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Tech unicorn VNG to suffer losses for the third year in a row
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 VND572 billion (US$24.3 million).
Headquarters of VNG. In the first quarter of 2023, VNG reported an after-tax loss of more than VND90 billion. — VNA/VNS Photo Dao Tung
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Revenue is forecast to reach VND9.3 trillion.
In the first quarter of 2023, VNG reported an after-tax loss of more than VND90 billion. Net revenue reached VND1.85 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 VND544 billion in selling expenses and VND337 billion in administrative expenses. However, by the end of March 2023, the company's undistributed profit after tax was up to VND5.05 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 VND7.8 trillion, an after-tax loss of about VND1.31 trillion.
In May, the Ha Noi 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.
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