Vietnam`s leading technology firm VNG posted pre-tax profit in the first nine months of 2018 at nearly VND500 billion (US$21.34 million), down 52% year-on-year, according to the firm’s quarterly consolidated financial statement.
Illustrative photo.
|
Nevertheless, the IT firm saw its selling and administrative expenses increase by 72% and 27% year-on-year during the period at VND853 billion (US$36.4 million) and VND382 billion (US$16.3 million), respectively.
Moreover, losses incurred by its affiliates amounted to VND152 billion (US$6.48 million), doubling the figure recorded in the same period last year.
In the third quarter of 2018, VNG reported revenue of VND1.1 trillion (US$46.93 million) with the gross profit margin of 55%, equivalent to the corresponding period in 2017. However, due to large losses incurred in the period, VNG’s pre-tax profit decreased by 40% year-on-year to VND180 billion (US$7.68 million).
In 2018, VNG set revenue target of VND5 trillion (US$218.7 million), up 17.3% year on year, and aims for an after-tax profit of VND549 billion (US$24 million), significantly lower than the figure of VND938 billion (US$40.01 million) recorded in 2017.
In the coming time, the company will diversify its business lines, prioritizing in four main fields of e-wallet, smart phones development, setting up the company's ecosystem for its products, and e-commerce.
Along with traditional digital content development, VNG will focus its resources on developing new technologies, including artificial intelligence, machine learning, big data, virtual reality, and e-payment.
