VietNamNet Bridge - Exchange rate fluctuations and increased expenses have caused losses for Viettel Global in Africa.

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The Viettel International Investment Corporation (Viettel Global),  which is responsible for overseas investment activities of Viettel Mobile Group, has announced business results of 2015.

The report highlights the Corporation's revenue in each region. In particular, revenue in the African market in 2015 reached nearly VND4,900 billion (up over 25% compared to 2014). However, the company still had a loss of nearly VND2,600 billion, more than three times over that of 2014.

In the Southeast Asian markets,  it did not incur loss but revenue fell by more than 9%, to VND6,187 billion. Its after tax profit was only VND1,235 billion, down nearly 28% compared to 2014. Only the Latin American market saw a slight increase of revenue.

For the entire system, Viettel Global grossed nearly VND14,900 billion and after-tax profit of VND500 billion. Meanwhile, in 2014, its after tax profit was VND2,300 billion. The after-tax profit in 2015 was the lowest since 2012 of Viettel Global.

Viettel Global said its business operation was at risk due to a change in exchange rates, interest rates and commodity prices.

The financial report shows that the Corporation’s financial expenses in 2015 increased compared to 2014. Losses caused by foreign exchange in 2015 are five times more than 2014, and other financial expenses were 3. 5 times higher. During the year, Viettel Global recorded a net loss from exchange rate of over VND600 billion.

Particularly in the African market, some local currencies of the countries where Viettel invests have depreciated sharply against the US dollar. In addition, an increase of investment in some new markets has affected Viettel’s business in Africa.

Last year Viettel launched mobile networks in the three new markets in Africa: Cameroon, Burundi and Tanzania, with spending of up to $230 million, which made the expenditures in the African market increase.

Viettel Global currently operates mobile networks in Laos, Cambodia, East Timor (Southeast Asia), Mozambique, Cameroon, Tanzania, Burundi (Africa), and Haiti.

US$1 = VND22,3000

VNE