VNG (VNZ) Posts First VND 1,000bn Profit as Q3 Revenue Hits Record

Overview

VNG Corporation (ticker VNZ, UPCOM) reported Q3 revenue above VND 3,360 billion, up 22% year on year, and after-tax profit of VND 420 billion, taking nine-month profit to VND 1,012 billion. It is the first time the company has exceeded VND 1,000 billion in cumulative profit since its listing in late 2022, and the result moves it closer to ending a five-year loss streak.

Key Facts

• Q3 revenue: above VND 3,360 billion, +22% year on year, a quarterly record since VNG began publishing financial statements four years ago.
• Q3 after-tax profit: VND 420 billion, extending a streak of three consecutive profitable quarters.
• 9M revenue: more than VND 9,230 billion; 9M after-tax profit: VND 1,012 billion.
• Online games contributed about 66% of 9M revenue, or nearly VND 6,100 billion.
• Zalopay fintech revenue nearly doubled year on year to VND 750 billion; active users and total payment value grew at double-digit rates.
• 9M gross profit: nearly VND 3,900 billion, a gross margin above 42%.
• Total assets at end-September: nearly VND 13,000 billion, up more than VND 1,600 billion from the start of the year; liabilities rose to nearly VND 11,700 billion.
• VNZ closed at VND 533,000 on 31 October, the highest-priced stock on the Vietnamese market, with market capitalization above VND 16,000 billion.

What Happened

VNG Corporation, chaired by Mr. Lê Hồng Minh, released third-quarter results showing revenue above VND 3,360 billion, up 22% from the same period last year, and after-tax profit of VND 420 billion. The company said the quarter was its highest-revenue quarter since it began disclosing financial statements four years ago, and the profit marked a third straight profitable quarter. For the nine months to September, revenue exceeded VND 9,230 billion and after-tax profit reached VND 1,012 billion — the first time VNG has crossed the VND 1,000 billion profit threshold since listing on UPCOM in late 2022.

Management attributed the strongest momentum to the fintech arm Zalopay, whose revenue nearly doubled year on year to VND 750 billion, with active users and total payment value also growing at double-digit rates. Online games remained the core business, contributing about 66% of nine-month revenue, or nearly VND 6,100 billion. Gross profit for the nine months was nearly VND 3,900 billion, a gross margin above 42%. The company said its main strategic priorities for the year are artificial intelligence and overseas expansion, targeting at least 20% of revenue from AI products and services by 2030. The results were reported by VNG; the article does not specify whether they were audited.

Market Context

VNZ is listed on UPCOM, Vietnam’s third-tier market for unlisted public companies, and at VND 533,000 per share at the end of October it is the highest-priced stock on the Vietnamese market, with market capitalization above VND 16,000 billion. The stock’s high absolute price and UPCOM listing mean relatively wide bid-ask spreads and limited liquidity compared with HOSE large caps. The earnings beat comes as Vietnamese technology and fintech names benefit from rising digital payment adoption, while the broader market has been sensitive to interest-rate and currency moves. VNG’s return to profitability after five loss-making years contrasts with its earlier growth-at-all-costs phase.

Strategic Significance

The result matters less for the single quarter than for what it says about VNG’s transition from a game publisher to a diversified technology group. Games still generate about two-thirds of revenue and fund the expansion, but Zalopay’s near-doubling to VND 750 billion shows fintech is becoming a second engine. A gross margin above 42% and three consecutive profitable quarters suggest cost discipline is taking hold after years of losses. The AI and overseas targets — at least 20% of revenue from AI by 2030 — are long-dated, but they frame VNG as a potential Vietnamese technology exporter rather than a domestic game distributor. Rising liabilities of nearly VND 11,700 billion bear watching as the company invests in infrastructure and cloud services.

What to Watch

• Full-year 2025 results and whether VNG meets its target of ending the five-year loss streak.
• Zalopay revenue growth and payment volume in Q4, and any regulatory developments in Vietnamese digital payments.
• Progress on the AI revenue target and disclosure of any AI-related contracts or partnerships.
• Overseas market expansion announcements, particularly in games and AI services.
• Liquidity and foreign-ownership data for VNZ on UPCOM, given the stock’s high unit price.