VNG Group (stock code: VNZ) saw its net revenue in the first quarter increase by 32% year-on-year, reaching nearly 2,800 billion VND.
Online games continued to dominate VNG's revenue structure, accounting for nearly 69%, or approximately 1,940 billion VND. The Zalo messaging application and AI platforms ranked second, generating a combined 506 billion VND. The Zalopay payment application and the enterprise AI solutions business followed, achieving 216 billion VND and 170 billion VND, respectively.
According to VNG CEO Kelly Wong, all four of the company's core business segments achieved double-digit growth in the first quarter. Zalopay experienced the most significant surge, growing by 117%, partly due to the introduction of "tap to pay" solutions and the expansion of its international QR acceptance network across five Asian countries.
VNG reported a gross profit of 1,110 billion VND in the first quarter. The profit margin stood at approximately 40%, meaning for every 100 VND in revenue, 40 VND remained after deducting the cost of goods sold. This represents a significant improvement compared to 37.5% in the same period last year.
After all expenses, VNG's after-tax profit reached 125 billion VND. This result ended a streak of losses from the previous two quarters and marked the highest profit since the company listed on the stock market in late 2022. Mr. Kelly Wong attributed this substantial profit not only to the improved business performance of the four core segments but also to operational discipline and cost control.
VNG's financial health has steadily improved recently. Last year, the company reported a consolidated loss of 263 billion VND, extending its losing streak to five consecutive years. However, this figure was only one-fourth of the loss recorded in 2024 and less than half of what management had previously projected.
VNG was established in 2004 in an Internet cafe, initially named VinaGame. Starting with role-playing game publishing, VNG gradually diversified into messaging services, e-payment, online advertising, and artificial intelligence.
The group currently comprises 37 direct and indirect subsidiaries, employing over 3,300 personnel. As of the end of Q1, total assets exceeded 10,730 billion VND, with undistributed profits reaching 740 billion VND.
Phuong Dong
