At the annual general meeting early next month, VNG Group's leadership is set to project a full-year revenue ranging from 12,500 billion to 13,500 billion VND, with a pre-tax profit target of 300-450 billion VND. This marks the first time the company has aimed for profitability since its stock exchange listing. If achieved, the company, chaired by Le Hong Minh, will break its loss streak, which has extended since 2021.
For the past three years, VNG had consistently projected losses, ranging from 150 billion to 600 billion VND. In fact, one year saw the company's losses surge to over 2,300 billion VND.
This year's profitability goal is on track, as VNG recently reported a net profit of 1,100 billion VND and an after-tax profit of 125 billion VND for the first three months of the year, its highest quarterly performance in four years. VNG CEO Kelly Wong attributed the substantial profit to double-digit growth in three of its four core business segments. Operational discipline and cost control also positively impacted the financial situation.
VNG does not plan to distribute dividends this year. According to leadership, the 558 billion VND in undistributed profit will be retained for investment and product development activities.
Leadership stated that key business directions this year revolve around artificial intelligence (AI) and international market expansion. The company plans to vigorously develop AI services and solutions, leverage intellectual property assets for video games, and invest in information technology infrastructure and smart cloud computing services.
VNG was established in 2004 in an internet cafe, initially named VinaGame. Starting with role-playing game publishing, VNG gradually expanded into messaging services, electronic payments, online advertising, and artificial intelligence.
VNG expects that by 2030, at least 20% of its revenue will come from AI products and services. In the long term, the company aims to become a "global industrial enterprise originating from Vietnam."
VNG currently operates 37 direct and indirect subsidiaries, employing over 3,300 personnel. Total assets at the end of Q1 exceeded 10,730 billion VND.
Phuong Dong
