Profit from overseas markets up 40 percent on year

Ending the financial year 2016 (FY2016), FPT recorded consolidated revenue of VND 40,545 billion, up 1.4% versus FY2015. Profit before tax (PBT) was up 6% year on year (YoY) to VND 3,014 billion. Profit after tax (PAT) was VND 2,576 billion, up 6% YoY.

PAT attributable to parent company’s shareholders and EPS both were up 3% YoY, to VND 1,991 billion, and VND 3,925, respectively.

Technology and Telecom sectors sustained the double-digit growth, accounting for 76% of consolidated PBT

Technology and Telecom were the two key contributors to the consolidated profit with 76% contribution. Technology sector recorded revenue and PBT of VND 9,952 billion and VND 1,102 billion, up 16% and 19% YoY, respectively.

Telecom sector had its revenue up 22% YoY, to VND 6,666 billion, and PBT up 15% to VND 1,198 billion.

In the Distribution and retail sector, the retail segment continued to be a highlight in FY2016 with revenue up 35% YoY, and PBT up 44% YoY. Meanwhile, the distribution business has recorded a drop in revenue and profit due to Apple’s change in distribution policy and Microsoft’s closure of Lumia phone business.

The Education segment continued to perform reasonably with 18% surge in number of enrolments versus 2015, in which the university has recorded the highest growth of 36% YoY in terms of number of enrolled students.

Overseas markets had profit up 40% YoY, continuing to be a key growth driver going forward

Contributing a third of the consolidated profit before tax, the overseas markets continued to be a key growth driver of FPT. Ending the FY2016, FPT’s overseas market has recorded a healthy growth with revenue increased by 26% YoY to VND 6,121 billion, and PBT up 40% YoY to VND 936 billion. Overseas performance mainly came from two segments. Firstly, it is the software outsourcing segment which focuses on developed markets such as Japan, South Korea, the US, etc. and recorded revenue up 26% and 35% in FY2016, respectively. Secondly, it was the software solutions segment which focuses on developing markets such as Cambodia and Bangladesh and successfully implemented the Bangladesh’s integrated income tax administration system (BITAX), demonstrating FPT’s capabilities in delivering software solutions in overseas countries, opening up more opportunities to win more contracts going forward. In FY2016, the company has also signed another two sizable contracts in such a South Asian country which amounted to USD 17.9 million.