Tech unicorn VNG reports $2.1 mln Q2 profit after prolonged losses

Vietnamese tech giant VNG Corporation reported after-tax profit of VND50.2 billion ($2.1 million) in the second quarter of this year, its first profit since the fourth quarter of 2021.

VNG's net revenue reached nearly VND2.25 trillion ($94.6 million), up 12.4% year-on-year, according to the company's consolidated Q2 financial statement.

The company's profit from joint ventures and associates continued to record a loss of VND22.14 billion ($932,600), while in the same period last year it made a loss of VND47.34 billion ($1.99 million).

In the first six months of the year, VNG, registered on the unlisted public company market UPCoM as VNZ, posted net revenue of VND4.1 trillion ($172.6 million), up 11.9%, and after-tax profit of VND39.9 billion ($1.68 million).

As of June 30, 2023, the company had recorded accumulated losses at its joint ventures and associates of VND751.3 billion ($31.6 million), mainly from Tiki Global with a loss of VND510.1 billion ($21.5 million).

As of June 30, VNG's total assets stood at VND9.57 trillion ($403 million), up 7.5% compared to the beginning of the year. Of which, cash and cash equivalents were VND3.46 trillion ($145.5 million), up 31%, and fixed-assets hit VND2.27 trillion ($95.7 million), up 89%.

VNG 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.

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.

On the UpCOM, VNZ shares closed Wednesday's session at VND700,000 ($29.5).