Viettel Global posts highest profit in four years in 2018

Viettel Global Investment JSC, a subsidiary of Viettel Group, posted a gross profit of US$277.7 million in 2018, the highest level in the past four years and representing a year-on-year increase of 19 percent.

Viettel Global posts highest profit in four years in 2018
Metfone in Cambodia and Unitel in Laos posted the highest profit growth in the past four years (11 per cent and 16 per cent increases, respectively). — Photo Viettel Global

According to its audited business results in 2018, its net revenue fell by over VND2.1 trillion from the previous year to VND16.8 trillion. The decrease was because revenue from equipment sales was reduced from VND3.9 trillion in 2017 to VND1.3 trillion in 2018.

The decreased revenue in the equipment business which has low profit-to-sale ratio was part of Viettel Globals strategy. It instead focused on telecommunications – its core business.

This was the reason the company reported high profit despite a decrease in revenue.

Africa and ASEAN markets were two main contributors to its revenue growth last year with revenues of VND7.1 trillion and VND6.1 trillion, respectively. The Latin American market contributed VND2.3 trillion to revenue in 2018. Its two telecom networks in Laos and Myanmar were not consolidated into its revenue as Viettel Global holds less than 50 per cent of chartered capital.

Last year, Viettel Global cut management and sale spending by VND650 billion.

 

Mytel – Viettels brand in Myanmar – reached five million subscribers after only six months. This market has seen the most impressive growth in Viettel Globals overseas investment history.

By the end of April, Mytal was in the top three largest telecoms networks in Myanmar, accounting for 14 per cent of the countrys market share after eight months of operation. It was expected to gain profit in 2019 and continue to provide growth momentum for Viettel Global.

Its other markets also saw positive business results such as Natcom in Haiti with growth rate of 520 per cent, and Lumitel in Burundi with growth rate of 226 per cent.

Metfone in Cambodia and Unitel in Laos posted the highest profit growth in the past four years (11 per cent and 16 per cent increases, respectively). Its Telemor brand in East Timor has been the first telecom network providing e-wallet and mobile phone payments in the country.

Its shares (VTG) surged to reach the highest level of VND28,000 per share in March – double than that of the end of 2017. Its capitalisation reached more than VND50 trillion. — VNS

 
 
 
 
 
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