VNG reports 2023 financials: revenue below target, strategic growth in the gaming segment

VNG disclosed its financial performance for 2023, revealing a net revenue of US$298.3 million, falling short of its target of US$393.3 million set in July of the previous year. The company also recorded operating losses amounting to US$82 million, along with a post-tax net loss of US$91 million for the entire year.

However, VNG emphasized that a change in accounting policy renders its 2023 results incomparable to 2022.

CEO Le Hong Minh highlighted positive aspects, noting growth in the gaming segment compared to a stagnant performance in 2022. Additionally, international revenue continued its upward trajectory.

VNGGames, the company's game publishing arm, expanded its user base by 15%, reaching 78.7 million active users in 2023. Bookings, reflecting user spending, surged by 20% year-on-year, totaling US$311.6 million, with over 26% originating from international markets. The company also launched 10 new games and collaborated with Riot Games to publish League of Legends and Teamfight Tactics in Vietnam.

Le underscored ongoing investments in innovation and growth engines such as AI and enterprise products, expected to bolster VNG's performance in 2024 and beyond.

Meanwhile, Zalo, VNG's messaging app, witnessed a 15% increase in quarterly active users, reaching 75.8 million by the end of 2023. Profit from Zalo's business communication platform, catering to over 20,000 business subscribers, saw a remarkable surge of 150%.

Notably, ZaloPay, VNG's digital payment service, managed to slash operating losses by over 40% while experiencing a 27% increase in total payment volume.

Earlier this year, VNG withdrew its IPO application in the US, citing reasons undisclosed, but expressed intentions to file a new registration statement in the future.