Yeah1′s pre-tax profit falls 80pct following incident with YouTube

26-Apr-2019 Intellasia | The Saigon Times | 6:00 AM Print This Post

The pre-tax profit of digital media group Yeah1 in the first quarter of the year was posted at over VND8 billion, down almost 80 percent against the year-ago figure of VND39 billion, the local media reported.

The drop was attributed to the termination of the partnership between the firm and YouTube.

A Yeah1 source said the increasing costs of investing in high-quality media content, which is part of the firm’s strategy to develop its own channels, had caused its consolidated pre-tax profit to plunge.

More money was needed to lease new office spaces, organise events and host communications activities related to the recent incident between its subsidiaries and YouTube, which led to the profit fall in the first quarter.

As such, given Yeah1′s target revenue of VND2 trillion and target pre-tax profit of VND180 billion for this year, the firm has only completed some 19 percent and 4 percent of these targets, respectively.

In early March, Yeah1 ran afoul of the terms of the Content Hosting Agreement with video-sharing site YouTube.

YouTube in a statement sent to Yeah1 said that SpringMe, in which Yeah1 holds a 16.5 percent stake, had repeatedly violated YouTube’s policies on selecting and managing channels.

The media group, as a result, saw its YEG stocks on the local exchange floor sharply dipping for many consecutive sessions, and the rate now sits at approximately VND108,000 per share, down from the previous VND250,000.

Yeah1 has announced its financial report for the quarter, with net revenue reaching VND387 billion, rising by more than 17 percent against last year.

As of March 31, the total assets of Yeah1 were worth some VND2.1 trillion, with over VND700 billion in cash and bank deposits and some VND260 billion in bonds.

https://english.thesaigontimes.vn/67896/yeah1 percentE2 percent80 percent99s-pre-tax-profit-falls-80-following-incident-with-youtube.html

 


Category: Business, Vietnam

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