sep 7, 2019 - Viettel Global with the 'black spot' Viettel Cameroon

Description:

he reviewed financial statements of the 6 months of 2019 of Viettel International Investment Corporation ( Viettel Global , VGI) said that it is impossible to collect financial statements from its subsidiary, Viettel Cameroon.

Why not merge Viettel Cameroon SARL?

Viettel Global owns 70% of the capital, equivalent to nearly 584 million VND at Viettel Cameroon SARL Company, which owns and operates Nexttel telecommunication network.

Meanwhile, in this report, Viettel Global did not consolidate its business results and cash flow for the 6-month period of Viettel Cameroon SARL.



Viettel Cameroon's business results do not appear in Viettel Global's Q2 / 2019 report



By the time of reviewing the report, Viettel Global could not collect interim financial statements for 2019 and the financial figures for the period from November 1, 2018 to June 30, 2019 of Viettel Cameroon SARL.

Therefore, the auditor may not complete the review as it did not occur and may need to adjust this report.

Viettel Global's financial statements also reflect the potential liabilities of this investment.

Meanwhile, the total bad debt of Viettel Global at the end of June 2019 reached VND 3,199 billion, mainly from Viettel Cameroon.

Specifically, Viettel Global recorded a bad debt of VND 2,465 billion from Viettel Cameroon, of which Viettel Global had to set aside more than VND 1,528 billion for this loan.

Not to mention, Viettel Cameroon also has overdue accounts receivable of VND 369 billion and other debts of VND 279 billion on Viettel Global's reports.





Accordingly, Viettel Cameroon and the telecom management agencies of Cameroon are working together to agree on the company's possible financial obligations in complying with the provisions of telecommunications supply. Subscription information of subscribers.

Viettel Global with black spot Viettel Cameroon - Figure 2

Mytel (Myanmar) reduced its losses from VND525 billion to VND5 billion

Viettel Global has a chartered capital of over VND 30,438 billion, of which Viettel owns 99% of the capital, the rest is other shareholders. Viettel Global has 13 subsidiaries and 3 associated companies.

Regarding the business results, in the first 6 months of 2019, Viettel Global recorded net revenue of 7,854 billion VND, down from 8,003 billion VND in the same period of 2018.

Parent company EAT is 722 billion dong, much better than the loss of 420 billion dong in the same period.




Contributing largely to the 6-month result is Viettel Global's Q2 / 2019 profit after tax of VND 697 billion, while the same period in 2018 was VND 258 billion.

According to the explanation of this unit, because in 2019, the Corporation continued to reduce activities with low profit margin, namely selling equipment to focus on the core segment of providing telecommunications services.

According to Viettel Global, the major contributors are Metfone brand in Cambodia and Mytel in Myanmar.

In which Mytel has become the 3rd mobile network in Myanmar, thanks to this unit, it has reduced its loss from VND525 billion to VND5 billion this period.

As of June 36, 2019, Viettel Global had accumulated losses of VND 5,137 billion.

Short-term and long-term financial loans at the end of the period accounted for VND 8,367 billion and VND 11,058 billion respectively, not much difference compared to the beginning of the period.

Viettel Global went to the UCoM stock exchange in September 2018 with the number of more than 3 billion shares.

As of September 6, VGI shares recorded an increase of 193% compared to the first session, reaching VND 32,300 / share. However, in the past 1 month, this stock has continuously red points and down more than 13%.

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