VNG lost more than 30 billion VND in the first quarter of 2024

Revenue increased sharply and sales and administrative expenses decreased in the first quarter of the year, but VNG still suffered a loss after tax of more than VND30 billion due to strong fluctuations in corporate income tax and asset loss provisions.

The first quarter financial report of VNG Corporation (stock code: VNZ) recorded revenue of VND2,258 billion, up nearly 22% over the same period. More than VND1,722 billion of this came from online game services. The company's other sources of revenue include online advertising services, ringback tones, song copyrights, and value-added services on telecommunications networks and the internet.

Gross profit reached VND884 billion, up 4.3% over the same period and corresponding to a gross profit margin of 39.1%. The bright spot in business activities during this period was the deep cut in sales and administrative expenses, helping the company earn a net profit of VND74 billion, while in the same period it lost more than VND51 billion. However, corporate income tax increased nearly 3 times over the same period and asset loss provisions jumped, causing the company to continue reporting losses. Specifically, the loss after tax during this period was more than VND31 billion, while in the same period it lost more than VND90 billion.

In a written explanation sent to the Hanoi Stock Exchange, the company representative said that the net loss had decreased sharply thanks to effective cost management. Meanwhile, the company's accumulated losses from last year to this year were mainly due to continuing to promote advertising activities for new and strategic products.

VNG's total assets at the end of the first quarter reached more than VND10,898 billion, a sharp increase compared to VND9,594 billion at the beginning of the year. Cash at the end of the period reached more than VND4,441 billion. The company is in debt of more than VND7,528 billion, most of which are short-term loans. VNG currently has more than VND3,1717 billion in undistributed profit after tax.

VNZ shares currently have the highest market price on the UPCoM market at VND475,000. However, the market price is on a sharp decline from the VND1.15 million range in September 2023 to the current level. Since the beginning of the year, this stock has lost about 30.6%. With more than 28.7 million shares traded, VNG's market capitalization is currently about VND13,650 billion.

VNG has not yet announced plans to hold its annual general meeting of shareholders or its business targets for this year. In 2023, the company will have consolidated revenue of VND8,607 billion, gross profit of VND3,711 billion and a loss after tax of VND756 billion. The loss in 2023 has decreased significantly compared to the loss of VND1,533 billion in the previous year.

Source: https://baodautu.vn/vng-lo-hon-30-ty-dong-trong-quy-i2024-d214543.html