Show ‘Brother overcomes thousands of thorns’ helps Yeah1 make a big profit

According to the recently released financial report, Yeah1 Group Joint Stock Company (YEG) has revenue of more than 345 billion VND, 3 times higher than the third quarter of last year. This is the highest revenue level since the last quarter of 2020.

During the period, YEG put all their efforts into the program “Brother overcoming thousands of thorns”, broadcast from the end of June. This is a Vietnamese version of the popular “Call me by fire” in China, for male stars in the world. 30 years old. At the end of 15 broadcast episodes, the show almost always ranked first in viewership ratings (ratings) on VTV3 channel in the 8-11 p.m. time frame all week. The show attracts millions of views in each broadcast episode, many top trending performances on YouTube, and heavily discussed content on social networks and media.

Thanks to that, the manufacturer called on dozens of sponsors, the largest being Techcombank. This became the main driver for revenue growth when more than 89% of it came from advertising and media consulting. The cash flow this segment brings in will increase 4.5 times compared to the same period in 2023.

Minus the cost price, YEG has more than 79 billion VND in gross profit, an increase of 3.6 times. Gross profit margin increased from 19.6% to 22.9%. This is also the highest gross profit since the fourth quarter of 2018.

During the period, Yeah1 also had an additional 24.5 billion VND in financial revenue, more than doubling. They record most of the gain from the difference between the fair value and carrying value of the investment in the associate, plus interest on deposits and loans.

The group of fixed costs increased when production and business activities bustled again. In particular, business management costs increased by 2.5 times over the same period.

In total, Yeah1 has an after-tax profit of nearly 34.3 billion VND, 10.7 times higher than the third quarter of 2023. This is the highest profit since 2022. If not counting the fluctuating profit in the fourth quarter of 2021 due to the sale of subsidiaries, the above number is returning close to the level of 2018 – the period before the crisis due to the financial crisis. tried YouTube.

Accumulated in the first 9 months of the year, YEG has more than 629 billion VND in revenue, about 2.5 times higher than the same period. The company had a profit of nearly 55.8 billion VND, 4.5 times higher than the first 9 months of last year. Thus, they have completed nearly 79% of revenue targets and nearly 86% of the conservative profit plan.

Yeah1 Group was founded and led by Mr. Nguyen Anh Nhuong Tong from an electronic news site for young people with revenue of 150 USD in the first year, to become the first media company listed on the Ho Chi Minh City Stock Exchange (HoSE). . YEG had a period of decline in 2019-2020 when it lost hundreds of billions of dong due to the incident of YouTube stopping cooperation and the impact of Covid-19.

After that, Yeah1 pivoted to investing in multi-channel commerce with the Giga1 platform with Tan Hiep Phat but quickly “broke up” after just over a year of implementation. This enterprise must continuously transfer subsidiaries, restructure, and find ways to escape losses to avoid stocks being delisted. By mid-2022, Mr. Tong left the Board of Directors with the reason “for the good of the company”. Yeah1 also changed its strategy, from going fast and expanding to going slow and steady to wait for a breakthrough opportunity.

Last year, this business found its direction and determined that producing high-quality programs was its top strategy. CEO Ngo Thi Van Hanh shared with VnExpress On the sidelines of the annual meeting in May, the company “bet everything” on the two shows “Brother Overcoming Thousands of Thorns” and “Beautiful Sister Who Rides the Wind” season two.

As soon as the show for male artists ended, Yeah1 held a concert in Ho Chi Minh City. They said that in just about 90 minutes, 20,000 tickets with prices ranging from 800,000 to 8 million VND were sold out. Excluding the highest price zone, tickets are sold in just one hour. YEG said that in addition to the business story, “Brother Overcoming Thousands of Thorns” and the concert are also their contributions to the cultural industry development strategy as called for by the Prime Minister earlier this year.