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Software giant sees rise in pre-tax profits
Software giant FPT yesterday announced pre-tax profits in the first half of the year grew by 24.7 per cent over the same period last year despite a 5.2-per-cent decline in total earnings.
During the first six months of this year, the company earned more than VND8.2 trillion (US$460.7 million) and realised a pre-tax profit of nearly VND787 billion ($44.2 million), it reported.
"The reason that we attained higher profits despite lower revenues is that we focused on sectors with the greatest return," said FPT general director Nguyen Thanh Nam, pointing to such high-profit sectors as telecommunications, education, software distribution and export and systems integration. "During this period, we did not invest in sectors that would bring no profit or low profit."
Telecommunications paid the biggest returns to FPT in the first half, generating earnings of VND880.1 billion ($49.4 million) and a profit of VND315.2 billion ($17.7 million), an increase of 51.2 per cent of the first half of 2008, Nam said.
Profits from systems integration were the greatest surprise, he added, totalling VND159.2 billion ($8.9 million) during the period, a 56.7 per cent increase.
Profits from software exports, meanwhile, were down 8.8 per cent, to just VND97.3 billion ($5.4 million).
"The global recession has affected all countries, and many of our markets, including Japan," Nam said. "Many companies in Japan cut back on their orders and this directly affected our exports."
Distribution profits also fell by 49.4 per cent, reaching only VND138.5 billion ($7.8 million).
"We hope that in the second half of this year, these sectors will not decrease further. We will try to keep them flat," Nam said.
He said he was optimistic about the second half and the ability of FPT to reach its targets for the entire year, pointing to foreign exchange uncertainties as the only risk factor.
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