Telio, Funding Asia, ZaloPay continue to be the “pain” of VNG
Companies continue to publish their financial statements and in the first 6 months of the year, VNG lost more than 500 billion dong.
Recently, VNG has announced its consolidated financial statements for the second quarter, recording net revenue of over VND 2,000 billion, equivalent to the same period last year. However, this quarter, VNG is suffering an after-tax loss of VND 372 billion, while in the same period, a profit of VND 221 billion.
Accumulated in the first 6 months, VNG achieved revenue of 3,668 billion dong, up 3.5% over the same period. Loss after tax is 502 billion dong, in the same period last year, profit is 165 billion dong. This year, the company sets an expected revenue target of VND10,178 billion and an expected loss after tax of VND993 billion. Thus, in the first half of the year, the company achieved 36% of the year’s revenue target, and the after-tax loss was half of the expectation.
It can be clearly seen that VNG’s losses are concentrated in associated companies, increasing 6 times to nearly 55 billion dong in the first 6 months of this year compared to the same period last year. In which, the loss mainly lies in Telio (32 billion VND) – this unit was established in 2019 operating in the field of e-commerce. VNG is holding 16.7% stake in this company.
Another notable loss came from its affiliate Funding Asia (VND 11 billion) – based in Singapore, which is an investment company. At the end of the second quarter, VNG held 5.11% ownership of Funding Asia.
However, the biggest loss still came from non-controlling shareholders (229 billion dong in the first 6 months). This is considered possible due to the investment in Zion – the owner of the Zalo Pay e-wallet. Currently, VNG is holding more than 60% of Zion’s shares.
In terms of notable activities in the past 6 months, VNG is getting very close to listing on the US Nasdaq stock exchange, through the offering of 12.5% shares by the end of this year. Previously, it was reported that VNG plans to list on Nasdaq from 2017 through VNG reaching a memorandum of understanding (MOU) with Nasdaq on the initial public offering of shares.
Source: VietnamBiz
