The war on survival "land" TV entertainment – seen from YanTV and Yeah1


At the same age as about 10 years old, while YanTV has just announced its closure at the beginning of the second quarter, Yeah1 announced that it will soon be listed on the HOSE in 2018, even aiming for the listed market in the future.

Fatty cake but not for everyone!

Nowadays, people’s lives have been improved, leading to the need for entertainment not only being focused but forecast is increasing. As a result, television and entertainment business has become a relatively dynamic field to meet the needs of most readers, especially young people. In fact, Vietnam currently has many traditional TV channels with a variety of shows such as movies, music, fashion, shopping … Not only that, television via the Internet is also on the rise. in the context of an increasingly booming industrial revolution, many investors soon grasping the trend have spent heavily on this segment.

The lucrative market pie is, but the game is not for everyone; When recently, a popular youth TV channel – YanTV – officially broke up after 10 years of broadcasting. Just a few days later, the unit in the same industry, Yeah1, again planned to list on the floor to attract strong capital, bring its name to the public. Even, a representative of Yeah1 also said that it has been and will bring the company to overseas markets, where the media and entertainment industry is valued at a pretty high PE, reaching 50-80 times. A related name, also VTVcab, has just approved the IPO plan with the starting price up to 140,900 VND / share.

Logo VTVcab, Yeah1 and YanTV.

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YanTV dies because of lack of identity, lack of capital or both?

Talking about YanTV, in early April 2018 when the official information about stopping production on television was announced, many young audiences went from surprise to regret. Because, YanTV used to be a special TV channel for teenagers who left a lot of achievements and stuck together throughout their journey.

Officially launched on June 16, 2009, with the main broadcast content of music (60%), entertainment (40%), YanTV quickly resonated and was well received by the majority of readers. During 10 years of operation, YanTV has served many attractive programs such as: Yan Around, Rock on Yan, Yan Live, Yan Vpop 20, Only Yan, Red Chair, We 10 …

To the artists world, YanTV is not only the golden cradle “blowing away” many names, but also a “family” where many celebrities gather here. Through YanTV, many young faces like Quang Bao, MLee, Si Thanh, Ngoc Trai… are known and loved by young people. In addition, YanTV was also participated by many famous artists such as: Isaac 365, Gil Le, Ngoc Trai, Kim Nha, Si Thanh … also took on the role of VJ and was loved by the audience.

Currently, replacing YanTV is a completely new TV channel called UNI Channel specializing in broadcasting copyrighted music.

Isaac and Gil Le lead a YanTV program.

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Regarding the cause of the failure, most newspapers believe it is due YanTV no longer resonates or attracts young people. Moreover, this conclusion is also predicted by many people before recently, the programs of this station have also stopped producing, only broadcast some foreign music programs in moderation before being replaced from SCTV cable TV system.

According to a male VJ, he was not surprised by this incident, because he knew half a month ago, at the same time. rumors of YanTV’s closure also leaked 2 years ago. At that time, many artists began to be disappointed and decided to end the contract to work at YanTV.

On the other hand, from an investment perspective, sYanTV’s inferiority comes from the lack of capital, when the cost of buying waves is extremely expensive, the corresponding production costs are high but the rating is too low.. It is not denied that YanTV still has some impressive programs, but it is understandable that “how to support a TV channel to live, being closed is understandable”. One reader also commented on YanTV’s failure as follows:

Agreeing with the view that the cost of traditional TV channels is not cheap, the representative of Yeah1 said that this is also the reason why the whole industry is changing, in which Internet channels are strongly developed and the coverage is gradually reduced. traditional channel.

“The traditional channel cannot be said to go down, because it has some irreplaceable meaning. Therefore, it can only be used from the television industry which is transitioning to the Internet channel, besides the solid foundation of the channel. system “, this person added.

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Yeah1 will promote the Internet segment, plans to contribute 75% of 2018 revenue

Therefore, Yeah1 is being operated with the policy of following the direction of the market, which means thriving in Internet channel; however, the Company will still maintain its existing market share in traditional channels. By the end of 2018, Yeah1 targets net revenue of 1,600 billion VND, up 90% compared to 2017. Of which, 25% of the revenue will come from the traditional Media segment, the remaining 75% will be contributed from the Internet with 25% Youtube channel and 50% belong to a fairly new system of the Group – Non-Youtube segment.

Regarding Non-Youte, this channel allows advertising on both Website, App and Gameonline, which was officially invested by the Group in 2017 through the acquisition of 76% stake in Netlink Company. This is the Company’s long-term business strategy to follow the general trend of developing Internet communication channels, gradually reducing traditional channels to optimize operating costs.

Along with that, the Company will also invest heavily in the Digital system, planning to spend 70-80% of the additional capital in 2018 on this segment, aiming to bring back the main source of profits in the future. Even, Yeah1 has “ambition” to bring this segment to be listed abroad in about 2 years. Because, Digital is being evaluated with great potential in the foreign playground, especially on the Thai stock exchange, Yeah1 equivalent companies are priced at a very high P / E of over 50 times, even 80 times. .

Inadequacies from the cash flow

Not stopping at the high operating costs of television channels, another shortcoming to the business in this field is the capital appropriation situation. That means that revenue is recognized, but in fact, the Company usually only recognizes the receivable items, leading to the extremely low cash flow on the report, disproportionate to the annual revenue.

Typically at Yeah1, 2017 revenue of the Company recorded a sudden increase to 851.6 billion, the corresponding after-tax profit increased more than 5 times to 82 billion, this result is due to boosting production activities. Business includes mergers and acquisitions. However, along with the business targets are the receivable and inventory figures also increasing accordingly.

As of December 31, 2017, Yeah 1 recorded a significant increase in short-term assets to 435.6 billion, of which cash was only 42 billion dong, inventories nearly doubled – 75 billion. Not to mention, the momentum of short-term assets mainly came from short-term receivables with the proportion of 57% and an increase of more than 41% to VND 249 billion. On the other hand, long-term assets increased sharply to 222 billion VND, mostly from a nearly 4-fold increase in long-term receivables, along with that Yeah1 recorded a goodwill of 109 billion from 3 M&A deals in the year. 2017.

Synthesized from Yeah1 Financial Statements 2017.

As can be seen, Yeah1, despite recording growth, is in fact being occupied quite a large amount of capital. Answering this issue, the representative of the Company said that this is not too strange for the contract characteristics in the television field. And in order to balance operating capital, the Company, besides using receivables to secure loans, also strengthens the attraction of external investment capital and a number of other tasks to turn cash flow.

It is known that not all units can do well, many names have failed due to the lack of funds.

Another interesting content, Yeah1 plans to proceed with the registration and listing on HOSE, the expected time is June-August 2018. At the same time, to attract more investment capital, Yeah1 will proceed to increase the foreign ownership rate to 100%.

All in all, the local media growth is there, but the game is not for everyone. The story of YanTV when he was once “dead” could have been a warning to the rest of the insiders?

Bao An
* Source: Young intellectuals

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