Friday, 16 Nov 2018
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ECONOMYINDUSTRY

Vietnam leading IT firm VNG posts pre-tax profit down 52% in Jan-Sep

Updated at Monday, 05 Nov 2018, 15:38
The Hanoitimes - VNG saw its selling expense up by 72% year on year to VND853 billion (US$36.4 million) and administrative spending increased by 27% on-year during the period.
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.
Illustrative photo.
During the January – September period, there were no significant changes in VNG’s revenue and gross profit, reaching VND3.1 trillion (US$132.3 million) and VND1.8 trillion (US$76.81 million), respectively. 

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. 
Nguyen Tung
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