Viettel Corporation, the leading telecommunications group in Vietnam, boasts a diverse portfolio with over 20 subsidiaries spanning telecommunications, investment, real estate, international trade, and technical services. In 2006, Viettel embarked on its international expansion journey, aiming to tap into promising overseas markets. To fulfill this ambition, the company established Viettel Global (formerly known as Viettel International Investment Joint Stock Company), with the stock code VGI.
According to the company’s official website, Viettel Global has successfully ventured into nine countries across Asia, Africa, and the Americas, serving a combined population of over 220 million people. They have established nine telecommunications companies in these markets, amassing a remarkable customer base of 65 million.
Viettel Global recently released its audited consolidated financial statements for the first half of 2024. The company reported impressive figures, with revenue from sales and services reaching VND 16,594 billion, a 25% increase compared to the same period in 2023. This growth rate far surpasses the global telecommunications industry’s average of 4.3%, as per Gartner. Viettel Global’s daily revenue averaged an astonishing VND 91 billion during this period.
The second quarter of 2024 marked another milestone, with quarterly revenue reaching nearly VND 8,679 billion, a 27.2% year-over-year increase. This also marked the tenth consecutive quarter of revenue growth for VGI. Currently, Viettel Global dominates the market share in seven countries worldwide.
Accompanying the surge in revenue, the company’s profit before tax for the first half stood at VND 4,740 billion, with an after-tax profit of VND 2,855 billion.
Explaining the profit variation for the first six months, VGI attributed the increase in consolidated profit after tax to the strong performance of most of its market companies, including both subsidiaries and associated companies. Revenue from sales and services in these markets witnessed significant growth: Lumitel in Burundi increased by 31%, Movitel in Mozambique by 23%, Natcom in Haiti by 18%, Telemor in East Timor by 11%, Metfone in Cambodia by 8%, and Halotel in Tanzania by 5%.
The electronic wallet companies also exhibited remarkable growth, with M_mola in Mozambique leading the way with a 169% increase, followed by Mosan in East Timor at 34%, Halopesa in Tanzania at 34%, Lumicash in Burundi at 21%, and Emoney in Cambodia at 16%. Profit from associated companies rose by 27%.
Additionally, a substantial reduction in provision expenses (down by VND 875 billion) and improved cash flow from the markets enabled VGI to restructure its deposits and loans, resulting in financial gains that further bolstered profits.
As of June 30, 2024, VGI held over VND 11,151 billion in cash and cash equivalents. This included VND 7.9 billion in cash, VND 10,694 billion in non-term bank deposits, and VND 358 billion in money market funds with maturities of less than three months and interest rates ranging from 3% to 8% per annum (as of December 31, 2023, the rates were 0.7% to 9% per annum). The company also reported inventory worth nearly VND 2,768 billion. During this period, the subsidiaries of the corporation recorded a provision for inventory depreciation of nearly VND 33 billion (compared to over VND 6.7 billion in the first half of 2023) due to the net realizable value of this inventory being lower than its book value. A portion of the circulating inventory, valued at approximately VND 371 billion as of June 30, 2024, has been pledged to secure loans from various banks.
Pha Le
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