VNG data centre in HCM city. — Photo courtesy of the company

HÀ NỘI — Despite improvement in business operations, VNG Corporation still reported losses for the tenth consecutive quarter in the first quarter of the year.

In its quarterly financial report, the company's net revenue was nearly VNĐ2.3 trillion (US$89 million), up 22 per cent from the same period last year. This is the second-highest revenue quarter of VNG's history, second only to the third quarter of 2023.

The Việt Nam's first tech unicorn said that the significant growth primarily came from online gaming services. While the net revenue saw strong gain, the cost of goods sold increased even more. As a result, VNG's gross profit only increased by 4 per cent to VNĐ884 billion.

Thanks to cost-cutting measures, selling expenses decreased by 11 per cent, equivalent to VNĐ59 billion, and management expenses also dropped by 11 per cent, equal to VNĐ36 billion.

VNG reported a profit before tax of VNĐ65 billion, but after deducting taxes, it ended up with a loss after tax of VNĐ31.4 billion.

It experienced a significant increase of 150 per cent in short-term loans in the first three months of the year to VNĐ1.33 trillion, while long-term loans declined by 7 per cent to VNĐ577 billion. Consequently, VNG's total debt increased by 38 per cent from the start of the year. — VNS