MAUs of social products averaged at around 23.09 million, representing a year-on-year growth of about 27%. Its social networking business revenue of H1 2022 is expected to reach RMB 1,250 to 1,285 million, up approximately 50% year-on-year. The soaring growth of social networking business owes a good deal to the boosted commercial efficiency and popularity of the Company’s social apps in multiple global markets.
A second growth curve is also brought by the Company’s innovative business such as refined games. The Company’s innovative business revenue is expected to reach approximately RMB 100 to 115 million, growing by 80% compared to H2 2021.
Social networking business realizes further expansion and enhanced commercial efficiency
Newborn Town has a social networking product matrix that includes Yumy, MICO and YoHo. In H1 2022, the Company has made progress in both “market expansion” and “commercial efficiency enhancement” of its social networking business.
According to data.ai, in the first half of the year, the Company’s open social platform MICO has climbed to the Top 15 Google Play best-selling social apps in both Japan and the U.S. It has also entered the list of Top 10 best-selling social apps in major European and North American countries such as Canada, the UK and France.
The Company’s voice-chat app YoHo has been among the Top 10 best-selling social apps in the U.S., France, Italy and more, breaking through the developed markets beyond its strong supporter base that is the MENA region. Its video-matching social app Yumy has entered the list of Top 10 best-selling social apps in 50 countries and regions such as Hungary, Denmark and New Zealand.
In the first half of 2022, the Company exerted great effort in tapping the Japanese market. In response to local market regulations and preferences, the Company beefed up its local teams and hired more Japanese staff as legal counsels and designers.
Considering Japanese users’ fondness for recreational and sports activities, MICO has held about 20 different online operational activities every month, while also cooperating with Japanese football teams and musicians. These activities have attracted numerous content creators and users to join MICO, helping the platform win remarkable growth and brand influence.
Apart from its efforts in tapping new markets, Newborn Town has also furthered its competitive edges in the MENA and Southeast Asian markets, with an aim to strengthen its industrial influence and continuously fortify its foothold as a leader.
During the holy month of Ramadan in the MENA region, MICO held the first press gathering in Egypt that centered around the online social networking and entertainment industry, where over 20 local mainstream media were invited. Also, cooperating with the Egyptian Food Bank, the 57357 Children Cancer Hospital and other charitable organizations, MICO and YoHo contributed to public welfare undertakings in MENA during the Ramadan.
Innovative business grows swiftly, establishing a second growth curve
Apart from its core business of social networking, Newborn Town has also vigorously furthered the development of its innovative business. It has focused on refined games and explored trends such as the Metaverse and wearable intelligent hardware. Satisfactory progresses have been witnessed in the first half of the year. These jointly led to a second growth curve for the Company.
For refined games, the Company launched the official versions of its two merge games, Mergeland – Animal Adventure and Mergeland – Alice’s Adventure, in April and June respectively. Both games maintain constant version updates to provide diverse gameplay and optimized experience, and will usher in a large-scale monetizing phase due to the Company’s aggressive promotion efforts.
For the Metaverse, the Company has merged a collection of digital collectibles into its social networking app and cooperated with leading companies in the virtual technology domain, such as Phenom Films. Recently, the Company invested in Shi Mi Network Technology, a wearable intelligent hardware manufacturer, extending its business reach to immersive hardware – the vital “portal” into the Metaverse.
In conclusion, in the first half of the year, Newborn Town enhanced the commercial efficiency of its social networking business while having its replicable model verified by the user increase in the high-value markets. Its innovative business also posted rapid growth. Further growth is expected as Newborn Town’s refined games progressively enter into large-scale monetizing phase, along with its continuous expansion into the Metaverse business.
In the future, the Company will ceaselessly progress in the global open social networking domain to promote product innovation, social ecology operation and market exploitation. The Company will also further endeavor to develop its innovative business such as refined games and the Metaverse, so as to fortify its second growth curve and achieve multidimensional and high-quality growth.