VNG Turns the Corner: How Vietnam’s Gaming Giant Achieved Profitability
VNG Joint Stock Company (VNG) has just announced its financial report as of September 30, 2024, in which: accumulated revenue in the first 9 months of the year reached 6,892 billion VND, net profit from business activities after adjustment reached 424 billion VND, strong growth compared to the loss of 123 billion VND in the same period in 2023.
In the first 9 months of 2024, Zalo recorded good performance from value-added services; Zalopay continuously expands the scale of the platform; VNG Digital Business (VNG DB) has positive revenue growth from corporate customers; Revenue from international markets continued to increase, although revenue from the Online Game segment decreased slightly, a VNG representative said.
Accordingly:
●Total bookings of the Online Games segment reached VND 5,606 billion, down slightly compared to the same period in 2023, of which 26% are bookings from the international market. This segment also recorded the number of quarterly active users (QAU) reaching more than 77 million people.
●Zalo recorded 77.6 million monthly active users (MAU), up 3% over the same period and nearly 1.97 billion messages sent per day, growing in both users and revenue from service.
●Zalopay grew by 38% in total payment volume and revenue from financial services increased by 196% compared to the first 9 months of 2023.
●VNG DB recorded revenue growth of 58% over the same period in 2023, of which revenue from the global market increased 14 times and accounted for 38% of total revenue.
●By the end of September 2024, VNG’s total state budget contributions reached more than 700 billion VND. In 2023, VNG is ranked 28th out of the 100 largest private enterprises paying the budget in Vietnam (according to CafeF).
9T/23
9T/24
(%)
Online games
Total bookings (billion VND)
5.995
5.606
(6%)
Bookings from international markets (billion VND)
1.473
1.450
(2%)
Quarterly active users (QAU – million)
88,3
77,1
(13%)
Zalo
Monthly active users (MAU – million)
75,8
77,6
3%
Number of messages sent per day (million)
1.84
1.97
7%
VNG
(Loss) Net profit from business activities after adjustment (billion VND)
(123)
424
n.a
After the success of the first AI Cloud Data Center in Southeast Asia in Bangkok, bringing in tens of millions of dollars in revenue, GreenNode – a unit of VNG Digital Business – has continued to launch innovative AI business models. created for regional businesses. GreenNode’s solutions, from infrastructure to platform, help small businesses save significant costs in AI training.
In October 2024, generative artificial intelligence (genAI) technology developed by Zalo AI supported VIB International Bank to issue credit cards with personalized design features, reaching more than 4,000 applicable cards. Use after only 2 days. More than 5 million Zalo AI cards have also been created and sent by users on occasions like October 20, showing the great potential of personalized AI products in the Vietnamese market.
In addition, the AI Artian graphics platform developed by the VNGGames team has just launched version 2.0, providing more accurate and relevant results, shortening the time to create image ideas by 30%, reducing the time by 50%. Time to create illustration models and create video trailers in just a few minutes.
In the Online Games segment, VNGGames continuously cooperates with names in the global gaming industry. Specifically, in August, VNGGames announced the establishment of a joint venture with NCSOFT (Korea) to exclusively release NCSOFT’s blockbuster games throughout Southeast Asia; officially released Roblox – VNG and aims to build a creative, safe gaming community in Vietnam. VNGGames also signed a cooperation agreement with Riot Games on implementing the League of Legends eSports plan in 2025, aiming for a large-scale League of Legends tournament throughout Asia – Pacific, gathering top teams. region, including Vietnam.
In September, Zalopay deployed the Multi-Function Zalopay QR payment code for BEST Express collection (COD) orders in 63 provinces and cities across the country, bringing convenience and safety in payment to both users, retailers as well as delivery drivers.