Son Tung M-TP as a successful entrepreneur: Only 3 billion capital, 51 billion of net profit in 3 years

However, the ambition to establish an entertainment corporation of A star – Son Tung MTP still encounters different challenges as to the influence from Covid-19 pandemic.

In these days, Skys count down for the releasing day of the musical documentary “Son Tung M-TP: Sky Tour Movie” streaming on Netflix in early September, 2020. The movie not only tells a story about this young talented singer’s musical journey, but also reveals many aspects of the V-pop star and his shows.

In early June, Sky Tour Movie has already established a tough-to-beat record: 10,000 tickets sold out in just two days. Turnover is estimated to reach 11.5 billion after 10 days of release. These are impressive numbers for a Vietnamese movie, especially with the label of documentary genre.

Son Tung M-TP, also known as President Nguyen Thanh Tung of M-TP Entertainment, is one of the most successful Vietnamese singers of his generation, owning a huge fan base. Tung’s reputation is not only well-known in the Vietnam music market but also in SouthEast Asia and Asia region as well.

Facebook fanpage M-TP with 10.8 million likes, 5.4 million followers on Instagram, 7.7 million on Youtube proves the popularity of Son Tung M-TP in every social platform. More surprisingly, the growth rate of the fan base is expanding over time.

According to Influencer Discovery, Sky fans are from mainly in big cities such as Hanoi, Ho Chi Minh city, Da Nang. The average age group ranging from 13 to 25, is the new consumer generation  of Vietnam. Another notable point is that 2/3 of Son Tung M-TP’s fans are female.

   

  

Source: CafeF

President Nguyen Thanh Tung always makes a great impression in his works with music talent, good looking appearance and successful communication campaigns. His music video debuted on Youtube quickly climbed on top trending for a long time, achieving incredible views. Most recently, “Có chắc yêu là đây” (Isn’t this love), reached 95 million views in less than two months.

All things mentioned above only partly reflect the strong influence of the A star. Skys follow Tung in every single step and can even do what Tung does. That explains why the young male singer became a target celebrity for big brands to apply marketing influencer tactics, especially when their products focus on the youth segment.

In addition to music activities, the income of singers also comes from advertising contracts. For Son Tung M-TP, the honorarium will certainly be among the highest levels in Vietnam.

Son Tung M-TP manages business activities on behalf of M-TP Entertainment. Frankly speaking, before 2020, Nguyen Thanh Tung is M-TP Entertainment and vice versa.

Our data on M-TP Entertainment’s business performance show an impressive figure. Early established in 2016, M-TP Entertainment quickly achieved a turnover of around 40 billion VND, profit after tax from 15-20 billion VND in the following years. The remarkable point is all about the gross profit margin, reaching 75% in 2017 and increasing to 97% in 2018 and 2019. With only 3 billion VND of initial capital contribution, M-TP Entertainment earned 51 billion VND EAT in just 3 years.

Source: CafeF

However, Tung’s ambition is beyond that. In late 2019, M-TP Entertainment held a press conference officially announcing the strategy of turning this company into an entertainment corporation. “M-TP is no longer me, M-TP is us,” said the businessman born in 1994.

Specifically, M-TP Entertainment will create an ecosystem consisting of M-TP & Friends, M-TP Talent, and Music Agency. Tung’s 2020 plan marks several business diversification moves for the pop star, including a new social network, a new coffee shop and a new fashion brand.

However, the initial financial situation of M-TP & Friends and M-TP Talent was not as positive as M-TP Entertainment. In 2018, M-TP Talent reported a loss of nearly 10 billion VND and M-TP Friends also lost 2 billion VND last year.

Within 3 years, M-TP Entertainment will be in search of talented artists to Tung’s team, develop as a representative company receiving direct contracts as well as developing brands for artists. The very first names could be mentioned as singer Kay Tran, producer Onionn, show director Long Halo, art director Ben Pham.

On the one hand, president Nguyen Thanh Tung shared that M-TP Entertainment will look for potential startups to invest in and consolidate the ecosystem. Like last year, the company completed the Luxstay deal. On the other hand, the company will receive selective investment capital.

Unfortunately, the COVID-19 epidemic affected most areas of the economy, in which entertainment also suffered heavy losses. The cancellation in public activities under the restriction of the Government and social distancing will probably affect M-TP Entertainment’s plans, especially the Sky tour.

However, in the context of pandemic, Tung and his team need to show the improvisation skills in time. “Youth, enthusiasm and passion” is what Son Tung always mentioned when talking about M-TP Entertainment. This can be the guideline of the businessman in the way to move further in his career.

Original Article: https://cafef.vn/kinh-doanh-gioi-nhu-son-tung-m-tp-chi-voi-3-ty-von-thu-ve-51-ty-lai-rong-sau-3-nam-20200831012218138.chn

 

Leave a Reply

Your email address will not be published.