Tech unicorn VNG braces for $24 mln loss in 2023

Vietnamese tech giant VNG Corporation has targeted revenue of VND9.28 trillion ($394.5 million) and a loss of VND572 billion ($24.3 million) in 2023.

VNG's management said that this year, it will continue to invest in key business segments such as video games, advertising, e-wallets and especially products that use artificial intelligence. Therefore, it has proposed not to pay dividends from the accumulated profit of more than VND5 trillion ($212.5 million) it held as of the end of last year.

VNG has reported a loss of VND90 billion ($3.84 million) in the first quarter of this year, while in the same period last year it lost VND130 billion ($5.54 million). VNG's net revenue reached VND1.85 trillion ($78.93 million), up 11% year-on-year, according to the company's consolidated Q1 financial statement.

As of March 31, 2023, VNG's total assets had stood at VND8.98 trillion ($382.48 million), up 0.8% compared to the beginning of the year, of which liabilities increased by 4% to VND3.95 trillion ($168.46 million).

VNG Corporation posted a loss of VND1.53 trillion ($65.4 million) in 2022, up VND219 billion ($9.33 million) compared to the figure reported prior to auditing.

The company, registered on the unlisted public company market UPCoM as VNZ, explained that the loss was due to the fact that it recorded additional expenses related to taxes, intangible fixed assets, and provisions for financial investments.

It was the fourth largest loss reported by a listed company in Vietnam in 2022, after Vietnam Airlines, Vietjet, and HAGL Agrico.

The corporation's net revenue reached VND7.8 trillion ($332.2 million) in 2022, up 2% year-on-year.

Founded in 2004 by Vietnamese businessman Le Hong Minh, 45 now, VNG is a leading technology services provider in Vietnam. It was officially valued at $1 billion in the World Startup Report, becoming the first unicorn in Vietnam.

The corporation in January named Vo Sy Nhan as its new chairman, replacing Le Hong Minh. Minh remains as general director of VNG.

According to its information disclosure, as of November 28, 2022, VNG had three major shareholders: VNG Limited, headquartered in the Cayman Islands, holding 49% of charter capital or 61.1% of outstanding shares; BigV Technology Corporation with a 4.6% stake and accounting for 5.7% of outstanding shares; and Le Hong Minh, who owns a 9.8% stake and 12.3% of outstanding shares.

On the UpCOM, VNZ shares closed Friday's session at VND755,000 ($32.09).