FPT earned VND 4,575 billion in pre-tax profit during the first nine months

20/10/2021

Despite the barriers caused by COVID-19, FPT recorded VND 24,953 billion in sales and VND 4,575 billion in pre-tax profit in the first nine months of 2021, up by 17.9% and 20%, respectively, over the same period last year. Both revenue and profit enjoyed positive growth, with the technology and telecommunications sectors providing the primary impetus.

Thus, after three quarters of 2021, the company has achieved 72% of its revenue target and 74% of its profit target for the year, indicating a fruitful future that it is on track to meet its full-year business objective.

Profitability of domestic IT services bursts

The technology sector (including domestic and international IT services) generated revenue of VND 14,294 billion and pre-tax profit of VND 2,097 billion, up by 22.1% and 30.4% YoY, respectively. The technology sector now accounts for 57% of revenue and 46% of pre-tax profit, retaining its position as the Group's primary business segment.

In the overseas market, sales increased in all of the major markets, especially in the United States and Europe due to high Covid-19 vaccination rates and a steady recovery in economic activity. FPT constantly recorded substantial orders over the first nine months of the year, including 16 projects worth more than USD 5 million each, an increase of 167% over the same period of the previous year.

Revenue from digital transformation reached VND 3,947 billionin nine months, up by 59.6%, thanks to growth in key technologies like Cloud Computing (Cloud), Artificial Intelligence (AI), and low-code.

Overall, the revenue from Global IT services totaled VND 10,415 billion, while profit before tax was VND 1,732 billion, an increase of 18.6% and 22.1%, respectively.

In the domestic market, IT services generated revenue of VND 3,880 billion, up 32.3%, and pre-tax profit of VND 365 billion, up 92.7% YoY. Made by FPT ecosystem generated VND 415 billion in revenue, an increase of 54.9% YoY. This is the result of the company's focus on developing Made by FPT solutions and platforms and honing its ability to provide comprehensive digital transformation products and services to meet the needs of the government, business community, and people, particularly in light of the pandemic's acceleration of the shift to a digital environment.

Notably, FPT launched the FPT eCovax Program to assist cities, organizations, and enterprises in "surviving the storm" of Covid-19 by providing training programs, seminars, technical solutions, orientations, general recommendations to assist local governments, agencies, organizations, and enterprises in strengthening their antibodies and adapting flexibly to any pandemic turns. Nearly 1,000 corporate leaders and several communities have access to seminars, training - seminars, discovered experiences, flexible adaptation solutions, overcoming pandemic obstacles, and firmly developing in the green normal through the FPT eCovax Program. In a short period, approximately 500 businesses have enrolled to use the FPT eCovax product.

Additionally, in the first nine months of 2021, FPT have successfully implemented a project to address the issue of order blocking in the Ho Chi Minh Stock Exchange's trading system (HOSE). As a result of this remarkable achievement, the Ministry of Finance presented FPT with a certificate of merit and convened a meeting to explore the financial industry's potential for information technology application and digital transformation.

The telecommunications services continues to improve its profit margins

The telecommunications sector generated revenue of VND 9,232 billion, an increase of 11%, and pre-tax profit of VND 1,783 billion, a 21,9% increase over the same period last year.

Due to the increased profit from the PayTV segment, combined with the postponement of infrastructure investment due to the complicated situation created by the Covid-19 pandemic, the pre-tax profit margin of the telecommunications services, which includes broadband and other services, continued to improve in the first nine months of 2021, reaching 20.8% and 14%, respectively.

FPT was recognized as Asia Money's most outstanding companyin Vietnam for its excellent financials, leadership, investor relations (IR), and social responsibility initiatives (CSR).