Viettel Global reports profit surge

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Telecom giant Viettel Global Investment JSC has made VND1.17 trillion ($50.5 million) in pre-tax profits after reporting a loss last year. Viettel Global, which covers overseas investments by military-run Viettel Group, had made a VND15.77 billion ($681,000) loss in the same period last year, according to the company’s audited consolidated financial statements.
Revenues in the first six months reached VND7.9 trillion ($341 million), down 1.5 percent year-on-year, but a sharp decrease in the cost of sales improved profits, the company’s management board said.
In the first half of the year, the company focused more on its core business of telecommunications, raised its average revenue per user (ARPU) and cut down the sale of equipment with low-profit margins. This raised the company’s operating profit margin (excluding financial income) to 35.3 percent from 26.4 percent in the same period last year.
Revenue in Southeast Asia, especially driven by growth in the Cambodian market, accounted for 53 percent of Viettel Global’s revenue in the first six months, followed by Africa with 33 percent and South America with 14 percent.
Viettel Global was established in 2006 to spread Viettel Group’s presence in foreign markets. It currently operates in ten markets, namely Cambodia, Laos, Timor Leste, Mozambique, Burundi, Haiti, Peru, Cameroon Tanzania and entered Myanmar last year.
Viettel Global said it has plans to enter new markets, mainly in ASEAN.
Viettel Global is one of the largest enterprises on Vietnam’s Unlisted Public Companies Market (UPCoM) in terms of both asset size and market capitalization. As of June 30, the company’s total assets were VND59 trillion ($2.54 billion), of which equity accounted for VND25 trillion ($1.08 billion).
Questions & Answers
Q.What led to Viettel Global's significant profit surge despite a slight decrease in revenue?
What led to Viettel Global's significant profit surge despite a slight decrease in revenue?
The company's management board stated that a sharp decrease in the cost of sales improved profits. They focused on core telecommunications business, increased average revenue per user, and reduced equipment sales with low-profit margins.
Q.Which geographic regions are the main contributors to Viettel Global's revenue?
Which geographic regions are the main contributors to Viettel Global's revenue?
Southeast Asia accounted for 53 percent of revenue in the first six months, significantly driven by growth in Cambodia. Africa followed with 33 percent, and South America contributed 14 percent of the total.
Q.How did Viettel Global's operating profit margin change compared to the previous year?
How did Viettel Global's operating profit margin change compared to the previous year?
The company's operating profit margin, excluding financial income, increased from 26.4 percent in the same period last year to 35.3 percent. This improvement was due to strategic changes in their business focus.
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