Profit before tax in the first quarter of 2020 increased 19%
In Q1 2020, FPT has achieved the revenue and profit before tax (PBT) growth rates of 17.0% and 18.9% YoY, equivalent to VND 6,631 billion and VND 1.142 billion. The performance surpassed the initial guidance by 2%, improving the PBT margin to 17.2% (compared to 16.9% of Q1 2019).
Profit after tax (PAT) and PAT attributed to parent company’s shareholders reached VND 937 billion and VND 747 billion, up 18.0% and 19.3% YoY, respectively. Therefore, EPS was VND 1,101 per share, up 18.7% YoY.
Financial performance by service: PBT of Global IT services and Telecom services surged by 27% and 29% respectively
Contributing a major proportion of revenue and profit, Global IT services and Telecom services enjoy the respective PBT of VND 425 billion and VND 401 billion, up 27% and 29% YoY, equivalent to 103% guidance. Moreover, as one of a few companies with both consulting and implementation capability, FPT has engaged in many large digital transformation projects, recording VND 729 billion in revenue in Q1 2020, up 55% YoY.
Since many local companies are impacted severely in the pandemic, revenue and profit of the Domestic IT services and Online advertising decreased due to local cut down on budget. Therefore, FPT is rolling out online sales initiatives with new product portfolio to meet changing demand of clients better.
Financial performance by market: APAC and US markets leading the growth
The overseas market has the revenue of VND 2,891 billion, up 26% YoY. With a surge of 59% YoY, revenue in APAC market is VND 450 billion, accounted for 16% of the overseas revenue. The US market also records the growth rate of 28%, contributing VND 675 billion to the top line. The Japan and EU markets enjoy the growth rates of 19% and 17% respectively.
The performance of Q1 2020 has not been impacted greatly by COVID-19. However, due to the unpredictability of the virus outbreak, the operation of FPT is likely to be disrupted in Q2 2020. The Management of the Company has activated wartime working mode and prepared different scenarios based on the projection of the pandemic, ensuring the business continuity and sidestepping risks.