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Personnel exchange to revert poor performance at Yeah1 (YEG)?
Will the exchange of Yeah1’s high-level personnel manage to turn around its performance after 13 sessions of falling on the stock market in the wake of YouTube’s announcement to terminate working with all its subsidiaries?
Yeah1 Group’s board of directors has just decided to assign Nguyen Ngoc Hung, founder and CEO of Yeah1 Network, and new member Bui Huu Nhat as deputy general director effective March 18.
In addition, the board of directors also appointed Nguyen Van Nam to replace Le Thi Bich Hang as a member of the Internal Control Subcommittee from March 20.
The exchange of personnel is hoped to help Yeah1 overcome the crisis.
After YouTube’s decision to end co-operation with Yeah1, the YEG stock has been falling for 13 out of the last 16 sessions. As of the morning of March 25, YEG was at VND117,000 ($5) per stock, down 58 per cent against the time before YouTube’s announcement.
Previously, aiming to calm down shareholders, Yeah1 bought back 600,000 treasury stocks. In addition, chairman Nguyen Anh Nhuong Tong and deputy general financial director Vo Thai Phong registered to buy 150,000 YEG stocks.
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.
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