Vietnamese tech major VNG posts net loss of $82m in fiscal 2023

Vietnamese tech major VNG posts net loss of $82m in fiscal 2023

Vietnam-based tech unicorn VNG Corporation logged net revenue of VND 7,593 billion ($298.3 million) in the financial year 2023 and a net loss of VND 2,317 billion ($91 million), according to a statement on Monday.

The company said its 2023 financials are not comparable with the 2022 numbers due to a change in its accounting policy.

VNG, whose businesses include online games, messaging and electronic payments, reported an operating loss of VND 2,086 billion ($82 million) for the full year. Its net cash flow from operating activities, meanwhile, increased 10x to VND 897 billion ($35.2 million) for the year.

VNG successfully navigated 2023, despite a tough macro environment. Our game business returned to strong growth after a flat 2022, and our international revenue continued to accelerate,” said VNG chief executive Le Hong Minh in a prepared statement. 

VNGGames, the company’s game publishing arm, saw its total bookings – a non-GAAP operating metric used by the firm to estimate the cash spent by users – reach VND 7,930 billion ($311.5 million), a 20% year-on-year increase. About 26% of the bookings came from international markets.

The gaming arm also reported a 15% year-on-year increase in its quarterly active users to 78.7 million in 2023.

VNG’s messaging platform, Zalo, reached 75.8 million monthly active users (MAUs) by the end of 2023. The company said revenue from its business communication platform, which had more than 20,000 customers, increased by 150% over 2022.

ZaloPay VAS, VNG’s fintech business, reduced its operating losses by over 40% while increasing its total payment volume by 27%. Its universal QR code solution is now accepted at over 12,000 merchant chains across the country.

In January, Ho Chi Minh City-headquartered VNG withdrew its initial public offering (IPO) registration in the United States, saying it “has determined not to conduct a registered offering at this time and intends to file a new registration statement in the future”.

According to a Reuters report, the company could not meet certain registration deadlines and, therefore, withdrew its application.

Edited by: Deepshikha Monga

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