FPT - 21% YoY earnings growth meets forecast; technology leads profit growth - Earning Flash
  • 2025-01-24T00:00:00
  • Company Research

FPT announced its 2024 results, achieving revenue of VND62.9tn (USD2.5bn; +19% YoY) and NPAT-MI of VND7.9tn (USD313mn; +21% YoY), fulfilling 99% and 101% of our respective full-year projections. These results align with our expectations for 2024, as stronger-than-expected profits from the technology segment compensated for the weaker-than-expected education and others segments. However, we see potential downside risk to our 2025F education forecast, pending a fuller review.

Global IT Services: Revenue +27% YoY and PBT +26% YoY. Digital transformation (DX) revenue surged 37% YoY in 2024, contributing 46% of total global IT revenue and supporting global IT’s PBT margin of 15.4%. Among regions, the EU posted the highest growth at 52% YoY, followed by Japan (+32% YoY) and APAC (+35% YoY). Revenue from the US grew 9% YoY - falling short of our projections. Signed revenue grew steadily at 13% YoY to VND33.6tn (USD1.3bn), with large deals (USD5mn+ value) rising 50% YoY to 48 deals, showcasing robust backlog orders to underpin future growth. 

Domestic IT: Revenue +14% YoY and PBT +21% YoY. Domestic IT revenue growth was driven by the Made-by-FPT product suite, which expanded by 31% YoY. FPT executed several large-scale projects for public sector and banking clients in December 2024, signaling a recovery in Vietnam’s IT spending.

Telecom Services: Revenue +11% YoY and PBT +18% YoY. Telecom services revenue in 2024 benefited from a 12% YoY increase in broadband revenue and a 10% YoY rise in non-broadband business. FPT reported an improvement in PBT margin, which rose by 1.2 ppts YoY to 20.2%, attributed to enhanced profitability in both the broadband and pay TV segments. 

Education: Revenue +15% YoY. The education segment experienced slower growth due to intensifying competition in the higher education market, leading to a double-digit drop in enrollment in 2024, based on our estimates.

FPT’s 2024 results

VND bn 

2023 

2024 

YoY 

2024/ Vietcap’s
  2024F 

Vietcap’s comments

Revenue 

52,618

62,849

19%

99%

 

Technology 

31,449

39,110

24%

100%

 

  - Global IT 

24,288

30,953

27%

98%

* Revenue from Japan/APAC/EU/US market grew 32%/35%/52%/9% YoY, respectively.

* In 2024, revenue from DX services rose 37% YoY (46% of global IT revenue), while new signed revenue increased 13% YoY and large deals (valued at USD5mn+) increased 50% YoY to 48 deals.

  - Domestic IT 

7,161

8,157

14%

107%

 * Made-by-FPT revenue increased 31% YoY.

Telecom  

15,806

17,610

11%

99%

 

  - Telecom Services

15,186

16,906

11%

99%

* Fixed-broadband revenue grew 12% YoY while non-broadband revenue grew 10% YoY.

  - Online advertising

620

705

14%

103%

 

Education 

6,159

7,088

15%

98%

* Slightly trailed our forecasts due to slower education growth.

Investment & others

-796

-959

N.M.

100%

 

PBT 

9,203

11,071

20%

100%

 

Technology 

4,161

5,229

26%

102%

 

  - Global IT 

3,782

4,770

26%

98%

 * Profit margin declined 20 bps YoY to 15.4%, mainly due to the cost of goodwill amortization for acquisitions in 2023-early 2024.

  - Domestic IT 

379

460

21%

162%


Telecom  

3,036

3,588

18%

99%

 

  - Telecom Services

2,895

3,420

18%

99%

* Profit margin expanded by 1.2 ppts YoY to 20.2% in 2024 due to improvements in SG&A efficiencies as well as a widening PBT margin of the pay TV business. 

  - Online advertising

141

167

18%

98%

 

Education, investment & others 

2,005

2,254

12%

97%


NPAT-MI 

6,465

7,849

21%

101%

 

Source: FPT, Vietcap

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