Saturday, 16 Feb 2019

Viettel Global suffers loss of nearly US$4.7 million in Q1

Updated at Friday, 06 Jul 2018, 09:28
The Hanoitimes - High corporate tax rate led to Viettel Global`s continuing loss.
Viettel Global, the international investment arm of the military-run Viettel Group, posted a after-tax loss of VND107 billion (US$4.66 million) in the first quarter this year, after the deduction of both current and deferred corporate taxes, according to the company's quarterly financial statement.
Illustration photo.
Illustration photo.
As of March 31, Viettel Global's pre-tax profit stood at VND13.9 billion (US$605,345), a significant improvement from the loss of VND139 billion (US$6.05 million) that the company suffered at the same period last year.
Corporate tax totaling VND121 billion (US$5.26 million) caused the company to post a loss of VND107 billion (US$4.66 million) in the period. 
During this six-month period, the company's revenue reached VND3.94 trillion (US$171.5 million), slightly down 2.2% year-on-year, while the company's gross profit increased by 42% to VND904 billion (US$39.3 million). 
At present, Viettel Global is subject to corporate tax rate of 20%, while the rate varies among its subsidiaries, in particular Viettel Cameroon with a tax rate reaching 33%.
In the January – March period, income from financial activities jumped by four times against the same period of last year to VND550 billion (US$23.9 million), mainly thanks to change in interest rates. With a similar reason, financial expenses saw a sharp increase, up 2.3 times to VND581 billion (US$25.3 million).
Meanwhile, sales expenses stayed around the same year-on-year at VND369 billion (US$16 million) and administrative expenses increased by 36% to VND584 billion (US$25.4 million). 
Recently, Viettel Global has fixed the list of shareholders as a basis to register its shares with the Vietnam Securities Depository (VSD), with the view of listing shares on the Unlisted Public Company Market (UPCoM), according to the Bao Viet Securities Company (BVSC). The registered amount is 2.24 billion shares, corresponding to charter capital of VND22.43 trillion (US$972.3 million).  
Viettel Global's total assets by the end of the first quarter reached VND51.6 trillion (US$2.24 billion), down 0.54% compared to the beginning of the year, of which the majority are receivables (both short- and long-term) at VND19.1 trillion (US$831.8 million) and fixed assets of VND14.5 trillion (US$631.4 million). 
Its equity in the first quarter was reported at VND18.3 trillion (US$797 million) and accumulated loss of nearly VND3.6 trillion (US$156.7 million), while payables slightly decreased by 0.5% to VND33.3 trillion (US$1.45 billion). 
Viettel currently is the only Vietnamese companies having revenue of over US$1 billion in overseas markets. It has some 43 million clients in foreign markets as of the end of 2017, up 15% year-on-year.
The telco is operating in 11 countries, including Vietnam, Cambodia, Laos, Timor East, Peru, Mozambique, Cameroon, Burundi, Tanzania, Myanmar and Haiti.
In 2018, Viettel targeted a positive profit in overseas investments with a growth rate of 32% compared to 2017, while expanding its customer base in foreign markets to 50 million. 
Ngoc Thuy
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