According to a Facebook post by Mr. Doan Van Hieu Em, a member of the Board of Directors of Mobile World Investment Corporation (MWG), EraBlue has brought profits for the fifth consecutive month.
This update boosts shareholder confidence in the Indonesia-based electronics chain’s ability to turn a profit before the fourth quarter of 2024, as agreed upon by the joint venture partners in early August. The company’s optimism is surprising, given that EraBlue incurred losses in the first two quarters of this year.
According to MWG’s Q2/2024 financial statements, the company recorded a loss of VND 26.7 billion from its joint venture, PT Era Blu Elektronik (EraBlue), in the second quarter, bringing the total loss for the first half of the year to VND 47.2 billion. Based on MWG’s 45% ownership stake in EraBlue, the Indonesia-based electronics chain is estimated to have lost approximately VND 104 billion in the first half of 2024.
EraBlue, a new overseas venture for MWG since 2022, primarily focuses on the retail business of mobile devices, electronics, home appliances, and other equipment in Indonesia. The joint venture was established between a Vietnamese company and PT Erafone Artha Retailindo (Erafone), a subsidiary of the Erajaya Group.
MWG initially invested in EraBlue on April 22, 2022, with a capital contribution of VND 181 billion for a 45% stake, as per the resolution of the Board of Directors on December 28, 2021. By the end of 2023, MWG had increased its investment in EraBlue to VND 286.6 billion, but as of June 30, 2024, the fair value of this investment stood at approximately VND 239.5 billion.
The chain may accelerate its expansion next year, targeting 500 stores by 2027. On average, at least ten new EraBlue stores will be opened each month during the 2025-2027 period. Upon reaching the 500-store milestone, the joint venture partners may consider an IPO and listing on the Indonesian stock exchange after 2027.
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