MobiFone Posts $112 Million Profit in H1 ahead of IPO

Tuan Minh

16:37 28/10/2016

BizLIVE - State-owned MobiFone reported a net profit of $112.5 million in the first half of this year, easing slightly from a year earlier, while its long-term financial investment jumped 14-fold to $423.4 million.

MobiFone Posts $112 Million Profit in H1 ahead of IPO

MobiFone reported a net profit of $112.5 million in the first half of this year. Photo: Internet

State-owned MobiFone Telecommunications Corporation (MobiFone) reported a net profit of 2.51 trillion dong ($112.5 million) in the first six months of this year, representing a minor decline from a year earlier.
Its revenue increased 19.7% year-on-year to $727.6 million in the six-month period, according to MobiFone’s latest financial statement.
This is the first time the second-largest mobile network operator in Vietnam released a financial statement after its split from the Vietnam National Posts and Telecommunications Group (VNPT) in mid-2014.
A fall in financial revenue and a surge in sales costs were attributable to the decrease in the firm’s profit.
At the end of June, the telco’s total assets slid 5.42% from late 2015 to $1.04 billion. Of the amount, cash and cash equivalent dropped 62.7% to $53.14 million while short-term financial investment fell 48% to $134.8 million.
Notably, MobiFone’s long-term financial investment portfolio surged 14-fold to $423.4 million. The firm, however, did not disclose where it had poured money into.
In January this year, MobiFone announced the acquisition of Audio Visual Global Company (AVG), the provider of subscription-based television service in Vietnam, for an undisclosed value.
The Government Inspectorate initiated a comprehensive inspection into the acquisition. The results are expected to be announced soon.
According to the Thoi Dai (Time) newspaper, at the end of 2015, MobiFone invested in three subsidiaries namely Mobifone Service, Mobifone Global and Mobifone Plus, adding to Hanoi-based TPBank.
MobiFone is among sizable state-owned enterprises expected to launch an initial public offering by the end of this year. A host of foreign players have shown interes in acquiring strategic shares in the Vietnamese firm.

TUAN MINH

Từ khóa: Mobifone, VNPT, AVG