Yeah1 Group’s (code: YEG) after-tax profit was revised downward by 10 per cent after the audit as it poured all its reserve funds into Springme and buying treasury stocks.
The group has just sent a document to the State Securities Commission of Vietnam (SSC) detailing its 2018 after-tax profit before and after audit. Accordingly, after auditing, the company’s profit stood at VND163 billion ($7 million), down 9.4 per cent. After 13 rounds of falling price on stock market, YEG price on March 20 reached VND95,700 ($4.16), down by 61 per cent against before occurring the accident with YouTube. In addition to pouring its reserve funds into Springme, its buying back 600,000 treasury stocks may be the reason behind Yeah1’s decreasing profit. Previously, aiming to calm down shareholders, chairman Nguyen Anh Nhuong Tong and deputy general financial director Vo Thai Phong registered to buy 150,000 YEG stocks.
Despite this, Yeah1’s profit in 2018 still grew by 98.2 per cent against 2017. The group’s representative explained it has enhanced mergers and acquisitions activities with other firms and expanded in several business segments.
However, the firm is at risk of losing major profit in 2019 if it cannot reach a new agreement with YouTube. An expert stated that once Yeah1 loses its CHSA with YouTube, its subsidiaries Yeah1 Network, ScaleLab, and Springme will no longer be a part of YouTube’s multi-channel network and be managed by it. Thus, Yeah1 will lose all revenue from YouTube, which accounted for 28 per cent of its revenue in 2018.