FPT profit up a whopping 30 pct

By Minh Son   January 31, 2019 | 01:04 am PT
FPT profit up a whopping 30 pct
A woman goes past the FPT's headquarters in Hanoi. Photo by Reuters
Vietnamese technology giant FPT has reported profit before tax of VND3.85 trillion ($165.95 million) in 2018, soaring 30 percent year-on-year.

Revenues were 6 percent higher than the target at VND23.21 trillion ($1 billion).

FPT’s technology segment reported profit before tax of VND1.52 trillion ($65.52 million) on revenues of VND13.4 trillion ($581.32 million), respectively up 34 percent and 21 percent.

Revenue from telecom operations revenue and profit rose by 15 percent and 19 percent to VND8.83 trillion ($383.12 million) and VND1.46 trillion ($63.35 million).

Despite the global economic volatility last year, FPT’s exports topped VND9.1 trillion ($394.84) while profits before tax were worth VND1.47 trillion ($63.79 million), up 26 percent and 27 percent.

Foreign markets accounted for 39 percent of revenues last year, up from 16 percent in 2017.

Software exports increased by 35 percent to over VND8.4 trillion ($364.47 million).

At the annual general meeting last year, FPT chairman Truong Gia Binh said digital transformation is the company’s next strategic goal in the software export area.

Exports of digital transformation services fetched nearly VND1.7 trillion ($73.74 million), up 31 percent and accounting for a fifth of software exports. The company targets increasing this figure from the current $100 million to $1 billion in the next five years which will account for 40 percent of total revenues.

Binh said: "We want to be different from Indian corporations which are following the traditional outsourcing path. FPT wants to be the leader in digital transformation."

Last year FPT announced the acquisition of a 90 percent stake in Intellinet Consulting (Intellinet), one of the fastest growing technology consulting companies in the U.S.

The deal was estimated to be worth $40-50 million, of which FPT has paid $30 million and pay the rest based on the company's performance in the next three years.

With Intellinet, the company expects to boost its operations in the U.S. market. The deal paves the way for FPT to become a global provider of digital transformation services.

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