SINGAPORE - Social media and e-commerce platform network company YuuZoo announced on Tuesday that it is expected to earn $33.4 million in profit from the sale of licences to new franchisees.
The mainboard-listed company said the estimated profit was at February this year and was based on a valuation by a "big four" audit firm. Subject to auditor approval, Revenues and profits from the sale will be included in YuuZoo's accounts when the franchisees commence operations. An independent re-valuation will thereafter be conducted at the end of each year.
YuuZoo said it signed new franchise agreements that cover 59 countries across Asia, Europe and Africa. These include agreements announced earlier for South Korea and Turkey, as well as new agreements in other fast-growing markets such as Poland, South Africa and Kenya.
The new franchisees are committed to collectively register a minimum of 5.7 million new users within a year from launch and 40 million users within three years. Citing market research, YuuZoo estimates that 5.7 million active users would generate a topline revenue of $1.2 billion annually.