ZaloPay reports losses of $36.5 mln
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Zion JSC, which owns e-payment service ZaloPay, said it racked up losses exceeding VND840 billion ($36.5 million) in the first nine months this year.
Incurring losses of VND667 billion last year, Zion has heavily invested in boosting ZaloPay coverage, competing with other payment intermediaries in recent years.
Vietnamese online gaming giant VNG, which holds a major stake in ZaloPay, made revenues of nearly VND5.7 trillion in the first nine months of this year, up more than 28 percent year-on-year, and gross profits of over VND2.7 trillion, up 34 percent.
VNG, which targets revenues of over VND7.6 trillion this year, up 26 percent against last year, is diversifying business by focusing on payments, artificial intelligence, and cloud computing.
According to VNG’s 2020 annual report, the number of monthly ZaloPay users quadrupled against 2019.
Questions & Answers
Q.What were Zion JSC's losses in the first nine months of this year?
What were Zion JSC's losses in the first nine months of this year?
Zion JSC, the owner of ZaloPay, reported losses exceeding VND840 billion, which is equivalent to $36.5 million, during the first nine months of this year. This comes after incurring significant losses in the previous year.
Q.Why has Zion JSC been incurring such substantial losses?
Why has Zion JSC been incurring such substantial losses?
Zion JSC has heavily invested in boosting ZaloPay's coverage in recent years. This strategy aims to help the e-payment service compete with other intermediaries in the market, driving up expenditure.
Q.How did VNG perform financially in the first nine months of this year?
How did VNG perform financially in the first nine months of this year?
VNG, which holds a major stake in ZaloPay, generated nearly VND5.7 trillion in revenue, a 28 percent increase year-on-year. Gross profits also rose by 34 percent, exceeding VND2.7 trillion.
Q.Is ZaloPay seeing an increase in user numbers?
Is ZaloPay seeing an increase in user numbers?
Yes, ZaloPay has seen a substantial increase in its user base. According to VNG’s 2020 annual report, the number of monthly ZaloPay users quadrupled compared to figures from 2019.
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