Telecom giant VNPT profit drops 12% in 2021

The state-owned Vietnam Posts and Telecommunications Group (VNPT) reported a profit after tax of VND5,055 billion ($218 million) in 2021, down 11.6% from 2020.

Revenue reached $2.21 billion, up 2.5% from last year, according to VNPT’s consolidated annual report audited by EY Vietnam.

Notably, the total value of cash and short-term deposits amounted to $2.16 billion at the end of 2021, up 12.4% from the start of the year.

The group contributed $233.2 million to the state budget, exceeding 2% of its plan.

VNPT focused on digital infrastructure development last year, expanding the capacity of international internet connections by 23%, boosting the computing/storage capacity of its data center system by 25%, and commercial testing of the 5G network.

The giant also reported good results in its core services like maintaining its lead in fixed broadband subscribers. Information technology infrastructure, digital government, and digital education services climbed by 26.6%, 118.7%, and 15.8%, respectively.

VNPT has formed partnerships with major corporations like Nokia (Finland), Thales (France), and Babylon (U.K.). These collaborations greatly contribute to VNPT's goal of developing digital infrastructure and products.

The corporation expects profit and revenue growth of 6% and 4% in 2022, according to the plan assigned by the Commission for the Management of State Capital at Enterprises.

A major contributor to VNPT's business results is its wholly-owned subsidiary VinaPhone, Vietnam Telecom Services Company.

VinaPhone recorded revenue of $1.79 billion in 2021. Profit after tax reached $60.3 million, the highest in seven years. The company started to break out and grow significantly since 2016, following VNPT’s introductions of other subsidiaries, namely VNPT VinaPhone, VNPT Media, and VNPT Net.

VinaPhone became Vietnam’s second-largest mobile network operator in 2018, accounting for 21% of the mobile market. It currently serves more than 34 million domestic subscribers, as well as providing worldwide coverage and connectivity to over 200 countries and territories via more than 500 network roaming agreements.

VinaPhone was the fastest mobile operator among top providers in Vietnam in the first quarter of 2022, according to Ookla, a data provider for telecommunications operators.