Vietjet reports Q1 profit of over VND1,480 billion
Vietjet Aviation Joint Stock Company (HOSE code: VJC) recently announced its consolidated financial statement for Q1 2018, recording a significant growth rate that exceeded the company’s expectations.
Accordingly, revenue for Q1 2018 stood at VND12,560 billion, an increase of 146% year-on-year thanks to the growth in passenger air transport, ancillary and sale-and-leaseback revenue.
Furthermore, due to the expansion of its fleet along with the opening of new international routes, air transport revenue reached VND6,035 billion, an increase of 52% year-on-year and 10% higher than the company’s target. This has increased Vietjet’s core business profit by 74% year-on-year to nearly VND737 billion. Ancillary revenue also increased by VND1,825 billion, an increment of 64% year-on-year.
In Q1 2018, Vietjet operated 28,830 safe flights with a technical reliability of 99.7%, 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%.
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 VND1,810 billion, a 135% 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 VND1,480 billion, a 254% increase compared to Q1 2017. After-tax profit of the parent company’s shareholders stood at VND1,366 billion, a 263% increase. Earnings per share in this quarter was VND3,026, one of the highest EPS in the stock market.
In comparison with 2018’s target of VND50,970 billion in revenue and VND5,806 billion in profit before tax, the results achieved in Q1 contributed 25.5% to the overall target for the year.
As of 31 March 2018, Vietjet’s undistributed profit after tax was VND6,724 billion. The company will pay a cash dividend of 10% on 25 May to its shareholders and is in the midst of finalising necessary procedures at the State Securities Commission of Vietnam to settle the remaining 20% dividend of 2017 by shares. Earlier last week at the 2018 Annual General Shareholders Meeting, the shareholders also agreed with the plan to pay 50% dividends in 2018.