Yeah1's Profit Halved Amidst Concert Revenue Shortfall, Investment in New IPs Cited

Yeah1 Group (YEG), a prominent Vietnamese media conglomerate, has reported a significant decline in its financial performance for the second quarter (April-June). Consolidated revenue stood at over VND 311 billion, marking a decrease of more than 32% compared to the same period last year. The company's after-tax profit for the quarter was approximately VND 15.6 billion, a sharp drop of nearly 57%. Company leadership attributed the primary reason for this downturn to the insufficient contribution from concert revenue. Simultaneously, Yeah1 is in the initial stages of investing in and developing several new television programs and high-quality entertainment intellectual properties (IPs). In the second quarter, Yeah1 hosted only one concert in late April in Hung Yen province, which attracted around 50,000 spectators. Following this, the company proceeded with filming the next seasons for two of its popular shows: "Anh trai vượt ngàn chông gai" (Brothers Overcoming a Thousand Obstacles) and "Quán nhà Haha." The shortfall in concert income has also impacted the company's performance for the first half of the year. Over the six-month period, revenue reached over VND 519 billion, and after-tax profit was more than VND 30 billion, representing decreases of over 23% and nearly 49%, respectively, compared to the first half of the previous year. The company has only achieved approximately 32% of its annual revenue target and 29% of its profit target for the year. Yeah1 Group is one of the few media companies listed on the Ho Chi Minh Stock Exchange (HoSE). Following a period of decline after a YouTube-related incident in 2019, the enterprise pivoted towards producing high-quality television programs, launching "Chị đẹp đạp gió rẽ sóng" (Sisters Riding the Wind and Breaking Waves) and "Anh trai vượt ngàn chông gai." These programs have also been the basis for numerous concerts that have drawn tens of thousands of attendees each night. However, according to Vietcap Securities, a key risk for YEG is its heavy reliance on advertising revenue, which is highly susceptible to fluctuations and intense competition. For the current year, the company has set its sights on increasing profitability by launching new music groups and artists, organizing concerts, selling branded merchandise, and introducing paid entertainment applications.