During the first quarter of 2022, FPT's Digital Transformation revenue surged by 96.2%
In the first quarter of 2022, FPT made total revenues of VND 9,730 billion and a pre-tax profit of VND 1,779 billion, respectively increased with 28.3 percent and 27.4 percent, compared to the same time last year, which was mainly driven by the technology and telecommunication segment.
During the same time span, the technology segment expanded by about 40%
The technology segment (including domestic IT services and international IT services) generated revenue of VND 5,593 billion and pre-tax profit of VND 770 billion, up 34.6% and 39.2%, respectively, compared to the previous year. Currently, the technology section produces 57% of sales and 43% of pre-tax profit, maintaining its position as the Group's most prominent business division.
Sales climbed in all areas of international markets, particularly the United States and Asia-Pacific (APAC). Contracts signed with large clients in the United States at the end of 2021 have begun to indicate revenue growth of 60 percent in this market. FPT's revenue increased by 19.7 percent (in Japanese yen) on the Japanese market.
In the first quarter of the year, FPT reported seven significant projects with budgets above $5 million per project, a 75 percent increase compared to the same time in the previous year. The "whale hunting" approach continues to be highly effective, with new registration income on international markets reaching VND 7,057 billion, an increase of 57% compared to the same period.
Focusing on new technologies such as Cloud Computing (up 308 percent), AI /Data Analytics (up 200 percent), and Low-code (up 137 percent), Digital Transformation revenue grew by 96.2 percent during the same period to reach VND 1,648 billion.
The overall revenue of IT services in international markets has reached VND 4,111 billion. The profit before taxes was VND 667 billion, an increase of 29.7 percent and 34.9 percent, respectively, over the same period.
On the domestic market, IT services produced revenues of VND 1,481 billion and pre-tax profits of VND 103 billion, increases of 50.3% and 75.5%, respectively, over the same time period. In particular, made by FPT Ecosystem earned revenue of VND 271 billion, an increase of 104% compared to the previous quarter. Made by FPT ecosystem consists of more than 100 platforms, solutions, products, and services based on core technologies including AI, Blockchain, Cloud, IoT, and Low-code; has broad applicability in many critical fields including e-government, transportation, healthcare, finance, and banking, real estate, telecommunications, education, and manufacturing; and is an industry growth engine FPT's prospective.
Profit margin in the telecommunications sector is consistently increasing
The Telecommunications business produced revenue of VND 3,471 billion, up 18.7 percent, and a pre-tax profit of VND 701 billion, up 21.7 percent, to the first quarter of 2022. Profit from Pay TV continued to rise, leading to expanding the Telecommunication Services segment's profit margin from 18.7 to 19.1 percent.
In the meantime, the Education sector maintained steady development due to strong enrollment outcomes. The revenue for the first quarter of 2022 was VND 961 billion, a 38 percent increase over the same time in the prior year. This critical sector is projected to contribute to FPT's long-term human resource needs as the number of students increases.
On April 7, 2022, FPT Joint Stock Company held the Annual General Meeting of Shareholders (AGM). After achieving good results in 2021, FPT continues to establish a sustainable growth plan, with revenue growing by 19 percent to VND 42,420 billion and profit before taxes increasing by 20.2 percent to VND 7,618 billion. FPT has also resolved to pay a 40 percent dividend in 2022, consisting of 20 percent in cash and 20 percent in shares, in the ratio of 5:1.