- 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 | 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% |
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Source: FPT, Vietcap
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