Media company Yeah1 reported a post-tax loss of VND151 billion ($6.55 million) last year, its second straight year of losses, as it developed a new business.
Amid the Covid-19 pandemic the company, one of the largest digital media ecosystems in Vietnam, decided to set up a new multi-channel trading platform, Giga1, which seeks to cut out intermediaries and deliver goods directly from manufacturers to customers.
“In 2020, we spent a lot of resources on this ecosystem of consumption and retail, which led to higher spending and affected the company’s profits,” Nguyen Dang Quynh Anh, deputy director of Yeah1, said.
Revenues fell by 16 percent last year to VND1.22 trillion. In March, its contract with YouTube was terminated due to a violation of policies.
It began as an operational error but later “turned into a real crisis for the company,” chairman Nguyen Anh Nhuong Tong said.