FPT - Strong profitability led by Software Outsourcing segment - Earnings Flash
  • 2023-04-19T00:00:00
  • Company Research

FPT released its preliminary Q1 2023 results, including revenue of VND11.7tn (USD499mn; +20% YoY) and NPAT-MI of VND1.5tn (USD64mn; +21% YoY). These results fulfilled 22% and 24% of our respective revenue and NPAT-MI forecasts and are broadly in line with our expectation for FPT to experience strong earnings growth that is backed by its core businesses: IT Services, Telecom Services and Education. Overall, we see no material risk to our current forecasts, pending a fuller review. 


Software Outsourcing (SO): Revenue +32% YoY; PBT +33% YoY. SO’s PBT margin expanded by 20 bps YoY to 16.4% in Q1 2023, which we mainly attribute to a larger revenue contribution from digital transformation (DX) services. In Q1 2023, DX revenue advanced 28% YoY and contributed 39% to SO revenue, per our estimate. In addition, new global SO contract value jumped 44% YoY in Q1 2023 to VND10.2tn (USD434mn), which bodes well for future growth. 


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