How did NTL avoid losses?

NTL has just gone through a forgettable business quarter.

According to its newly released Q2/2025 financial report, the company recorded revenue of just over VND 6 billion, a staggering drop from more than VND 1,375 billion in the same period last year—nearly 100% decline.

Notably, revenue from its core real estate business contributed just over VND 3 billion in the quarter, compared to over VND 838 billion in Q2/2024.

Although cost of goods sold also fell by 98%, it remained higher than gross revenue, resulting in a gross loss of VND 4.5 billion—compared to a gross profit of over VND 845 billion in the same quarter last year.

The lone bright spot in the company's financial picture came from financial income, which surged 161% year-over-year to nearly VND 21 billion. This windfall was the only reason NTL avoided a net loss, ending the quarter with a slim profit of nearly VND 2 billion—down nearly 100% from the VND 647 billion profit posted in Q2/2024.

Company leadership attributed the dismal results to delays in legal procedures for ongoing real estate projects, which prevented them from recording any revenue during the period. As a result, all income came from financial activities.

Six-Month Overview: Revenue and Profit Both Down 99%

In the first six months of 2025, NTL’s net revenue dropped 99% compared to the same period in 2024, totaling only VND 9.6 billion. Net profit also plummeted 99% to VND 8.3 billion.

These results may not have surprised the company, as NTL set a very modest full-year business plan for 2025: VND 80 billion in revenue and VND 24 billion in post-tax profit, down 95% and 96% respectively from 2024. With its half-year performance, the company has fulfilled 54% of its revenue target and 35% of its profit goal.

NTL’s slump stands in stark contrast to the broader Hanoi real estate market, which has shown signs of recovery in the first half of 2025. According to MBS Securities, supply has improved and absorption rates are high despite rising prices.

MBS noted a clear divergence between high-rise and low-rise segments. While high-rise supply stagnated after consistent growth, the low-rise market saw continued increases in both supply and sales. Even large-scale low-rise projects recorded strong absorption in a short period.

Primary prices for high-rise units remained stable, with new launches priced attractively. Meanwhile, low-rise prices continued their upward trend from 2024, reaching new highs. Despite higher prices, demand remained strong.

For the high-rise segment, MBS estimates about 31,700 new apartments will be launched in Hanoi in 2025, with steady absorption expected as new supply continues in the coming quarters. For the low-rise segment, further expansion is projected in suburban areas like Dan Phuong, Bac Tu Liem, and Van Giang (Hung Yen, bordering Hanoi).

In Q2/2025, the Hanoi People's Committee approved pilot projects under Resolution 171 (171/2024/QH15 dated November 30, 2024), allowing developers to negotiate land-use rights on agricultural and non-residential commercial land for commercial housing projects—a move previously restricted to residential land only.

According to MBS, “The list of pilot projects covers about 844 hectares with total investment capital of around VND 276 trillion. Once approved, these projects will help meet the growing demand for housing in Hanoi.”

In summary, while NTL is struggling with stalled projects and plunging revenue, the broader market shows signs of resilience and opportunity—if the company can navigate legal and procedural hurdles to capitalize on the favorable trends.