Viettel Global reports 42 per cent increase in gross profit

Myanmar is considered a portential market of Viettel Global, in which it signed up one million subscribers just after being launched 10 days

According to the consolidated first quarter financial statement of Viettel Global, the firm earned VND13.9 billion ($603,319) in pre-tax profit, instead reporting a loss of VND139 billion ($6.03 million) on-year.

The increase of 42 per cent in gross profit is the major factor offsetting the light decrease in its net revenue from sales and services.

The company also reports VND904 billion ($39.23 million) in gross profit and it also saw financial revenue soar to VND550 billion ($23.87 million) from VND139.5 billion ($6.05 million). Besides, it acquired over VND32 billion ($1.38 million) in net profit from trading operations.

The increase in cash flows was another highlight in the financial statement. Notably, in the first three months of this year, net cash flows reached VND685 billion ($29.8 million), far higher than the VND5 billion ($217,021) a year ago. The net cash flow contributed to offsetting investment expenditures, as a result of which positive net cash flows reached VND40 billion ($1.73 million).

To date, Viettel Global owns a charter capital of VND22.43 trillion ($973.55 million). The recent annual shareholders’ meeting approved the plan to increase Viettel Group’s charter capital to VND30.34 trillion ($1.31 billion) by issuing 800 million common shares at a price of VND10,000 apiece, equalling VND8 trillion ($347.2 million).

The proceeds from the share sale will be used to investment in Viettel Global’s projects until 2020. These share volume will not be transferable within one year of the sale.

To date, Viettel Global has investments in nine overseas markets, seven of which are operating in profit, including Cambodia, Laos, Timor Leste, Mozambique, Burundi, Haiti, and Cameroon. Viettel Global has the largest market share of the telecommunications sectors in Laos, Cambodia, and Timor Leste.

Viettel Global has yet to make profit from Myanmar and Tanzania because it started operations in these two market less than three years ago. However, in Myanmar alone, it signed up one million subscribers 10 days after it was launched.

Viettel Global plans to list on the Unlisted Public Company Market (UpCOM) in July.