Online entertainment company Yeah1 expects profits to grow by 20% this year and reach their highest levels in five years.
Its revenue target, though 35% higher than last year’s figure, is only a third of that of 2019.
CEO Dao Phuc Tri said Yeah1 bought back a 35% stake in two companies, Yeah1 Edigital and Netlink Vietnam, in February.
They used to be its subsidiaries, but it had to sell them in 2021 due to financial difficulties.
The acquisitions mean the company would have a professional team of game show producers and indirectly own social media’s large pages and channels, Tri said.
Yeah1 has completed restructuring of its business and identified key growth pillars for the next five years, including producing TV series, which account for over 30% of its ad revenues, he said.
The company plans to sell 45 million shares in a rights issue to raise VND450 billion.
Last year its revenues had plummeted by 71% to VND314 billion, while post-tax profits fell by 17% to VND25 billion.
Yeah1 started out as a new platform for youth and grew into a giant online entertainment company with millions of followers on social media.