Yeah1 Group (YEG) Forecasts 36% Profit Growth Despite Revenue Dip

Overview

At its annual shareholder meeting, Yeah1 Group (YEG) addressed concerns over a 35% profit decline in 2025 despite achieving record revenue of VND 1,653 billion. Chairman Lê Phương Thảo attributed the margin compression to strategic investments in digital platforms Mango+ and 1Creators, while forecasting a 36% profit rebound for 2026. This highlights the company’s pivot toward platform-based growth amid competitive pressures in Vietnam’s media and entertainment sector.

Key Facts

• 2025 revenue reached VND 1,653 billion, the highest in seven years, but net profit fell approximately 35% to over VND 80 billion.
• Net profit margin was just over 4.8% for 2025.
• The company forecasts 2026 consolidated revenue of VND 1,650 billion, a slight 0.2% decrease year-over-year.
• 2026 net profit after tax is projected at VND 105 billion, representing 36% growth.
• Strategic investments focused on the Mango+ streaming platform, the 1Creators platform, and concert infrastructure including LED screens and sound systems.
• The company reported eight sold-out concerts in 2025, with the year-end Y-Concert selling approximately 60,000 tickets.
• Growth drivers for 2026 include new seasons of shows “Anh trai vượt ngàn chông gai” and “Gia đình Haha,” artist management, and digital banking services through 1Creators.

What Happened

During the annual shareholder meeting, Yeah1 Group (YEG) faced pointed questions about its financial health, particularly why 2025 profits declined sharply despite record revenue. In response, Chairman Lê Phương Thảo explained that the profit contraction resulted from increased costs associated with strategic investments in building sustainable platforms. She specifically cited resources allocated to the core systems of the Mango+ streaming application and the 1Creators platform, alongside concert infrastructure upgrades. Thảo emphasized that these investments aim to create market differentiation and establish a “new standard” for the entertainment industry, ultimately benefiting audiences.

Thảo explicitly rejected the characterization that the company was “buying revenue”—a term describing businesses that achieve high revenue through excessive cost outlays, resulting in minimal profit. She pointed to the commercial success of the company’s concert business, noting that all eight concerts in 2025 were sold out, with the Y-Concert alone selling approximately 60,000 tickets. For 2026, management expects cost reductions from these platform investments to drive profitability, projecting net profit of VND 105 billion despite a slight revenue decline.

Market Context

Yeah1 Group (YEG) trades on the HOSE exchange in the media and entertainment sector. The stock closed at VND 10 on April 10, 2026, up 3.50% on volume of 2.23 million shares. This positive price action occurred alongside the shareholder meeting where management provided forward guidance, suggesting investor optimism about the 2026 profit recovery thesis. The company’s strategic shift comes amid evolving consumer preferences in Vietnam’s digital entertainment landscape.

Strategic Significance

The news underscores Yeah1’s deliberate transition from a traditional media producer to a platform-centric operator. By investing in Mango+ and 1Creators, the company aims to build recurring revenue streams and reduce dependency on one-off events. The planned expansion of 1Creators into digital banking services represents a diversification into adjacent fintech verticals, potentially creating higher-margin opportunities. This strategic pivot addresses long-standing investor concerns about margin sustainability in the competitive entertainment sector.

What to Watch

• Q2 2026 earnings release to validate the projected cost reductions and profit improvement.
• User growth metrics and monetization updates for the Mango+ and 1Creators platforms.
• Execution of the 1Creators digital banking partnership with banks, including product launch timelines.
• Ticket sales and margin performance for the 2026 concert series.
• Any updates on foreign ownership limits or capital-raising activities to fund further platform investments.