FAST NEWS: Newborn Town’s innovation business jumps

The latest: Social networking platform operator Newborn Town Inc. (9911.HK) said Tuesday it expects to report that revenue from its social networking business reached between 2.95 billion yuan ($415 million) and 3.05 billion yuan last year, up 15.4% to 19.3% from 2022.

Looking up: The company’s innovation business is performing stronger and generated revenues of 320 million yuan to 360 million yuan last year, up 32.2% to 48.8% from 2022.

Take Note: The company’s average monthly active user base at the end of last year reached 27.83 million, up 8.7% from the third quarter but slowing from the 13.8% growth in the previous quarter.

Digging Deeper: Founded in 2009, Newborn Town operates multiple social platforms combining entertainment elements such as dating, group voice chats, livestreaming and short video. It was listed in Hong Kong on the last day of 2019. Previously focused on emerging markets, the company has established mainstream social platforms in the Middle East, Southeast Asia and South Asia, and has made breakthroughs in developed markets such as Europe, the U.S., Japan and Korea. In the third quarter of last year, the company’s consolidation of Chinese dating app operator BlueCity Holdings into its financial statements further enriched its social networking business track, expanding its social networking coverage and target user groups.

Market Reaction: Newborn Town’s shares fell on Wednesday, closing down 2% at HK$1.97 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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