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FPT's 2017 pre-tax profit up 41%

Released at: 17:30, 31/01/2018

FPT's 2017 pre-tax profit up 41%

Photo: FPT

Consolidated revenue up 8% in FY2017 and after-tax profit 37%.

by Do Huong

FPT recorded consolidation revenue of VND43.8 trillion ($1.93 billion) for FY2017, up 8 per cent against FY2016, while pre-tax profit rose 41 per cent to VND4.25 trillion ($187.1 million) and after-tax profit was VND3.5 trillion ($154.1 million), up 37 per cent.

Profit increased sharply thanks to the good performance of business lines and gains from the partial sale of two companies: FPT Retail and FPT Trading.

After-tax profit attributable to the parent company’s shareholders was up 47 per cent, to VND2.9 trillion ($127.7 million), while earnings-per-share (EPS) was VND5,122.

FPT cut its ownership in FPT Retail and FPT Trading to 47 per cent and 48 per cent, respectively, on December 18, meaning they are no longer subsidiaries but are associates. FPT’s businesses are now grouped into three main segments: Technology, Telecom, and Education and Others.

Technology and Telecom were the two key business segments making the largest contribution to FPT’s profit in 2017. Technology recorded revenue and pre-tax profit of VND11.08 trillion ($487.8 million) and VND1.1 trillion ($48.4 million), respectively, increases of 11 per cent and 3 per cent compared to 2016.

The Telecom sector saw revenue jump 15 per cent to VND7.6 trillion ($334.8 million) but pre-tax profit was VN1.2 trillion ($52.8 million), down 2 per cent due to provisions for the public-utility telecommunication service fund and license fee.

Contributing one-third of consolidated after-tax profit, overseas markets continued to be a key growth driver for FPT. Overseas markets recorded healthy growth, with revenue rising 18 per cent to VND7.2 trillion ($317.2 million) and pre-tax profit up 29 per cent to VND1.2 trillion ($52.8 million).

Overseas performance mainly came from software outsourcing, which focuses on developed markets such as Japan, the US, and Europe. Software outsourcing recorded revenue and pre-tax profit increases of 20 per cent and 25 per cent, respectively.

FPT made a strong impression in the Japanese market in FY2017 with the signing of a software contract worth $36.5 million; the largest in its nearly 20 years of globalization.

FPT will no longer consolidate the revenue of the retail and distribution sector in FY2018. The revenue plan was VND21.9 trillion ($96.5 million), up 11 per cent if comparable.

In pre-tax profit, FPT will consolidate the profit of the retail and distribution sector based only on the proportion of ownership. FPT’s pre-tax profit plan was VND3.5 trillion ($154.2 million), up 18 per cent if comparable.

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