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MobiFone's 2016 pre- and after-tax profit down

Released at: 10:06, 02/06/2017

MobiFone's 2016 pre- and after-tax profit down

Illustrative image (Source: mobifone.vn)

Recently released financial statement shows 27% decline in pre-tax profit and 22% in after-tax profit.

by My Van

MobiFone has released its audited 2016 financial statement for the parent company, with net revenue from goods and services reaching nearly VND35.08 trillion ($1.54 billion), up nearly VND3.7 trillion ($162.9 million), or 12 per cent, over 2015.

Gross profit and financial income declined, however, while sales costs increased 27 per cent, to more than VND1.2 trillion ($52.8 million, resulting in a 27 per cent decline in pre-tax profit, from VND7.1 trillion ($312.5 million) to VND5.025 trillion ($221.2 million). After-tax profit fell 22 per cent, to VND4.223 trillion ($185.9 million). 

At the end of 2016, MobiFone’s total debts stood at VND8.4 trillion ($369.7 million), mainly short-term payables but with no bank debt. Total cash and short-term deposits fell significantly since the beginning of the year, from approximately VND9 trillion ($396.2 million) to VND1.8 trillion ($79.2 million).

MobiFone also said that 2016 was the first year that its subsidiary AVG returned a profit, of VND54 billion ($2.4 million). The acquisition of AVG was part of its business development strategy for 2016-2020 based on four pillars: Telecommunications and Information Technology, Television, Distribution and Retail, and Multi Services. MobiFone has three other subsidiaries: MobiFone Services, MobiFone Plus, and MobiFone Global.

In 2017, MobiFone targets total revenue of VND44.205 trillion ($1.9 billion), of which the parent company’s revenue is VND39.669 trillion ($1.75 billion). Pre-tax profit and after-tax profit are to be VND5.589 trillion ($246 million) and VND4.471 trillion ($196.8 million), respectively. Planned investment capital for development during the year is estimated at VND10.2 billion ($449 million).

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