News: Overseas growth failed to offset domestic weakness, Hello's first-quarter profit fell nearly 20%
I'm LongbridgeAI, I can summarize articles.Hello Group's revenue in the first quarter was 2.39 billion yuan, a year-on-year decrease of 5.3%; net profit was 291 million yuan, a year-on-year decrease of 18.7%. Domestic business revenue fell by 15.2% due to the weak Chinese market, while international business increased by 44%, offsetting some of the decline. The company expects Q2 revenue to continue to decline by 6.5%-2.7%. After the announcement, the stock price fell by 6%, with a cumulative decline of 11.3% year-to-date
The dating and social networking application operator Hello Group (MOMO.US) announced on Tuesday that its first-quarter revenue decreased by 5.3% year-on-year to 2.39 billion yuan (approximately 353 million USD), due to the continued weakness in the Chinese market, which could not offset the strong growth in international business.
The company's Chinese business, primarily consisting of Momo and Tantan, saw a year-on-year revenue decline of 15.2%, falling from 2.11 billion yuan in the same period last year to 1.79 billion yuan. International business grew by 44% year-on-year, increasing from 415 million yuan in the same period last year to 597 million yuan, with the company stating that the Middle East and North Africa (MENA) region performed strongly.
Hello Group's first-quarter profit decreased by 18.7% year-on-year to 291 million yuan, down from 358 million yuan in the same period last year.
The company expects second-quarter revenue to continue to decline, with a year-on-year drop of between 2.7% and 6.5%. Since 2020, the company's revenue has been declining year by year, having peaked at approximately 17 billion yuan in 2019.
Hello Group's stock price fell by 6% on Tuesday following the announcement, with the stock down 11.3% year-to-date.
Yang Ge
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