Vietravel suffered a loss for the third quarter in a row, and struggled because of the second wave of COVID-19

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Three consecutive quarters of losses have blown away most of Vietravel’s accumulated profits so far when on June 30, the undistributed after-tax profit of the company was only VND 827 million.

Vietravel Tourism and Transport Transport Joint Stock Company (Vietravel) has published its consolidated financial statements for the second quarter that recorded the third consecutive quarter of losses.

Vietravel lỗ quí thứ ba liên tiếp, lại lao đao vì làn sóng COVID-19 thứ hai - Ảnh 1.

VTR’s business data for the second quarter and the first six months of the year (Source: HK compiled from financial statements).

In the second quarter, Vietravel reached 205 billion dong in net revenue, down 91% compared to the same period in 2019. After deducting the cost price, the company’s gross profit was only 5 billion dong.

Vietravel lỗ quí thứ ba liên tiếp, lại lao đao vì làn sóng COVID-19 thứ hai - Ảnh 2.

Source: Financial statements for the second quarter

In the revenue structure, the travel and tourism segment only brought VND 127 billion, down 93%. This is also a major source of revenue for Vietravel.

Besides, air ticket sales also dropped by 92% to less than 9 billion dong.

Despite increasing financial revenue and reducing costs over the same period, at the end of the second quarter, Vietravel still lost 38 billion dong. This is the third consecutive quarter loss of Vietravel.

In the first 6 months, the company saw 994 billion dong revenue, down by 72% and saw a loss of 80 billion dong while the same period saw a profit of 30 billion dong.

Vietravel lỗ quí thứ ba liên tiếp, lại lao đao vì làn sóng COVID-19 thứ hai - Ảnh 3.

Source: HK compilation.

As a business operating in the field of domestic and international travel business, Vietravel is seriously affected by the COVID-19 epidemic.

After more than 3 months without a new case of COVID-19, on July 25, Vietnam recorded a positive case in Da Nang that triggered a second wave of disease.

The thought, the disease was completely extinguished in Vietnam, the plan to stimulate domestic tourism was launched to quickly recover the economy but the outbreak came back making the economy, especially tourism industry. The calendar is once again reeling.

In 2020, Vietravel expects revenue of 3,065 billion dong and pre-tax profit of nearly 23 billion dong. So, after half a year, the company only reached 32% of the revenue target and EBT of 76 billion, far exceeding the expected.

Three consecutive quarters of losses have blown away most of Vietravel’s accumulated profits so far when on June 30, the undistributed after-tax profit of the company was only VND 827 million.

As of June 30, Vietravel’s total assets was 1,934 billion dong, down 11% from the beginning of the year. Total cash, cash equivalents and term deposits in the second quarter of the company were 871 billion VND, accounting for 45% of asset structure.

Vietravel’s total borrowings as of June 30 was VND 989 billion, up slightly from the beginning of the year. In which, nearly 691 billion dong was borrowed via bonds and the rest was from banks.

The COVID-19 pandemic also caused Vietravel to postpone the flight plan of Vietravel Airlines with chartered capital of VND 700 billion despite being approved for establishment policy.

The Ministry of Transport proposed in the immediate future to focus on restoring the domestic and international air transport market, removing difficulties for operating Vietnamese airlines. At the same time, the establishment of a new airline will be considered after the recovery of the aviation market (expected in 2022). Originally planned for early 2021, the airline may fly its first commercial flight.

However, the business loss may affect the flight plan of Vietravel Airlines when the economy has not recovered even though the disease has been controlled.

As of June 30, Vietravel has poured nearly VND 27 billion into the cost of an aviation project at Viet Travel Aviation Company Limited.

Source: vietnambiz.vn