Press release-VNG first 9 months of 2024

(Ho Chi Minh City, October 31, 2024) - VNG Corporation (VNG) has just announced its Financial Report as of September 30, 2024 with many positive figures: accumulated revenue in the first 9 months of the year reached 6,892 billion VND, adjusted net profit from business activities reached 424 billion VND, strong growth compared to the loss of 123 billion VND in the same period in 2023.

*VNG Headquarters in District 7, Ho Chi Minh City*

In the first 9 months of 2024, VNG's core segments all made efforts to stick to the business plan, in which Zalo recorded good results from Value-Added Services; Zalopay continuously expanded its platform scale; VNG Digital Business (VNG DB) saw positive growth in revenue from corporate customers; Revenue from international markets continued to increase, although revenue from the Online Games segment decreased slightly. The company continued to promote strategic spearheads such as AI; continuously announced cooperation with large, reputable partners at home and abroad; while always ensuring social responsibilities, persistently pursuing the goal of developing valuable technology for Vietnamese users.

Total bookings of the Online Games segment reached VND 5,606 billion, down slightly compared to the same period in 2023, of which 26% were bookings from the international market. This segment also recorded the number of quarterly active users (QAU) reaching more than 77 million.
Zalo recorded 77.6 million monthly active users (MAU), up 3% year-on-year, and nearly 1.97 billion messages sent per day, growing both in users and revenue from services.
Zalopay grew 38% in total payment volume and revenue from financial services increased 196% compared to the first 9 months of 2023.
VNG DB recorded a 58% revenue growth compared to the same period in 2023, of which revenue from the global market increased 14 times and accounted for 38% of total revenue.
By the end of September 2024, VNG's total contributions to the state budget will reach more than 700 billion VND. In 2023, VNG will rank 28th out of 100 private enterprises with the largest budget contributions in Vietnam (according to CafeF).

	9T.23	9T.24	(%)
Online games
Total bookings (billion VND) 1	5,995	5.606	(6%)
Bookings from international markets (billion VND)	1,473	1,450	(2%)
Quarterly Active Users (QAU - million) 2	88.3	77.1	(13%)
Zalo
Monthly Active Users (MAU - million) 3	75.8	77.6	3%
Number of messages sent per day (million) 4	1,841	1,966	7%
VNG
(Loss) Adjusted net profit from business operations (billion VND) 5	(123)	424	na

“The Q3 numbers are of special significance to VNG, as all business segments have made great efforts to reach the finish line in a challenging context. The spirit of “embracing challenges” has truly helped VNG mature, flexibly adapt to all conditions on the journey of creating technology, developing people and becoming a global technology enterprise,” affirmed Mr. Le Hong Minh, Founder and CEO of VNG.

Actively apply technology to support the community

With 77.6 million regular users and widespread coverage, Zalo has become an effective, fast, and free connection tool between people and State agencies and public utilities, including Public Administration, Security,Education , Health... By the end of the third quarter of 2024, Zalo has supported the deployment of more than 16,000 Zalo Official Accounts of State agencies and public utilities units.

*Zalo and Zalopay contribute to support people in the North to fight floods*

During Typhoon Yagi alone, Zalo supported the Department of Dyke Management and Natural Disaster Prevention and Control to send more than 143 million messages updating information and instructions on storm and flood prevention. Zalo also quickly turned on the Zalo SOS feature to help people in provinces affected by the storm update their personal status. In just 10 days, Zalo SOS recorded about 1 million people updating their safety status, 151,000 people connecting for support, and 87,000 people making emergency contacts. With Typhoon No. 6 (Typhoon Tra Mi), Zalo continued to support the National Steering Committee for Natural Disaster Prevention and Control to send more than 14 million messages to prevent and avoid the storm.

Focus on commercializing AI

Following the success of the first AI Cloud Data Center in Southeast Asia in Bangkok, generating tens of millions of USD in revenue, GreenNode - a unit of VNG Digital Business - has continued to launch innovative AI business models for regional businesses. GreenNode's solutions, from infrastructure to platform, help small businesses save significant costs in AI training.

Zalo AI has also continuously made its mark with AI products with high commercial applications. In October 2024, the generative artificial intelligence (genAI) technology developed by Zalo AI supported VIB International Bank to issue credit cards with personalized design features, reaching more than 4,000 cards applied after only 2 days. More than 5 million Zalo AI cards have also been created and sent by users on occasions such as October 20, showing the great potential of personalized AI products in the Vietnamese market.

In addition, the AI Artian graphics platform developed by the VNGGames team has just launched version 2.0, providing more accurate and suitable results, shortening the time to create visual ideas by 30%, reducing the time to create illustration models by 50% and allowing video trailers to be created in just a few minutes.

Announced cooperation with many major partners

In the Online Games segment, VNGGames has continuously cooperated with leading names in the global gaming industry, consolidating its position as one of the leading game publishers in the region. Specifically, in August, VNGGames announced the establishment of a joint venture with NCSOFT (Korea) to exclusively publish NCSOFT's blockbuster games across Southeast Asia; officially released Roblox - VNG and aimed to build a creative and safe gaming community in Vietnam. VNGGames also signed a cooperation agreement with Riot Games on the implementation of the League of Legends (LMHT) eSports plan in 2025, aiming for a large-scale LMHT tournament across Asia - Pacific, gathering the top teams in the region, including Vietnam.

In September, Zalopay deployed the Multi-function Zalopay QR payment code for COD orders of BEST Express in 63 provinces and cities nationwide, bringing convenience and safety in payment for users, retailers and delivery drivers.

Outstanding awards in Q3/2024:

In September 2024, VNG was honored in the category of Leading Tech Firm in Vietnam 2024 by World Business Outlook magazine thanks to its impressive business results.
Zalopay payment platform was honored with the award "Outstanding fintech company"; Zalopay QR Multi-function payment solution was honored with "Product of the Year - Top 100 innovative products and services" (POY); "Digital transformation products and solutions for the community" (VDA).
On September 5, GreenNode and VNG Cloud were honored at the Asian Technology Excellence Awards 2024 (Bangkok, Thailand) for their superiority in cloud computing infrastructure technology and AI.
On October 25, Zalo AI was honored as “Enabling Technology Company of the Year” at the MMA Smarties 2024 awards ceremony, thanks to its successful promotional campaign in collaboration with Pepsi on the occasion of Tet 2024 with more than 100 million personalized AI Avatars created by Zalo users.

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(1) Bookings is a non-GAAP performance indicator used by VNG to evaluate the performance of the Online Games segment. This indicator reflects the amount of money that users have spent during the period applied for calculation.
(2) Number of quarterly active users, calculated by taking the average of QAUs of the quarters in the calculation period.
(3) Monthly active users, determined by the number of active users during the last 30 days of the calculation period.
(4) Average daily number over the last 30 days of the calculation period.
(5) (Loss) Adjusted net operating income is a non-GAAP financial metric calculated by removing the effects of changes in deferred revenue and related expenses, and non-operating items, from the reported operating loss.