Vietnam’s tech giant VNG’s income surges to three-year-high despite pandemic

The biggest net income in three years came after the second quarter revenue of VND1,546 billion ($66.6 million), up 19% from a year ago, thanks to the effective financial activities.

Consolidated revenue in the six-month period was reported at VND2,849 billion ($122.7 million), up by 13% while accumulated net income at VND369 billion ($16 million), up by 17%.

The gaming firm targets 2020 revenue at VND 6,714 billion ($289 million), up 20% from 2019 while profit is projected to fall 47.5% due to the Covid-19 pandemic.

With the business results in the first half of this year, the company completed 42% of the revenue plan and exceeded the profit plan of the year.

As of end-June, the firm’s total assets were reported at VND7,329 billion ($315 million) with 60% of cash and deposits.

Regarding investment, VNG holds 22.23% stake in e-commerce platform Tiki, down 2.02% compared to the first quarter.

As of end-March, VNG held 24.25% stake at Tiki, while its ownership ratio in the firm in 2019 was 24.6%. When it started investing in Tiki in February 2016, VNG owned 38% of Tiki’s share.

Tiki has increased its charter capital to VND208.3 billion ($9 million) from VND190.9 billion ($8.2 million) and foreign investors’ ownership at the firm has increased to 54.5%. The increase in capital came mainly from foreign investors.

Tiki has three new foreign shareholders have appeared at Tiki, Success Elite Holdings Limited with over 1.03 million shares, Sakshi Jawa 26,666 shares and Henry Low Kwee Kok 2,191 shares.

Meanwhile, VNG still owns about 4.63 million shares in Tiki, and is the largest shareholder. Behind VNG is China's JD, with 4.17 million shares, corresponding to a 20% ownership.

After this capital increase, foreign investors are holding 54.5% of the capital in Tiki, while domestic investors are 45.5%.

VNG was founded in 2004 with the original name of Vinagame. The company's main business include Zing online newspaper, producing digital content, Zalo, Zing MP3, Tiki

In 2014, VNG was valued at $1 billion by the World Startup Report and is still considered the only unicorn startup in Vietnam.

► Vietnam’s gaming firm VNG’s 1Q net income slightly falls to $6.2 million