MobiFone posts 52% surge in revenue, prepares for privatisation

8 Feb 2010

Vietnam’s second largest wireless operator by subscribers, MobiFone, has reported a 52% year-on-year rise in revenue in the year ended 31 December 2009 to reach VND27.4 trillion (USD1.48 billion), Bloomberg reports. The company’s pre-tax profit fell 3.4% compared to 2008 to VND5.6 trillion, while net income is expected to be reported next month. MobiFone has said it is targeting revenue of VND34 trillion in 2010. According to a statement from the company, MobiFone ‘is quickly preparing for the privatisation process’ this year in an attempt to improve competitiveness. In June 2008 it was revealed that a 15% tranche would be sold to a strategic investor and 15% to the public via an initial public offering (IPO). A further 19% may be sold after the IPO, reducing state-owned Vietnam Posts and Telecommunications’ (VNPT’s) stake to 51%. In August 2008 MobiFone hired Credit Suisse Group to act as financial adviser for an IPO, which later valued the operator at around USD2 billion.