Aug 23, 2018 / 14:00

Vietnam leading telecom group VNPT posts 15% increase in profit in Jan-Jun

The Hanoitimes - VNPT sets revenue and pre-tax profit targets of VND43 trillion (US$1.86 billion) and VND5.76 trillion (US$246.8 million) in 2018.

Vietnam Posts and Telecommunications Group (VNPT), one of Vietnam's top three telecom groups, posted a 15% increase year-on-year in pre-tax profit to VND3.19 trillion (US$136.65 million) in the first six months of 2018, VietnamFinance reported. 
Illustrative photo.
Illustrative photo.
VNPT's revenue in the January - June period reached VND25.49 trillion (US$1.09 billion), down 3.4% year-on-year, of which, revenue from financial activities was reported at VND1.07 trillion (US$45.83 million), up 91% year-on-year. 

During this period, the telco reported VND82.7 billion (US$3.54 million) in financial expenses, down 18.4% year-on-year, sales and administrative expenses of VND2 trillion (US$85.68 million) and VND2.8 trillion (US$119.96 million), up 73% and 23%, respectively. 

By the end of June 30, VNPT's total assets decreased 1.8% compared to the beginning of the year to VND93.94 trillion (US$4.02 billion), of which, the majority was fixed assets with VND36.5 trillion (US$1.56 billion) and short-term financial investment of VND34.85 trillion (US$1.49 billion). 

Additionally, the group's equity as of June 30 reached VND65.47 trillion (US$2.8 billion), up 1.2% compared to the beginning of the year. 

VNPT's payables amounted to VND28.46 trillion (US$1.21 billion), of which short-term loans accounted for 95% of the total amount. 

VNPT sets revenue target at VND43 trillion (US$1.86 billion) this year while its pre-tax profit is set at VND5.76 trillion (US$246.8 million), up nearly 15% year-on-year. 

According to the Ministry of Information and Communications (MIC), the Vietnamese telco is expected to complete its equitization process in 2019 and establish VNPT Global under the group's direct management to invest abroad. 

Under the equitization scheme, the government will retain 65% holding in VNPT, while the remaining 35% will be offered to investors.