Vietjet achieves good 1Q profit on the back of strong air transport growth
KUALA LUMPUR: Vietjet Aviation Joint Stock Company recently announced its consolidated financial statement for the first quarter of 2018 (1Q18), recording a significant growth rate that exceeded the company’s expectations.
Accordingly, revenue for 1Q2018 stood at 12.56 trillion dong, an increase of 146 per cent year-on-year thanks to the growth in passenger air transport, ancillary and saleand-leaseback revenue.
Furthermore, due to the expansion of its fleet along with the opening of new international routes, air transport revenue reached 6.03 trillion dong, an increase of 52 per cent year-on-year and 10 per cent higher than the company’s target.
This has increased Vietjet’s core business profit by 74 per cent yearon-year to nearly 737 billion dong. Ancillary revenue also increased by 1.82 trillion dong, an increment of 64 per cent year-on-year.
In 1Q18, Vietjet operated 28,830 safe flights with a technical reliability of 99.7 per cent, marking one of the highest safety performance indicators for flight as well as ground operations in the region. The airline’s on-time performance in the first quarter stood at 83.4 per cent.
During this period, Vietjet also announced plans to open international routes to India and Australia in line with its international flight network expansion strategy after achieving full coverage in the domestic market.
Vietjet was recently awarded the title of top fastest growing airline in the region by Changi Airport.
The positive results in revenue growth contributed significantly to the company’s gross profit of 1.81 trillion dong, a 135 per cent increase year-on-year. At the same time, sales and management costs increased at a lower rate compared to revenue growth.
Therefore, Vietjet’s profit before tax in this quarter stood at 1.48 trillion dong, a 254 per cent increase compared to 1Q17. After-tax profit of the parent company’s shareholders stood at 1.36 trillion dong, a 263 per cent increase. Earnings per share in this quarter was 3,026 dong, one of the highest EPS in the stock market.
In comparison with 2018’s target of 50.97 trillion dong in revenue and 5.80 trillion dong in profit before tax, the results achieved in 1Q contributed 25.5 per cent to the overall target for the year.