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Home / Economy / Trade - Service
Mobifone profit decreases by 26% in first 6 months
Hai Yen 07:03, 2018/08/22
TV pay service provider Audio Visual Global (AVG) has paid back VND8.51 trillion (US$365.9 million) to Mobifone after a notorious deal was cancelled earlier this year.
Vietnam Mobile Telecom Services Company (Mobifone) posted pre-tax profit of VND2.43 trillion (US$104.36 million) in the first six months of 2018, down 26% year-on-year, aaccording to the company's financial statement. 
 
Illustrative photo.
Illustrative photo.
During this period, Mobifone's net revenue reached VND17.23 trillion (US$740.14 million), down 7.9% year-on-year, while its gross profit fell 19% to VND4.83 trillion (US$207.43 million). 

Upon breaking down, income from financial activities was reported at VND109 billion (US$4.68 million), 2.5 times higher than the same period last year. Meanwhile, interest expenses amounted to VND71 billion (US$3.05 million), five times higher than the figure recorded in the same period last year. 

Additionally, Mobifone recorded sale and administrative expenses of VND1.96 trillion (US$84.22 million) and VND469 billion (US$20.15 million), up 5.2% and 25.6% year-on-year, respectively. 

By the end of June, Mobifone's total assets were reported at VND36.24 trillion (US$1.55 billion), up nearly VND6.3 trillion (US$270.84 million) compared to the beginning of the year. Cash and cash equivalent soared to VND10.58 trillion (US$454.83 million), compared to VND1.83 trillion (US$78.65 million) six months earlier. 

The result was thanks to TV pay service provider Audio Visual Global (AVG) paying back VND8.51 trillion (US$365.9 million) after a notorious deal was cancelled earlier this year. However, as the cancellation of the acquisition deal has not been completed, AVG is still considered as Mobifone's subsidiary with holding of 95%. 

In December 2015, Mobifone acquired a 95% stake in AVG for VND8.89 trillion (US$398 million). Of the VND8.51 trillion (US$365.9 million) AVG returned to Mobifone, VND68 billion (US$3 billion) was interests generated from the investment until the deal collapsed.

As of June 30, Mobifone's equity was reported at VND18.72 trillion (US$805.07 million), up 12.6% compared to the beginning of the year. The telco's payables stood at VND1.83 trillion (US$78.7 million), of which short-term debts were VND708 billion (US$30.44 million) and long-term debts were VND1.12 trillion (US$48.16 billion). 

Mobifone's lenders are ANZ Vietnam, Mizuho Bank, Shinhan Bank Vietnam and BNP Paribas. 

Earlier, the Ministry of Information and Communications informed that it is expected to complete the equitization process of Mobifone in 2019.
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