“From Near-Bankruptcy to Blockbuster Success: The Story of a Founder’s Risky Bet on ‘Sister’s Beauty’ and ‘Brother’s Courage’

Nearly Two Decades of a Rollercoaster Ride in Business

Founded by Mr. Nguyen Nhuong Anh Tong in 2006, Yeah1 Group started as a website sharing entertainment news for teenagers, attracting 40,000 views and a modest revenue of $150. However, just two years later, its community of users had grown tenfold, and with the launch of Yeah1 TV, the company began to make its mark in the media industry.

In the following near-decade of development, Yeah1 invested in four main pillars: television, online, content, and information technology. This period marked a golden era for the company as these pillars drove significant growth, with consistent increases in revenue and profits.

For instance, in 2013, the company generated 154 billion VND in revenue from its business operations, with a profit of 23 billion VND. By 2017, Yeah1’s revenue had increased more than fivefold to over 840 billion VND, with profits reaching nearly 82 billion VND.

Buoyed by this stable growth over nearly a decade, in 2018, the group listed 27.3 million YEG shares on HoSE, with an initial offering price of 250,000 VND per share. YEG became a “hot” stock, surging 20% on its debut, with market prices touching 350,000 VND per share. In that year, Yeah1’s cumulative revenue and profit for 2018 doubled compared to the previous year, reaching 1,665 billion VND and 180 billion VND, respectively.

However, a significant turning point for the group came in the period from 2019 to 2022, when it incurred losses amounting to hundreds of billions of VND due to the impact of YouTube’s decision to discontinue their partnership and the pandemic.

Specifically, in March 2019, YouTube announced the termination of its content storage agreement with Yeah1 due to Spring Me Pte. Ltd.’s channel selection activities, which were deemed inappropriate. Spring Me Pte. Ltd. is a Thailand-based company indirectly owned by Yeah1, holding a 16.93% stake.

This news caused Yeah1’s stock to plummet through 13 consecutive floor sessions, with prices falling from the 245,000 VND region to 97,500 VND. The company’s chairman at the time had to explain that the stock’s performance was beyond the company’s control and followed market laws.

In 2019, Yeah1’s revenue decreased from 1,677 billion VND in 2018 to 1,542 billion VND, and its profits took a nosedive, turning a loss of over 160 billion VND.

Amid this crisis in business operations, Yeah1 also faced challenges in its upper management.

In mid-2022, Mr. Nguyen Anh Nuong Tong stepped down from the Board of Directors. The company’s founder explained that his decision to sell his entire stake and leave the board was for the good of the company and not a hasty exit due to the falling stock price. In 2022, Yeah1’s revenue reached only 314 billion VND, a threefold decrease compared to 2021, while profits stood at 25 billion VND.

However, there were some positive signs for the company as it ended 2023 on a brighter note. In 2023, Yeah1’s consolidated revenue reached 411 billion VND, a 31% increase compared to the previous year, and achieved 97% of its plan. Yeah1 attributed this improved performance to its advertising business on television and digital platforms. Total revenue from advertising, media consulting on digital platforms, event organizing, sponsorship, and advertising on TV channels exceeded 154 billion VND, an increase of 82.5% over the same period last year.

In the first quarter of 2024, the company’s net revenue reached 73.5 billion VND, a 21.3% increase compared to the same period last year. After-tax profit was recorded at 12 billion VND, triple that of the first quarter of 2023. This marked the second consecutive quarter of double-digit profits for Yeah1, a significant improvement from the previous periods of continuous losses or meager profits.

Going All In on “Chị Đẹp” and “Anh Trai”

Following the changes in its upper management in 2022, Yeah1 embarked on a journey of restructuring and seeking new directions. In 2023, the company produced the television program “Chị Đẹp Đạp Gió Rẽ Sóng” (Chị Đẹp Rides the Wind and Parts the Waves), a Vietnamese adaptation of the popular Chinese show “Sister, Please Slow Down.” The program featured female celebrities over 30 years old.

All 15 episodes of “Chị Đẹp Đạp Gió Rẽ Sóng” surpassed one million views, with many performances by the female artists trending on YouTube. The show’s content also sparked lively discussions on social media and across various media outlets.

During the annual general meeting of Yeah1 (YEG) shareholders held in early May, Ms. Ngo Thi Van Hanh, CEO of Yeah1, shared the company’s orientation towards producing television programs with significant investments, or “producing high-quality content,” as one of its main business areas.

Thanks to its focus on producing and exploiting high-quality content, this segment generated a revenue of 168 billion VND, accounting for the highest proportion (41%) of the company’s total revenue in 2023, as revealed by the CEO.

Riding on the success of “Chị Đẹp Đạp Gió Rẽ Sóng,” Yeah1 is planning for a second season of the show in 2024 and introducing a new program, “Anh Trai Vượt Ngàn Chông Gai” (Brother Overcoming Thousands of Obstacles), a television show for male celebrities over 30 years old. The first two episodes of “Anh Trai Vượt Ngàn Chông Gai” have already seen strong engagement, with many performances trending on YouTube and generating buzz on social media.

For 2024, Yeah1 has set a revenue target of 800-1,100 billion VND and an after-tax profit of 65-105 billion VND, corresponding to cautious and favorable scenarios.