Việt Nam News

Tech unicorn VNG to suffer losses for the third year in a row

June 20, 2023 - 10:50

Tech unicorn VNG Joint Stock Company (VNZ) expect to suffer losses for the third year in a row this year with an estimated after-tax loss of about VNĐ572 billion (US$24.3 million).

Headquarters of VNG. In the first quarter of 2023, VNG reported an after-tax loss of more than VNĐ90 billion. — VNA/VNS Photo Đào Tùng

HÀ NỘI — Tech unicorn VNG Joint Stock Company (VNZ) expect to suffer losses for the third year in a row this year with an estimated after-tax loss of about VNĐ572 billion (US$24.3 million).

Revenue is forecast to reach VNĐ9.3 trillion.

In the first quarter of 2023, VNG reported an after-tax loss of more than VNĐ90 billion. Net revenue reached VNĐ1.85 trillion, up 11 per cent over the same period last year. Thus, by the end of the first quarter, VNG has achieved nearly 20 per cent of its revenue target for 2023.

Most of the reason for VNG's loss in the first quarter of 2023 came from the fact that the company is still under pressure of huge operating expenses with VNĐ544 billion in selling expenses and VNĐ337 billion in administrative expenses. However, by the end of March 2023, the company's undistributed profit after tax was up to VNĐ5.05 trillion.

In the future, VNG will continue to develop business lines in the direction of diversifying products and services and expanding markets. In addition to continuing to invest in key products and services such as video games, advertising, media services, data centres and cloud computing, and e-wallets, VNG will also increase investment into products using artificial intelligence (AI) and other new technologies.

According to a published document, VNG said that due to the need to invest in strategic business areas and diversify products and services, the Board of Directors of the company proposed the General Meeting of Shareholders to approve the retention of cash and conduct no dividend payment for 2022.

Previously, in 2022, VNG recorded revenue of about VNĐ7.8 trillion, an after-tax loss of about VNĐ1.31 trillion.

In May, the Hà Nội Stock Exchange (HNX) put VNZ shares into restricted trading since May 25 due to late submission of audited financial statements for 2022, 45 days later than prescribed. VNZ shares is only traded on Fridays. — VNS

Hà Nội honours 36 key industrial products

Economy

CPTPP, UKVFTA to boost UK – Việt Nam trade relations

Economy

EVN signs contract for national grid power supply project for Côn Đảo

Economy

Canada Brand campaign begins

Economy

Bình Dương takes advantage of opportunities from EVFTA, UKVFTA

Economy

New trade policies of the UK Government to ease Việt Nam's exports

More on this story

Economy

Post-pandemic business support policies should focus on efficiency: experts

The proportion of enterprises benefiting from the COVID-19 support policies to the total number of enterprises having access to them was 72 per cent and 76.3 per cent, respectively, said a report.

Economy

Hurdles remain on HCM City's way to yearly growth target

HCM City is facing challenges to realise its yearly growth target of 7.5 per cent, as the rates recorded in the first and second quarters failed to meet expectations.

Economy

Shrimp industry needs solutions to achieve export target this year

In the beginning of June, shrimp selling prices plummeted by about 40 per cent compared to April. Meanwhile, the cost of shrimp seed and feed increased. Those have caused shrimp farmers in the Mekong Delta to suffer heavy losses.

Economy

Credit growth expected to improve in H2 2023

The State Bank of Vietnam (SBV) and relevant ministries are currently implementing a series of solutions with an aim to increase the capital absorption of the economy under the context of low credit growth.

Economy

Deputy PM calls for measures to address credit crunch

By June 8, credit to the economy grew by merely 3.15 per cent year-on-year, far lower than the annual target of around 14 to 15 per cent.

Economy

MoIT plans to launch a transaction assurance system in e-commerce

This is to assist the parties to the transaction using protected online payments.

Economy

Benchmark indices extend losses

The market was also under the pressure of foreign capital outflows as foreign investors were net sellers on HoSE.

Economy

More enterprises exporting goods to China via Móng Cái border gate

According to the head of the border gate management board Trần Bích Ngọc, import-export activities via the border gate stay stable with trade turnover from the beginning of this year to June 15 reaching nearly US$1.5 billion, a year-on-year increase of 8.24 per cent.