Japan remains its most important overseas market, with revenue rising 58%.
FPT’s overseas markets earned it revenue of VND2.195 trillion ($98.29 million) in the first five months of the year, a 36 per cent increase year-on-year.
Software exports contributed the largest proportion, growing 38 per cent in revenue and 26 per cent in pre-tax profit, equal to 103 and 100 per cent of the targets, respectively.
Overall, pre-tax profit increased 45 per cent year-on-year in its overseas markets.
The Japanese market, FPT’s largest overseas, recorded the strongest growth in revenue in the five-month period, of 58 per cent. In recent years Japan has been the most important market for FPT’s software exports, contributing 50 per cent of revenue. In the first four months FPT’s revenue in Japan was its highest ever, increasing 59 per cent year-on-year. FPT now has 4,500 engineers working for Japanese partners.
In May FPT signed contracts with the Toppan Printing Co. and Tokyo Shoseki, two major Japanese groups. FPT has cooperated with Toppan Printing in software outsourcing and expanded their business in Southeast Asia.
The arrangement is expected to bring in more software outsourcing orders from the company to FPT, especially business process outsourcing (BPO), in which there is significant competition from China and the Philippines.
With Tokyo Shoseki, FPT will focus on digitizing electronic textbooks for Japan and Vietnam. The Ministry of Education in Japan will pass plans this year to digitize all textbooks in primary school and secondary schools by 2020. The contract with Tokyo Shoseki gives FPT a major opportunity to secure orders in this endeavor.
In 2017 FPT expects the Japanese market will earn it revenue of $200 million and create job opportunities for 8,800 employees in Japan and Vietnam.
FPT’s consolidated revenue in the first five months was VND14.633 trillion ($655.26 million), equal to 97 per cent of the target. Pre-tax profit was VND1.037 trillion ($46.43 million), reaching to 109 per cent of the target. Pre-tax profit of the parent company was VND722 billion ($32.33 million), or 116 per cent of the target.
Earnings per share (EPS) were VND1.814 trillion ($81.23 million), equal to 116 per cent of the target.
Retail remained the highlight of its business in the first five months, recording growth of 33 per cent in revenue and 37 per cent in pre-tax profit, equal to 105 per cent and 102 per cent of the targets, respectively.
This year FPT has targeted revenue of nearly VND46 trillion ($2.07 billion) this year, up 14.5 per cent compared to last year. Pre-tax profit is to reach VND 3.15 trillion ($141.75 million), up 10.5 per cent.