FPT’s profit increased by 41% in 2017

By the end of 2017, FPT recorded consolidated sales of VND 43.8 triillion (USD 1.9 billion), up by 8% y/y. Profit before tax increased 41% y/y to VND 4.2 trillion (USD 187.4 million).

Profit after tax reached VND 3.5 trillion (USD 155.3 million), up 37% y/y. Impressive growth of FPT in 2017 mainly came from good business results and profit from the divestment of FPT Retail and FPT Trading.

Profit after tax of parent company increased by 47% to VND2.9 trillion (USD 129 million) and earnings per share (EPS) reached VND 5,222 (USD 0.23), a 50% increase compared to 2016.

Foreign markets continue to be FPT’s bright spot in 2017. Photo: FSK.

Previously, on December 18, 2017, FPT has divested its stake in FPT Retail and FPT Trading to less than 50%. Specifically, FPT’s ownership in FPT Retail and FPT Trading is 47% and 48%, respectively. These units become affiliated companies instead of FPT’ subsidiaries. Accordingly, FPT’s core business consists three main areas including Technology, Telecommunications and Education.

Technology and Telecommunications continue to be the two main business divisions contributing most to the corporation’s profits. Technology sector recognized revenue and profit before tax of VND 11 trillion (USD 488 million), up by 11% and VND 1.1 trillion (USD 50 million), up by 3%, respectively in comparision with 2016.

Telecommunications revenue increased 15% y/y to VND7.6 trillion (USD 337.3 million). Meanwhile pre-tax profit reached VND 1.2 trillion (USD 54 million), up slightly by 2% due to the impact from the establishment of a public-utility telecommunication fund and commercial fees.

With the contribution of nearly one third to the total pre-tax profit, globalization continues to be an important growth motivation for FPT. In the end of 2017, FPT’s overseas market recorded positive results with VND7.2 trillion (USD 317.5 million) in revenue, up 18% y/y and pre- tax profit of VND 1.2 trillion (USD 53.2 million), up 29% y/y.

Globalization revenue mainly comes from software exports of developing markets such as Japan, the US and Europe. Specifically, the software export segment recorded revenue and profit growth of 20% and 25% respectively compared to 2016. In 2017, FPT also marked in the Japanese market with valuable software contracts worth USD 36.5 million- the largest contract of FPT Software in international market in nearly 20 years.

In 2018, FPT aims to reach VND 21.9 trillion (USD 965.7 million) as it will not include sales of Distribution and Retail. This revenue will increase 11% over the same period of 2017.

Regarding the profit before tax plan in 2018, FPT plans to merge under the proportion of ownership of Distribution and Retail. Accordingly, pre-tax profit of FPT in 2018 will reach VND 3,484 billion (USD 153.6 million), an increase of 18% compared to 2017.

Source: Chungta.vn