Technology continues to have a significant impact on FPT Corporation’s revenue

DNHN - The Technology segment (including domestic and international IT services) continues to play a key role, contributing 60% of the Group’s total revenue and 45% of its pre-tax profit.

FPT Corporation recently announced its business results for the first quarter of 2024. Accordingly, FPT recorded revenue of VND 14,093 billion and pre-tax profit of VND 2,534 billion, up 20.6% and 19.5% respectively year-on-year, in line with the plan set out at the beginning of the year.

Profit after tax for shareholders of the parent company reached VND 1,798 billion, an increase of 20.4%, while EPS (Earning Per Share) reached VND 1,416 per share, a rise of 19.7% year-on-year.

Of which, the Technology segment (including domestic and international IT services) continues to play a key role, contributing 60% of the Group’s total revenue and 45% of its pre-tax profit, equivalent to VND 8,472 billion and VND 1,155 billion, respectively, up 23.8% and 27.5% year-on-year.

Continuing the growth momentum from 2023, in the first quarter of 2024, revenue from the international IT services segment grew by 28.4%, reaching VND 6,999 billion, while pre-tax profit reached VND 1,115 billion, up 25.5% year-on-year. Key markets all maintained high growth momentum, especially in the Japanese market, which despite the depreciation of the yen, still maintained high growth of 44.2% year-on-year. This growth is driven by strong spending on information technology, particularly digital transformation. Notably, with its new position as a global technology company with a billion-dollar valuation, FPT has continuously won 15 major projects (each worth over USD 5 million) in the first 3 months of 2024, mainly concentrated in the Japanese and Asia-Pacific markets.

Thanks to efforts to strengthen cooperation with the government sector, ministries and agencies, and to promote the Cloud Computing and Artificial Intelligence business segment for domestic enterprises, the domestic IT services segment recorded revenue of VND 1,472 billion (up 4.6% year-on-year) and pre-tax profit of VND 41 billion (up 130.1% year-on-year).

The Made by FPT product ecosystem continued its strong growth momentum, recording revenue of VND 498 billion (up 89.3% year-on-year) thanks to its high applicability for both the Enterprise and Government segments.

Telecommunications services recorded revenue of VND 3,885 billion, up 5.1%, and pre-tax profit of VND 805 billion, up 11.4%.

Continuing to expand its presence in provinces and cities nationwide, FPT’s Education segment recorded revenue growth of 26% year-on-year, reaching VND 1,776 billion.

One of FPT’s outstanding activities in the first quarter of 2024 was the implementation of its first M&A transaction in Japan. Accordingly, on March 1, FPT Corporation announced the acquisition of 100% of the capital of Next Advanced Communications NAC Co., Ltd. (NAC) - a Japanese IT services company, doubling its customer base and service portfolio and strengthening its position in this market.

In addition, FPT has announced the establishment of a branch in Dalian, Liaoning Province, China, to provide IT services to customers in Japan and China. In addition, the opening of a branch in Dalian will also help FPT access and recruit technology personnel trained there. It is estimated that the number of IT personnel proficient in Japanese in Dalian is around 200,000.

In the past quarter, FPT also started construction of an educational complex project implemented by FPT Education Organisation in Thanh Hoa, including FPT Thanh Hoa Primary School, Secondary School and High School (or FPT School Thanh Hoa). In parallel with the construction progress, FPT School Thanh Hoa is also operating to welcome the first generation of students for the 2024 - 2025 school year.

Phuong Tu