Vietnam’s Unicorn VNG expects 2020 loss at $10.6mln on e-payment investment

Xuan Thinh Tuesday | 06/23/2020 10:33

Photo: VNG

Vietnamese tech firm planned VND246 billion ($10.6 million) after-tax loss in 2020 on investing in strategic products and services including ZaloPay, company leaders told shareholders’ meeting.

However, the company targeted 2020 after-tax profit for shareholders at VND299 billion ($12.9 million) from VND6,714 billion ($289 million) in revenue, up 20% from 2019.

Currently, VNG holds a 60% stake in Zion, the parent company of ZaloPay, which is receiving priority for development in the group. The e-payment application has connected with 90% of banks so far.

Vietnam’s only unicorn had a good year in 2019, reporting net revenue of VND5,178 billion ($222.7 million), up 20% from 2018 while after-tax profit at VND455 billion ($19.6 million), up 36.5%.

Last year, VNG invested in four key product groups including online games, Zalo, electronic payment, cloud services. Products of Zalo Group such as Zalo, Zing MP3 had positive growth at 23% over the same period last year.

In the 2016-2018 period, the company’s profit was strongly affected due to losses from associated company Tiki.

Currently, the occupied foreign ownership ratio at the company is at 48.08% on 49% as regulated by the government.