DLK Advisory Limited
Newborn Town Reports First-time YoY Revenue Growth on Innovative Business in Q1 2023 as the Gaming Segment Made Smooth Progress

Newborn Town Reports First-time YoY Revenue Growth on Innovative Business in Q1 2023 as the Gaming Segment Made Smooth Progress

Newborn Town Inc.(9911.HK) announced its financial results for the first quarter of 2023 on April 27. The revenue of its social networking business was expected to be approximately RMB 580 million to 600 million, and the monthly active users (MAUs) reached 22.33 million. The innovative business saw growth in revenue as it came approximately RMB 50 million to RMB 70 million, representing an increase of roughly 11.1% to 55.6% over the same period.

It’s reportedly the first time Newborn Town has achieved YoY growth in its innovative business since the disclosure of this segment in the first quarter of 2022. Such revenue growth is mainly attributed to the smooth progress that the gaming division has made. “Mergeland-Alice’s Adventure”, the niche self-developed synthetic mobile game, was officially launched in iOS this February, while the Android version was open to users last June. The monthly revenue of “Mergeland-Alice’s Adventure” has exceeded US$1 million.

According to the announcement, Newborn Town has been actively promoting the consolidation of BlueCity, the social-networking frontrunner in the LGBTQ field, with its related business progressing smoothly and swinging into profit, which will support the further boost of Newborn Town’s profitability and enable BlueCity itself to release growth potential continuously.

Meanwhile, Newborn Town also announced its intention to provide funds to the RSU Trustee and Three D Partners Limited in an aggregate amount of not exceeding HK$30 million to purchase company shares starting from 28 April 2023.

According to the latest announcement, the board of Newborn Town believes that purchasing shares in the present conditions demonstrates the company’s confidence in its business outlook and prospects and would ultimately benefit the company and create value for the shareholders. And also, the board believes that the current financial resources of the company would enable it to implement the share purchase while maintaining a solid financial position.