Tencent-invested Vietnamese game developer sees audited 2023 losses double to $82.5 mln

Ho Chi Minh City-based online game developer VNG Corporation, has reported an audited consolidated net loss of VND2,101 billion ($82.5 million) in 2023, nearly double its 2022 figure.

Chinese tech giant Tencent Holdings owns 23% of voting rights in the corporation.

Compared to pre-audit financial reports, the 2023 loss has nearly quadrupled from VND540 billion ($21.2 million).

VNG, a leading online game developer in Vietnam, has attributed the significant disparity in profit data to accounting policy changes made in 2023. The changes related to the registering of online game revenue as the system allowed detailed tracking and recording of player data.

In 2023, VNG recorded revenues of VND1,547 billion ($60.78 million) for unfulfilled obligations from online game players.

The firm explained that changes in the accounting regime, which helped the firm approach International Financial Reporting Standards (IFRS), made corresponding data of consolidated financial statements incomparable with the data of the current accounting period.

In 2023, the firm recorded consolidated revenues of VND7,593 billion ($298.3 million), down 2.6% year-on-year. Of this, VND5,483 billion came from online games, VND971.7 billion from added-value telecommunications and Internet services, and VND916.5 billion from online advertising.

During last year, its messaging app Zalo had 75.8 million monthly active users (MAUs). It Zalo Short Video service, launched in mid-2023, had 23.7 MAUs.

At end-2023, VNG had total assets of VND9,594.7 billion ($377 million), up 7.8% year-on-year. This amount included VND3,838 billion in cash and cash equivalents.

The firm said it contributed VND1,107 billion ($43.5 million) to state coffers last year.

VNG shares, traded on the Unlisted Public Company Market (UPCoM) as VNZ, closed Wednesday down 5.6% at VND548,000 ($21.53) apiece. This was the highest market price among publicly traded companies in Vietnam, but represented a steep drop from a peak of VND1.279 million recorded last August.