BRIEF: Newborn Town’s revenue jumps on acquisitions
Developing markets social media operator Newborn Town Inc. (9911.HK) said on Tuesday its revenue rose more than 50% last year, as it consolidated two recent acquisitions into its results for the first time over the full year. But its profit for the year fell due to a high base in the year-ago period caused by a one-time gain.
Newborn Town said it expects to report its revenue totaled between 5 billion yuan ($687 million) and 5.2 billion yuan last year, up 51.1% to 57.2% year-on-year. It credited the big gain to its recent acquisitions of two social media operators, BlueCity Holdings and Land of Glory Ltd., as well as the greater use of AI in its products.
It said it expects to report a net profit for 2024 of between 460 million yuan and 500 million yuan, down between 10.3% and 2.5% from 2023. Excluding the effects of a 160 million yuan one-time gain related to its investment in Chizicheng Strategy Investment Ltd., the company’s profit rose about 30% last year.
Newborn Town’s shares jumped 12.5% to close at HK$5.32 on Wednesday after the announcement. The stock has tripled over the last year.
By Doug Young
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