Vietnamese tech major VNG announced financial results for the first nine months of 2024 (9M 2024), showcasing growth across its business segments.
The company’s net revenue reached 6.9 trillion dong ($273 million) in 9M 2024.
It reported an adjusted operating profit of 424 billion dong ($16.7 million) in the nine-month period, marking a turnaround from the 123 billion ($4.8 million) loss recorded over the same period in 2023.
A key driver of this financial success has been the performance of GreenNode, a division of VNG Digital Business (VNG DB), which followed up the success of Southeast Asia’s first AI Cloud Data Center in Bangkok. This facility has generated tens of millions of dollars in revenue, according to the company’s announcement.
In May, VNG announced a net revenue of 7.6 trillion dong ($298.3 million) for the financial year 2023 and a net loss of 2.3 trillion dong ($91 million).
Factoring the challenging operating environment, VNG has delivered a steady performance during the first nine months of the year with a growing contribution of value-added services in Zalo and enterprise customers in Digital Business, continued scaling of the ZaloPay platform, and increase in international revenues, offset by a marginal decline in the games segment.
VNG also aggressively pursued strategic initiatives such as AI and announced outstanding partnerships with local and global partners.
The games segment reported total bookings of 5.6 trillion dong for the first nine months of the year, with 26% derived from international markets. This segment has maintained its vitality with over 77 million quarterly active users as of September 2024.
Zalo, VNG’s popular messaging platform, saw its engagement levels strengthen in the third quarter of 2024. Monthly Active Users (MAUs) increased 3% year-over-year to reach 77.6 million, while daily messages sent rose by 7% YoY to a massive 1.97 billion.
ZaloPay, the company’s digital payment platform, achieved remarkable growth, with a 38% increase in total payment volume and a 196% surge in financial services revenue, compared with the same period in 2023.
Most recently, VNG was investigated by the Ho Chi Minh City Police. “The investigation is still ongoing, and VNG continues to actively cooperate with the authorities, ensuring compliance with their requests,” it said, without divulging details at that time. “VNG’s business and operations are confirmed to be operating normally.”
