How is VNG's business in the first 6 months of the year?

DNVN - VNG Corporation (VNG) has just announced its financial report for the first 6 months of 2024 (BCTC) with net revenue reaching 4,314 billion VND. The company determined to promote the "Go Global" strategy, and at the same time expected that two new spearheads, AI and B2B, will create breakthrough revenue in the second half of 2024.

In the first half of 2024, the company's net revenue reached VND4,314 billion. Gross profit from sales and services reached VND1,511 billion; adjusted net loss from business operations was VND400 million.

Total bookings of the online game segment reached VND 3,613 billion, down slightly by 3% compared to 2023. However, total bookings from the international market increased by 23% over the same period in 2023 (YoY), accounting for 28% of the booking structure of the Online Game segment.

As of the end of June 2024, Zalo continued to record 77 million monthly active users (MAU), up 2% year-on-year, and 1.9 billion messages sent per day, up 7% YoY.

VNG DB's monthly recurring revenue from external customers (excluding internal revenue) grew 79% in the first half of 2024.

Zalopay grew 42% in total payment volume, while optimizing marketing costs. Revenue from financial services grew 190% year-on-year.

VNG currently has 14 offices located in 11 major cities in Asia such as Shanghai, Beijing, Taipei, Bangkok, Singapore...

Despite the unfavorable market context, VNG's core business segments still completed challenging projects: Zalo increased revenue with corporate customers, VNGGames and Zingplay Game Studios continuously "explored" foreign markets, AI Cloud segment was successfully commercialized after only 6 months of implementation, Zalopay repositioned its brand to become an open payment platform.

In the first 6 months of the year, Zalo's core business continued to upgrade products serving corporate customers, with the goal of becoming the top 1 platform for user-business interaction in Vietnam. By the end of June 2024, Zalo had cooperated with many banks to integrate the money transfer feature right in the application, recording a growth of more than 80% in monthly users compared to the same period in 2023. Zalo OA continues to be an effective connection channel between users and businesses, with a 25% increase in the number of businesses paying monthly compared to 2023.

Also in the first 6 months of the year, VNG Digital Business (VNG DB)'s revenue grew positively, continuously cooperating with prestigious global technology partners such as NVIDIA, ST Telemedia Global Data Centres, Vast Data,..

In the security segment, Bshield is currently the first application security solution in Vietnam to participate in data protection for the national application VNeID. The biometric solution trueID also became the first unit in Vietnam to pass the iBeta Level 2 test on anti-fake face, providing services to more than 35 domestic banks and financial institutions.

Last June, VNG Cloud successfully deployed the first inter-regional cloud computing infrastructure in Vietnam with a bandwidth of 50 Gbps, along with a roadmap to provide high-quality cloud solutions that meet the same standards as international cloud service providers.

Notably, the core online game business segment also continued to record positive revenue from the global market. In the first half of 2024, total bookings from the international market increased by 23% over the same period, reaching VND 1,026 billion. VNGGames was also honored as “Best Game Publisher” at the Vietnam Game Festival 2024 hosted by the Ministry of Information and Communications and the “Mobile Gaming Excellence Award” from AppsFlyer.

ZingPlay Game Studios (ZPS) has confirmed that its international revenue from Card & Board exceeds its domestic revenue for the first time. Continuing with this success, in the last 6 months of 2024, ZPS will release more than 10 folk and simple entertainment games suitable for each country's culture. ZPS also aims to become an "AI-first studio", originating from the idea of launching a game studio using AI, providing the necessary tools for users to create their own games.

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