Vietnam gaming firm VNG’s profits fall 23% in 9 months

Third quarter revenue was reported at VND1,574.6 billion ($67.8 million), up 17 percent year-on-year while profit after tax at VND149.4 billion ($6.4 million), down 33.4 percent from a year ago.

Though gross profit jumped nearly 111 percent to VND722 billion ($31 million), but profit dropped by over 33 percent mainly due to the increased selling expenses. Selling expenses in the period increased 46.7 percent.

In the nine-month period, VNG recorded revenue of VND4.4 trillion ($189 million), up 14 percent while after-tax profit reached VND414 billion ($17.8 million), down over 23 percent compared to the first nine months of 2019.

The Vietnamese tech firm expects 2020 revenue of VND6,7 trillion ($288 million) and an after-tax loss at VND246 billion ($10.6 million), according to annual general shareholders’ meeting.

In the first nine months of the year, the company proved to benefit from the Covid-19 pandemic like other tech giants in the world as social distancing campaigns and lockdown have been applied in several parts of the world.

As of end-September, total assets of the business increased by 10.3 percent to VND7,747 billion ($333.6 million). In which, assets are mainly money and financial investment reached VND4,662 billion ($200.8 million), accounting for 60.2 percent of total assets.

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