Vietravel suffers more than $3 million in losses over first quarter

Local tourism giant Vietravel continued to suffer in the first quarter of this year from the carry-on effects of the COVID-19 pandemic.
vietravel suffers more than 3 million in losses over first quarter
Vietravel keeps ailing from COVID-19

Vietnam Travel and Marketing Transport JSC (Vietravel) has just published its financial report for the first quarter of 2021,showing a 65 per cent drop in revenue on-year to VND276.6 billion ($12 million). Efforts to reduce operating costs were not enough to counter market impacts, resulting in after-tax loss of VND72.8 billion ($3.17 million).

With the health crisis not quite over, with occasional flare-ups in Vietnam, Vietravel’s performance has been poor. Earnings from travel service reduced to VND72 billion ($3.13 million) from VND535 billion ($23.26 million) over the same period last year. Earnings from the sale of plane tickets also dropped to half, to VND70.6 billion ($3.1 million).

As of the end of March, Vietravel saw negative after-tax profit of VND102.2 billion ($4.44 million), VND65.2 billion ($2.83 million) more than in the previous year. The sum also exceeded its equity of VND102 billion ($4.43 million). Operation costs also rose by VND180 billion ($7.83 million) against the beginning of the quarter to VND2.042 trillion ($88.8 million), including VND1.94 trillion ($84.35 million) in debts.

The COVID-19 lockdown reduced the company’s revenue by 73.3 per cent last year, resulting in a full-year deficit of VND90 billion ($3.9 million).

By Van Anh

Nguồn: Vietnam Investment Review

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