DatVietVAC Posts Over VND135 Billion Profit in First Half Despite Revenue Drop

DatVietVAC, the producer of the show "Anh trai say hi" (Hello Brother), has reported a net profit exceeding VND135 billion (approximately $5.3 million) in the first six months of the year. This figure was achieved despite a 7% year-on-year decrease in consolidated net revenue, which stood at nearly VND1.37 trillion (approximately $53.7 million). The company's leadership explained that the revenue decline is largely due to the seasonal nature of the entertainment industry. The first half of the year is typically a low season, contributing only about one-third of the annual revenue. The remaining revenue is expected in the second half, coinciding with the launch of major programs, concerts, increased advertising budgets from brands, and higher consumer spending on entertainment. The content segment generated VND687 billion ($27 million) in the first half, encompassing activities such as artist management and commercial exploitation, intellectual property (IP) business, content broadcasting, and concert organization and ticketing. In the media services segment, DatVietVAC saw a 12% drop in sales compared to the same period last year, amounting to approximately VND760 billion ($29.8 million). Key revenue streams in this division include influencer marketing, advertising planning and purchasing, and out-of-home advertising. The company's gross profit margin in the first half reached over 21%, indicating that for every VND100 of revenue, DatVietVAC earned VND21 after deducting the cost of goods sold. After expenses, the net profit for the period was over VND135 billion, a slight increase from the previous year. This performance means the company has completed 32% of its full-year profit target of VND420 billion ($16.5 million). Despite not yet reaching half of its annual target, DatVietVAC is confident in achieving its goals within the remaining time. The management cited three key programs – "Tinh hà say hi," "The Masked Singer Vietnam," and "2 ngày 1 đêm" – scheduled to air from the third quarter, all of which have secured at least 85% of their targeted sponsorship. The company has also signed agreements for music distribution and brand/product licensing to expand revenue streams without direct, full investment in production and event organization. DatVietVAC, originally a media company founded in 1994, transitioned to a holdings model in 2019, incorporating various subsidiaries like Vie Channel, VieON, Dong Tay Promotion, and DatVietOOH. The company is currently focusing on producing and commercializing original intellectual property (IP) to directly increase user-generated revenue. Original IP refers to unique creations such as characters, storylines, films, games, shows, and other identifying elements developed by the company or individuals and legally protected. This represents a relatively new business model in Vietnam. DatVietVAC is in the process of offering 11.15 million shares to the public for the first time, with an offering price of VND54,800 per share. According to the management, the company's P/E valuation is 13 times, which is 28% lower than the average for entertainment companies in the region. If the offering is successful, the company's charter capital will increase to VND1.114 trillion. At the offering price, the company's market capitalization upon listing on the stock exchange could reach VND6.1 trillion, or over $230 million. As of the end of the second quarter, DatVietVAC's total assets amounted to nearly VND2.2 trillion, with over half of this amount in time deposits at banks.