BRIEF: Newborn Town’s profit grows, but at a high cost
Social media platform operator Newborn Town Inc. (9911.HK) said its profit rose 28% to 225 million yuan ($32 million) in the first half of this year, according to its interim results published on Thursday. Its revenue during the period reached 2.27 billion yuan, up 65% year-on-year.
Despite the strong revenue growth, the company’s costs increased by an even higher 69% to 1.13 billion yuan. That included a 53.5% jump in revenue sharing and commission fees to 790 million yuan, and a massive 146.6% increase in employee benefit expenses to 133 million yuan.
Earlier this month, the company was notably granted a regional headquarters business license from the Ministry of Investment of Saudi Arabia, making it the first global social entertainment enterprise to establish its regional headquarters in Saudi Arabia.
By Lau Chi Hang
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