Newborn Town Announces 2023 Interim Results, Witnessing Double Profit Growth and Further Improvement in Business Layout

HONG KONG, Aug. 25, 2023 /PRNewswire/ -- Newborn Town Inc. ("Newborn Town"; 9911. HK) announced its interim results for the six months ended 30 June 2023. During the first half of 2023, this tech company that eyes global markets has seen a substantial increase in its major profit indicators.

Its core business segments, the pan-audience social networking business and niche game-related innovative business, have made significant breakthroughs while actively exploring the diverse-audience social networking business.

For the first half of 2023, Newborn Town recorded a revenue of RMB 1,375 million, remaining stable compared to the corresponding period in 2022. Profit for the period totaled RMB 302 million, representing an increase of around 96%. And profit attributable to the owners of Newborn Town rose by 124% to RMB 185 million.

According to the announcement, Newborn Town has achieved overall improvement in both operational quality and efficiency thanks to the further upgrade of localization capabilities and reinforcement of its replication capabilities. And these moves have brought the results of apparent growth in profits and steady progress that has been made in revenue.

As the core business segment of Newborn Town, the company has geared towards pan-audience social networking track over the past few years by launching multiple apps tailored for this user group.

In the newly-released list of the top 30 Chinese non-game publishers regarding overseas revenue for June by data.ai, three flagship apps MICO, YoHo and SUGO entered simultaneously. And Newborn Town thus became the social entertainment company having the most apps on the list.

Due to the adjustment of the content ecosystem and continued investment in major markets, Newborn Town's pan-audience social networking business has witnessed a full-fledged increase in its commercialization efficiency. For the first half of 2023, Newborn Town's social networking business recorded a revenue of RMB 1,243 million and a YoY increase of over 50% in gross profit.

In addition, Newborn Town has also made positive progress in innovative business, especially the quality games. For the first half of 2023, the revenue of innovative business reached RMB 131 million, representing a YoY increase of 21%.

According to the announcement, the first half of 2023 has seen continuous breakthroughs in flagship games products and the launch of multiple new apps, as the growth model of quality games track was further verified during this period.

Mergeland-Alice's Adventure, the self-developed casual game by Newborn Town, has achieved monthly revenue of over US$2 million in Q2 2023. Sudoku, one of the newly-launched games, has ranked the 3rd on the list of the US medium-sized casual games for June by data.ai.

Apart from these breakthroughs, Newborn Town also further eyed the diverse-audience social networking track in the first half, as it announced the completion of its consolidation of BlueCity, the leading LGBTQ+ online platform, earlier this month.

Blued, as the major social app of BlueCity, has achieved dramatic growth in its overseas operation via a series of optimization approaches by Newborn Town regarding customer acquisition models, monetization scenes, and localized operations.

Moving forward, Newborn Town will continue to help Blued further put down roots in overseas markets by iterating products and deepening localized operations.

Li Ping, CEO of Newborn Town said, "This year has seen solid and quality growth in our company. And we will continue to set an eye on these three business segments, which are the pan-audience social networking business, the diverse-audience social networking business, and the niche game-related innovative business, cementing and upgrading our position as the frontrunner in the global social networking and entertainment track."

SOURCE Newborn Town