VNG Group reported net revenue of nearly 3,090 billion VND in the second quarter, marking a 26% increase year-on-year. Online games remained the primary revenue driver, contributing three-quarters of this total, approximately 2,360 billion VND, supported by nearly 62 million regular users. The Zalo messaging application and artificial intelligence (AI) platforms secured the second position in VNG's revenue breakdown, generating nearly 640 billion VND. The remaining revenue originated from the Zalopay payment application and the provision of AI infrastructure services to businesses.

Financial revenue saw the most significant change in the second quarter, surging more than 5 times to nearly 360 billion VND. VNG's management attributed nearly 320 billion VND of this increase to profit generated from the liquidation of a subsidiary, VNG Data Center Joint Stock Company.

Consequently, VNG's pre-tax profit reached nearly 530 billion VND, an approximate eight-fold increase compared to the same period last year. This represents the highest quarterly profit recorded since the company's stock market listing in late 2022, surpassing the previous record established earlier this year.

Cumulatively for the first half of the year, VNG generated over 5,870 billion VND in revenue, with online games contributing more than 3,900 billion VND. The company reported a pre-tax profit of 700 billion VND, which is seven times higher than the same period last year and significantly surpassed its initial target of 300-450 billion VND. If this favorable business performance continues for the next six months, the company, chaired by Le Hong Minh, is on track to break its loss-making streak that has persisted since 2021.

"Artificial intelligence is a factor poised to drive significant breakthroughs in the next growth phase, and we are accelerating this process as rapidly as possible," stated Kelly Wong, Chief Executive Officer of VNG, in the company's business results announcement.

The VNG logo displayed in front of the company's headquarters in TP HCM. *Photo: Luu Quy*

VNG was founded in 2004, originally known as VinaGame, operating from an internet cafe. Initially focused on publishing role-playing games, the company progressively diversified its operations to include messaging services, electronic payments, online advertising, and artificial intelligence.

As of the end of June, VNG managed 37 direct and indirect subsidiaries. Its total assets exceeded 11,600 billion VND, with nearly 40% held as bank deposits.

Phuong Dong