Airports Corporation of Vietnam reports losses for the first time
AVC is managing 22 airports and up to 65% of its revenue comes from the sale of duty-free goods at airports.
AVC’s net revenue in the second quarter reached VND3,263 billion. However, the cost of sales amounted to VND1,900 billion. Along with that, the financial costs was up to VND1,400 billion, accounting for over 40% of net sales. These are the main reasons affecting the business results of ACV.
In the second quarter financial report, ACV said that losses caused by exchange rate difference is VND1,379 billion, accounting for 98% of the financial cost.
Since 2015, ACV’s profit has significantly reduced due to losses from exchange rate differences and the increase of financial costs.
By late June 2016, ACV had JPY70.6 billion yen loan, which was used to build terminal T2 at Noi Bai International Airport and the new international passenger terminal at Tan Son Nhat Airport.
ACV was one of the key enterprises of the Vietnam aviation industry, which manages all civil airports in the country.
ACV was founded in early 2012 through the merger of the airports corporation of the Northern, Central and Southern regions.
Since then ACV had not reported quarterly losses until now. Its annual net profit between 2012 and 2015 ranged from VND1,500 billion to VND2,500 billion.
ACV has been operating as a joint-stock company since April 2016 after its IPO in late 2015.
This firm is managing 22 airports and up to 65% of its revenue comes from the sale of duty-free goods at airports.
This year ACV planed to obtain sales of VND12,000 billion and pretax profit of VND2,056 billion.
In July this year ACV proposed to raise service fees at airports but the proposal has not been approved by the Ministry of Transport.
US$1 = VND22,300