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Vietjet announces its audited financial statement for 2018: Core business continues to increase 49%, international revenue surpassed domestic revenue

April 15, 2019 Financial No Comments Email Email

Fast growing new-age carrier Vietjet is well positioned to continue its rise in the region as the airline continued to chart a year of high and sustainable growth in 2018. comes following the announcement of the airline’s audited financial statements for 2018 which exceeded its annual plan.

According to Vietjet Aviation Joint Stock Company’s (HOSE code: VJC) audited business results for 2018, the company recorded a total revenue of VND53,577 billion (MYR9,501 million) and VND5,816 billion (MYR1,031 million) profit before tax. The airline’s total number of passengers transported in 2018 reached 23 million, leading Vietnam’s domestic market with 66 international routes, accounting for nearly two-thirds of its entire flight network.

When listing at the beginning of 2017, Vietjet set its growth plan for three years (2017-2018-2019) with the profit after tax target of 2017 and 2018 reaching VND7,801 billion (MYR1,383  million). The results exceeded expectations when the new aged carrier achieved VND10,400 billion (MYR1,844 million) profit after tax in only two years.​

Earnings per share (EPS) reached VND9,850 (MYR1.746), while Return on Equity (ROE) was 43.3% and Price to Earnings Ratio (P/E) was attractively at 11.4.

Vietjet also maintains the ratio of dividend payout at 50% per year, including shares and cash dividends as committed when the airline was first listed. With the positive business results recorded in 2018, Vietjet expects to pay 55% dividend for the fiscal year, 5% higher than the previous approved plan.

Remarkably, in the context of rising oil prices by 30%, air transport revenue reached to VND33,779 billion (MYR5,990 million) and air transport profit before tax was VND3,045 billion (MYR540 million), increasing respectively by 49.8% and 48.9% over the previous year. The impressive figures recorded are a testament of the airline’s ability to grow revenue and its good cost management. It can also be seen that Vietjet’s strong growth in 2018 comes from its core business of air transport services.

Ancillary revenue, which has a high profit margin, was VND8,410 billion (MYR1,491 million), an increase of 53.5% year on year. The proportion of this segment in total revenue has also increased from 24.5% in 2017 to 25.4% in 2018.

Furthermore, Vietjet also recorded positive financial indicators.

As of 31 December 2018, Vietjet’s total consolidated assets reached VND39,086 billion (MYR6,931 million), an increase of 23.5% year on year; while equity was VND14,038 billion (MYR2,489 million), up 32.5% year on year. The company’s cash balance as of 31 December 2018 was VND7,165 billion (MYR1,270 million).

Debt to equity ratio decreased to 1.78 in 2018 from 1.99 in 2017. Similarly, net debt per equity ratio was very good, with a sharp decrease to 0.39 in 2018 from 0.71 in 2017.

Vietjet’s strong performance further solidifies its primary position in Vietnam’s aviation market and the airline is also stamping its mark as a growing contender in ASEAN. The airline currently leads the domestic market in terms of transported passengers, while maintaining a continual focus on developing a strong international flight network. In 2018, the airline operated 118,923 flights on 105 routes, including 39 domestic and 66 international routes.

The new-age airline now covers multiple cities across Vietnam, as well as international destinations which include Malaysia, Japan, Hong Kong (China), Singapore, South Korea, Taiwan (China), Thailand, Myanmar, Cambodia and China. Vietjet’s aircraft also operates at Dubai and Doha airports.

The international network expansion strategy of Vietjet was highly promoted in order to increase the foreign currency collection from ticket sales and to take advantage of lower fuel price at international markets. The proportion of international revenue surpassed domestic revenue and reached 48% of total air transport revenue. Load factor for the year reached to over 88.06%, the technical reliability was 99.64% and the on-time performance (OTP) stood at 84.2%.

In 2018, Vietjet began to receive and operate the new generation A321neo aircraft which could save up to 16% fuel cost, contributing to decreasing Vietjet’s operating costs in the coming years. Vietjet’s fleet as of 31 December 2018 was one of the youngest in the world with an average age of 2.82 years old.

Vietjet also has been successfully qualified with “IOSA International Air Safety” 3rd certificate in September 2018. Vietjet’s safety-operating indicators have been among the leading airlines in the Asia-Pacific region and awarded the highest ranking for safety with 7-stars in 2018 by the world’s only safety and product rating website

Investing in the sustainable development of the airline, in 2018, the Vietjet Aviation Academy was completed and its flight simulator complex (SIM) in partnership with Airbus was approved by the European Aviation Safety Agency – EASA, certifying European standards – the world’s leading aviation standards. At the beginning of November 2018, on the occasion of the official visit of French Prime Minister to Vietnam, Vietjet launched the Aviation Academy.

As of the end of last year, SIM provided approximately 1.000 training hours. The Academy conducted 924 courses for 21.611 trainees, including 157 pilot training courses, 127 cabin crew training courses and 128 engineer training courses.

Besides, Vietjet was also awarded many prestigious titles in 2018 including the Labor Medal award; Vietnam’s top 50 listed companies and top 40 most valuable brands by Forbes Magazine; Top 50 airlines for healthy financing and operations by AirFinance Journal; Top 50 largest taxpayers in Vietnam; 50 best performing companies; Top 100 best working places in Vietnam and Asian best flight attendant wardrobe.

Vietjet’s continuous and sustainable development in the past few years coupled with its strong business results which exceeded the 2018 plan continues to bring value and efficiency to investors, as well as create strong momentum in fulfilling the airline’s mission of providing millions of travellers with many more options for flying throughout the region, ultimately becoming the preferred regional and international airline.

*All MYR figures were obtained using a conversion rate of 1 MYR = 5,638.85 VND as of 11 April 2019

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