HONG KONG, Aug. 13, 2021 /PRNewswire/ -- Recently, many products from developer Newborn Town Inc. [9911.HK] have topped charts for the most downloaded and best-selling social networking apps in Europe and America. The largest social networking company in China exclusively targeting the global market, the firm focuses on creating unique audio and video experiences that expand what's possible with social networking apps.
Newborn Town has a broad portfolio of social networking products, including video social apps, live streaming app MICO and voice social app YoHo. It has over 200 million social users in more than 150 countries and regions, becoming a well-known name in emerging markets like the Middle East, Southeast Asia and South Asia. It has also made recent breakthroughs in developed markets such as Europe, America, Japan, and South Korea. Several of its products rank on the Top 10 most downloaded or highest grossing social networking apps in North America and Europe.
The company's apps feature distinct audio and video features, which include video matching, one-to-one video chat, video live-streaming, and voice-chat rooms. The goal: To give users a feeling of real, meaningful social interaction.
Newborn Town Inc. began their audio and video social business from 2016, becoming an early-mover in this vertical. With early insight into the global mobile internet changes in users' social entertainment habits, the company has since made several well-placed strategic bets to drive growth.
First of all, mobile internet technology will continue to evolve with the global popularity of 5G being unstoppable. The improvement of network speed and bandwidth will spark a mobile end product revolution at the technical level. Just a few years ago, the evolution of the 3G network to 4G network gave birth to an array of new forms of applications, making real-time navigation, mobile payment and other functions a reality. This came with dramatic changes to users' daily lives.
With a focus on social entertainment, apps like TikTok and PUBG Mobile, which allow users to pick up their phones anytime and anywhere to watch short videos and play mobile games, swept the globe and became a gathering point for online users.
As 4G upgrades to 5G, audio and video signals will be transmitted more smoothly and at a higher speed. Lengthy audio and video viewing and calls on mobile devices will no longer be limited, providing a solid technical foundation for audio and video to become the primary form of communication.
Secondly, the kind of entertainment that people want is changing. As the pace of life quickens, fragmented entertainment serves people's daily needs better. The pursuit of convenience and efficiency makes audio and video social networking more appealing.
Meanwhile, Gen Z has become the core of internet users. Compared with the previous generation, these young users are more open-minded, have a stronger desire for expression, and seek feelings of excitement. Audio and video social networking products are uniquely positioned to cater to this group, allowing them to build online spaces to express themselves and be social in real-time.
Focusing on these trends, Newborn Town Inc. has rolled out several social networking products featuring audio and video, which have already gained traction worldwide. Traditional social giants are finally taking notice of audio and video-based interaction as well. Match Group, Tinder's parent company, recently released its Q2 financial report, announcing that over the next 12 to 24 months, it will introduce audio and video chat to some of its products, including group videos and other live streaming functions. And Hyperconnect, which Match Group acquired, will support the plan's rollout. The audio and video social networking revolution is well underway.
Being ahead of the curve on audio and video social networking has proved highly profitable for Newborn Town. The company recently announced its profit alert, with revenue in the first half of 2021 expected to reach RMB1.02 to 1.05 billion, up over 570% year-on-year. Net profit in the same period is expected to be RMB120 to 150 million, up over 34 times year-on-year. In the future, Newborn Town plans to continue expanding its global social networking business, launching more high-quality social networking products featuring audio and video, and providing rich and diverse online social spaces for users all over the world.