Viettel ranks first in profits in telecom market

Profits from January to August 2016 of telecom giants in Vietnam show that Viettel took the lead.


According to Tran Manh Hung, Chair of the Vietnam Posts and Telecommunications Group (VNPT), the corporation earned more than VND83,000 billion of revenue during this period, equivalent to 63% of its yearly plan.

Regarding profit, VNPT earned VND2,838 billion, equivalent to 66.5% of the plan for 2016.

For MobiFone Telecommunications Corporation, Deputy General Director Bui Son Nam said MobiFone’s revenue in August reached more than VND2,045 billion and VND24,033 billion for eight months, completing 67% of the yearly plan, a 12% growth rate over the same period last year.

Mr. Nam also said MobiFone’s pretax profit for the past eight months was estimated at VND3,886 billion, equivalent to about 74% of the annual plan. The after-tax profit margin on equity reached 19.37% and it paid taxes of VND3,704 billion.

Meanwhile, the largest mobile network in Vietnam – Viettel – earned about VND144,000 billion of revenue in the period and a pre-tax profit of VND25,000 in eight months.

Thus, pre-tax profit in the first eight months of Viettel is 3.7 times higher than the profits of both VNPT and MobiFone.
The telecommunications giants proposed at a conference held by the Ministry of Information and Communications on September 6 that the Ministry would remove regulations on ceiling prices for international calls to curb revenue declines from competing with OTT services.
MobiFone’s international calls have declined sharply since early in the year, according to Nam. The number of calls in August was 15 percent lower than in July. He also emphasized that MobiFone’s foreign partners also complain about the ceiling.
VNPT's Hung said that business results in international services have fallen and he proposed the Ministry review the regulation on ceiling prices for international calls as they are no longer appropriate.
Nguồn: Source: VietnamNet