VTC Telecom 2025 Revenue Surges 221% on Equipment, IT Solutions Expansion

Overview

VTC Telecom (HNX: VTC), the Vietnamese company behind Vietnam Airlines’ in-flight WiFi service, reported 2025 consolidated revenue of nearly VND 523 billion, up 221% year-on-year. Net profit was flat at about VND 4 billion due to a low-margin revenue mix and rising costs. The company targets 2026 revenue of VND 575 billion (+10%) and net profit of VND 4.5 billion (+13%).

Key Facts

• 2025 consolidated revenue reached nearly VND 523 billion, exceeding the plan by 5% and up 221% year-on-year.
• Net profit after tax was approximately VND 4 billion, flat compared to the prior year.
• Growth was driven by expansion in equipment trading, telecom technical services, and IT solutions for customers inside and outside the VNPT ecosystem.
• Low-margin equipment trading remained a large part of revenue, while rising FX rates, interest costs, and management expenses pressured profitability.
• 2026 targets: consolidated revenue of VND 575 billion (+10%) and net profit of VND 4.5 billion (+13%).
• The company plans a 5% cash dividend for 2026.
• VTC Telecom operates the in-flight connectivity (IFC) service for Vietnam Airlines, launched commercially on August 5, 2025, using Viasat satellite technology.

What Happened

At its annual general meeting on April 23, 2026, VTC Telecom announced its 2025 results and 2026 business plan. The company reported consolidated revenue of nearly VND 523 billion, up 221% year-on-year, driven by expansion in equipment trading, telecom technical services, and IT solutions for customers both within and outside the VNPT ecosystem. However, net profit after tax was flat at about VND 4 billion, as the revenue mix remained heavily weighted toward low-margin equipment trading. Additionally, adverse movements in exchange rates and interest rates, along with higher management expenses from business expansion, weighed on profitability.

For 2026, VTC Telecom targets consolidated revenue of VND 575 billion, up 10% from 2025, and net profit of VND 4.5 billion, up about 13%. The company also plans a 5% cash dividend. To achieve these targets, VTC will focus on key products and services such as Cloud, Kaspersky security, the vnEdu digital education platform, in-flight connectivity (IFC), WiFi Marketing, electronic authentication, and information security solutions. It will also maintain stable revenue from traditional telecom-IT services, aligning with VNPT’s infrastructure investment roadmap for 2025-2030, particularly in 5G, mobile data, and fixed broadband.

Market Context

VTC Telecom is listed on the HNX. The stock has seen limited trading activity, with a market capitalization of around VND 200-300 billion. The telecom and IT services sector in Vietnam is growing, driven by digital transformation and infrastructure investments by VNPT and other operators. VTC’s revenue surge in 2025 reflects its success in capturing equipment and service contracts, but the flat profit highlights margin challenges common in hardware-heavy businesses. The company’s role in Vietnam Airlines’ IFC service provides a unique growth avenue, though it is still in early commercialization.

Strategic Significance

VTC Telecom’s strategic pivot toward higher-margin digital services (Cloud, security, education platform, IFC) is critical for improving profitability. The company’s partnership with VNPT and its role in Vietnam Airlines’ IFC service position it to benefit from growing demand for connectivity and digital solutions. However, the low-margin equipment trading segment remains a drag on earnings. Success in scaling IFC and other value-added services will be key to achieving the 2026 profit target and beyond. The 5% dividend plan signals management’s confidence in cash flow, but investors should monitor the revenue mix shift.

What to Watch

• Q1 2026 earnings release to assess revenue mix and margin trends.
• Expansion of IFC service to more airlines or routes, and subscriber uptake.
• Progress in Cloud, security, and vnEdu contract wins.
• Impact of VNPT’s 5G and broadband investment on VTC’s equipment and service revenue.
• Management commentary on cost control and margin improvement in subsequent quarters.