VNG in $4.43 million deficit in second quarter of 2019

VNG, Vietnam's first unicorn startup had a rough second quarter

According to the statement, VNG made a net revenue of VND952.5 billion ($41.41 million) from sales and services in the second quarter, an increase of 32.7 per cent compared to the VND717.6 billion ($31.2 million) last year.

Accumulated until the end of the second quarter, the company's revenue reached nearly VND1.82 trillion ($79.13 million), up 22.9 per cent against the VND1.477 trillion ($64.22 million) in the same period of last year.

After deducting production costs, VNG's gross profit from services provision reached VND291 billion ($12.65 million), up 11.48 per cent.

However, VNG recorded VND98.5 billion ($4.28 million) in financial expenses, 2.7-times higher than in the same period a year before, while sales expenses reached VND169 billion ($7.35 million), up 38 per cent, and VND138 billion ($6 million) of corporate management costs, up 41 per cent.

From the beginning of the year to the end of the second quarter last year, VNG earned VND100.9 billion ($4.39 million).

As of June 30, 2019, VNG's total assets were nearly VND4.1 trillion ($178.26 million), an increase of 7.3 per cent compared to the beginning of the year, most of which (VND1.346 trillion – $58.52 million) were concentrated in subsidiaries or associated companies. This resulted in high provisions of VND295 billion ($12.83 million).

Despite the big losses in the separate statement, VNG's consolidated business results are relatively positive. Accordingly, its revenue in the second quarter this year is VND1.302 trillion ($56.61 million), up 31per cent on-year, while after-tax profit was VND160 billion ($6.96 million), up 39 per cent.

Accumulated in the first six months, VNG's consolidated net revenue was VND2.524 trillion ($109.74 million), growing by 22 per cent on-year. Consolidated profit in the first half was VND315 billion ($13.7 million), an increase of more than 30 per cent.