Actively coping with Covid-19, FPT achieved profit's growth of 14%

During the first half of 2020, FPT recorded total revenue and profit before tax (PBT) of VND 13,611 billion and VND 2,428 billion, up 9% and 14% YoY. PBT margin of FPT increased by 70 bps to 17.8% compared to 17.1% in 2019.

Profit after tax and profit after tax attributed to parent company’s shareholders posted VND 2,021 billion and VND 1,626 billion. Earnings per share reached VND 2,078, up 14.1% YoY.

Despite the enormous pandemic risks as well as unfavorable global economy, FPT has overcome challenges in both global and domestic market to achieve a positive financial results, especially in core business lines.

Global IT Services, Telecom Services, and Education are the main growth drivers of FPT

In many core foreign markets of FPT, the governments have implemented social distancing and pandemic lockdown, making it difficult to approach clients. Hence, FPT has moved to online channels to communicate with clients, connected experts across the Company, and provided technology solutions for clients to optimize costs, leveraging on Vietnam’s successful containment of the pandemic as a unique selling point.  Therefore, revenue and PBT from Global IT Services grew by 18% and 21% YoY, accounted for 43% and 37% of the Company’s. PBT margin of Global IT Services increased 40 bps from 15.0% to 15.4%. Total value of newly signed contracts increased 16% YoY. In particular, FPT outbid other global competitors to become the strategic partner of a leading automotive company in the US in a $20 million IT project. 

In the first six months of the year, revenue from digital transformation of FPT recorded VND 1,773 billion, up 65% YoY, signaling how crucial it is for businesses to adopt digital technology during COVID-19. FPT also introduced the complete digital solutions portfolio to help enterprises recover after pandemic by optimizing connectivity, automatizing process, innovating, and enhancing security.

In the domestic market, having the technology advantage, FPT actively implemented online working and work-from-home policy and increased communication with clients via online channels to maintain business continuity and minimize negative impacts on business operation. The business lines that provide essential needs such as Telecom Services and Education operated stably throughout the lockdown period. Telecom Services’ revenue and PBT posted VND 5,217 billion and VND 833 billion, up 12% and 22%. In which, broadband’s revenue and PBT increased by 10% and 18%. FPT also sidestep disruption of teaching, learning, and admission activities.

Digital transformation services and solutions: opportunity after the pandemic

COVID-19 accelerates the demand for digital technology. In the first six months of 2020, revenue from digital transformation recorded VND 1,773 billion, up 65%, signaling the importance of digital technology and solutions for enterprises in the new environment.

For the domestic market, FPT developed digital solutions to help businesses recover and thrive after the pandemic by optimizing costs, automatizing process, innovating, and enhancing security. Revenue from Made-by-FPT products in the domestic market surged by 28% YoY.