Viettel Post returned to high growth with net profit increasing by 12% in Q1/2021 thanks to cost optimization

Viettel Post Corporation (VTP) released its financial statements for the first quarter of 2021 (Q1/2021) in which revenue reached VND 5,158 billion, up 110% year-over-year, and profit after tax amounted to VND109 billion, up 12% year-over-year. As the end of Q1 2021, VTP fulfilled 22% of the profit target for 2021.  By segment, trading revenue surged more than 2.3 times year-over-year to VND 3,550 billion and service revenue soared by 16% year-over-year to VND1,608 billion. The strong increase in trading revenue was mainly thanks to sales from scratch cards and phone SIM cards after VTP received a network of more than 300,000 points of sale from Viettel Telecom in late Q1/2020.

According to VTP’s explanation, the positive earnings growth was driven by cost optimization measures and improvements in operational efficiency.  The company’s gross profit margin reached 11.2% in the first quarter of 2021, which is 1.2 percentage points lower than Q1/2021 but higher than higher than the 9.9% for the whole year of 2020.

For 2021, VTP guides for revenue of VND 21,420 billion, up 23.5% year-over-year, and profit after tax of VND496 billion, up 29.4% compared to 2020. At the company’s AGM in April 2021, Mr. Tran Trung Hung – CEO of Viettel Post – said that 2021 is targeted by Viettel Post as the year of optimizing operational efficiency, so the profit growth will be higher than revenue growth. Some of the measures Viettel Post plans to implement in 2021 include establishing 360 digital post offices, leveraging telecom store channels and points of sale as well as upgrading information technology systems and automatic sorting.

Source: VTP