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VNG targets higher pre-tax profit this year

Released at: 17:43, 13/06/2017

VNG targets higher pre-tax profit this year

Image: VnEconomy

Pre-tax profit to reach VND908 billion ($40 million), up 34.7% against 2016.

by Hai Van

VNG has set a high pre-tax profit target for this year, of VND908 billion ($40 million), and will continue to not pay dividends to shareholders.

It will hold its annual general meeting (AGM) on June 22, to officially announce its 2017 plans.

This year and in coming years, it will continue to develop key business lines and expand and develop Zalo products and online payment services.

VNG’s business plan has sales and profits growing at over 30 per cent. Revenue is estimated at VND3.96 trillion ($174.42 million), up 31 per cent year-on-year, while the pre-tax profit target of VND908 billion ($40 million) is up 34.7 per cent.

If the goal is reached, it will be less than its pre-tax-profit in 2012 of VND1.03 trillion ($45.36 million).

VNG recorded net revenue of VND3.02 trillion ($133.02 million) in 2016, an increase of 45 per cent against 2015 and 18 per cent higher than targeted. Pre-tax profit was VND673.7 billion ($29.67 million), 2.18-times higher than in 2015 and 2.35 times higher than planned.

Though results have exceeded plans, VNG has not paid dividends to shareholders, so it can reinvest in strategic products.

In 2016, VNG's OTT Zalo took part in a vaccination project in Vietnam. In a letter addressed to company staff at the end of May, Chairman and CEO Le Hong Minh said that VNG will try to improve online payment service products and the user experience.

VNG is a private enterprise operating in the field of technology. Foreign investors currently own 44.64 per cent of charter capital and come from Singapore, Luxembourg, China, the US, and Canada.

It signed a memorandum of understanding on May 30 with NASDAQ regarding the listing of its shares, during Prime Minister Nguyen Xuan Phuc’s visit to the US. 

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