VNG posts $297m in revenue, $82m in losses for 2023

Photo credit: VNG

Vietnam-based VNG Corporation generated net revenue of US$298.3 million in 2023, below the US$393.3 million target it had set in July last year. It also logged operating losses of US$82 million and a post-tax net loss of US$91 million for the full year.

However, due to a change in accounting policy, VNG said its results for the year are not comparable with its numbers from 2022.

CEO Le Hong Minh, however, said that the company’s gaming segment grew in 2023 after a flat 2022, while its international revenue continued to improve.

The firm’s game publishing arm VNGGames grew its user base by 15%, reaching 78.7 million active users in 2023. Bookings – a metric that estimates cash spent by users – also hit US$311.6 million, a 20% rise year on year. Over 26% of bookings came from international markets.

The company also introduced 10 new games and collaborated with Riot Games to publish League of Legends and Teamfight Tactics in Vietnam.

“We also continue to invest in innovation and growth engines such as AI and enterprise products,” Le added. “All of these will underpin VNG’s success in 2024 and beyond.”

Zalo, VNG’s messaging app, also reached 75.8 million quarterly active users by the end of 2023 – a 15% improvement year on year.

Profit from Zalo’s business communication platform, which had over 20,000 business subscribers, surged 150%.

Notably, ZaloPay, VNG’s digital payment service, cut down operating losses by over 40% while increasing total payment volume by 27%.

Earlier this year, however, VNG said it withdrew its IPO application in the US, but added that it “intends to file a new registration statement in the future.”

See also: Vietnam’s first tech unicorn VNG set for IPO. Here’s what you need to know