Viettel Global reports rise in profits despite new Myanmar operations
Viettel Global Investment JSC, a subsidiary of military-run telecom giant Viettel Group, reported sales of VND4.43 trillion (US$192 million) and profit of VND1.34 trillion ($58 million) in the third quarter, increases of 5 and 8 per cent year-on-year.
Viettel Burundi and Haiti achieved strong revenue growth of 14 per cent and 26 per cent.
In Haiti, allotment of the 1700 MHz frequency for its 4G network this year gave Viettel’s Natcom an important advantage and it signed up double the number of customers it did last year.
Viettel Global’s sales and management costs have reduced by 4 per cent and 12 per cent this year after adopting a new business model.
It has hired Viettel Telecom to run its operations in foreign markets to take advantage of its resources and operational experience in Viet Nam, and has retained only the functions of strategising, managing finances, and exploring and investing in foreign markets.
Income from financial investments increased by 54 per cent in the third quarter.
Turnover in the first nine months was down 5 per cent to VND12.43 trillion ($540 million), and the company reported a loss of VND812 billion ($35 million) as against a profit of VND273 billion ($11.86 million) in the same period last year.
The loss was because of Mytel, its Myanmar company, which only began operations last June and has yet to break even.
Myanmar is the company’s largest foreign market and Viettel Global pins high hopes on it because the country has a large population.
Mytel signed up 3.2 million subscribers in just the first three months and Viettel has set its sights on breaking even in 2 – 2.5 years against its average of three years.
In terms of turnover, Africa, where it has a presence in Cameroon, Tanzania, Mozambique, and Burundi, was the main contributor with VND5.6 trillion ($243 million).
It is followed by Southeast Asia -- Cambodia and East Timor -- with VND4.54 trillion ($197 million) and Latin America with VND1.7 trillion ($74 million).
Viettel provides 4G services in nine foreign markets, except Cameroon, and electronic wallet services in eight, except Haiti and Myanmar.
It has set itself a goal of expanding to reach a population of 400 – 500 million and becoming one of the 10 top telecom players in the world.
It already is among the top 30 in terms of number of customers.
The company operates in 11 countries -- Viet Nam, Cambodia, Laos, East Timor, Haiti, Peru, Mozambique, Cameroon, Burundi, Tanzania and Myanmar -- though in Laos and Mytel it is a 50 per cent partner with local companies.