Digiworld increases stake in Vietmoney

February 05, 2024 | 16:48
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Digiworld Corporation (DGW) held an online meeting with investors on February 1 to provide results from 2023 and discuss the firm's prospects for 2024.
Digiworld acquires Vietmoney and starts selling used laptops and iPhones

In the fourth quarter of last year, DGW reported VND4.85 trillion ($205 million) in net revenue, an increase of 19 per cent on-year. The increase was mainly due to the growth in the mobile phone and office equipment segments.

By contrast, the laptop and tablet segment decreased by 10 per cent due to a decline in demand after the back-to-school season and consumers facing economic challenges. Increasing costs pushed DGW's net profit to just VND90 billion ($3.8 million), down 42 per cent on-year.

DGW reported VND18.8 trillion ($76.7 million) in net revenue and more than VND363 billion ($15.3 million) in net profit for the whole of last year, down 15 and 47 per cent respectively compared to 2022, and equivalent to 94 and 91 per cent of the annual plan put forth at the previous AGM.

Doan Hong Viet, chairman of Digiworld, said, "Purchasing power in Vietnam is closely related to that of the European and American markets. In the second half of this year, the Fed's potential lowering of interest rates will activate the stock and real estate markets, meaning high-income individuals will increase consumption," he said.

This means that DGW has drafted this year's business plan cautiously with a revenue target of VND23 trillion ($970 million) - an increase of 22 per cent, and VND490 billion ($20.7 million) in net profit - an increase of 38 per cent compared to last year. The plan is based on revenue forecasts for the laptop and phone segments to grow by single digits, while the office and household equipment should see more growth.

In the first quarter of this year, the electronics retailer expects to see VND4.6 trillion ($194 million) in revenue and VND98 billion ($4.1 million) in net profit - an increase of 24 per cent on-year.

Viet, speaking about DGW's increased ownership in the Vietmoney pawnshop chain to nearly 73 per cent, said. "Acquiring Vietmoney can provide solutions for customers' needs and opens up new strategies for trading used products."

The number of used iPhones sold is twice the number of new devices sold every year. New iPhones have a life cycle of about six years, with users buying a new phone every 2–3 years. Therefore, DGW believes the scale of the used iPhone market is huge, with potential profit margins to match.

"Consumer lending organisations have been more cautious recently, which has negatively impacted purchasing power. Therefore, Vietmoney and DGW will collaborate to enable consumers to more easily sell their used phones to buy new ones," Viet added.

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By Nguyen Huong

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