Vietnam’s FPT invests $10 million in submarine cable project- Nikkei Asian Review
HO CHI MINH CITY — Vietnam’s leading IT group FPT revealed it has made a $10 million investment in the Asia-Pacific Gateway submarine cable project, which is scheduled to be operational this year.
The underwater cable communication network will connect countries in the region including Vietnam, Japan, Hong Kong, China, Singapore, Malaysia, Taiwan, South Korea and Thailand.
According to an FPT representative, three Vietnamese groups — the military-run Viettel Group, FPT and CMC Telecommunication Infrastructure — joined hands through a business cooperation contract. A subsidiary of Viettel Group — Viettel Telecom — then acts as representative of the other three entities to participate in the cable project. FPT is contributing an estimated $10 million, equivalent to 25% of the total that Viettel Telecom is contributing.
The details were released in FPT’s financial report.
In the first quarter of 2016, FPT posted 8,567 billion dong ($384 million) in revenue, and 563 billion dong ($25 million) in pre-tax profit, respectively fulfilling 101% and 110% of targets.
Net profit attributable to the parent company’s shareholders was 346 billion dong, meeting 104% of the target, but down 18.5% compared to the same time last year. FPT’s earnings per share were 870 dong, down 19% year-on-year.
Its revenue and pre-tax profit have all exceeded the year-to-date targets, but were 10.5% and 13% lower, respectively, compared to the same time last year. “It is due to higher investment in telecom infrastructure and the domestic market has yet to see recovery signal,” the report said, going on to add that such factors “were anticipated and reflected in the first quarter’s plan.”
From the second half of 2016, the company forecasts that its telecom infrastructure and domestic-related segments — including software solutions, system integration and IT services — will record higher revenue than the prior year period, meeting its fiscal year targets of around $2 billion in revenue, a growth of 14.5%, and $141 million in pre-tax profit, up 10.5%.
FPT’s financial report mentioned positive results from overseas, with 36% higher revenues of 1,242 billion dong ($55.7 million), and pretax profit of 175 billion dong ($7 million), up 53% compared to the same period in 2015.
The Japan market accounted for nearly half of FPT’s global revenue, recorded at 584 billion dong ($26 million), an 57% increase year-on-year.
According to the company, FPT plans set up more centers and train more employees, focusing on social, mobile, analytics and cloud (known as SMAC) and the so-called Internet of Things, to provide better services to Japan, which is considered its most important overseas market.
This year, FPT is aiming for a 40% increase in revenue in Japan, and a 60% growth in its labor force serving Japanese clients. At the company’s 2016 annual general meeting in March, FPT announced it would pay a dividend of 35% for 2015, 20% of which would be paid in cash and 15% in stock.
The submarine cable consortium includes major telecom operators and internet companies, including Taiwan’s Chunghwa Telecom, China’s three telcos China Mobile, China Telecom and China Unicom, KT of South Korea, NTT Communications of Japan, StarHub in Singapore, and Facebook of the U.S.
この日経の記事自体、”The details were released in FPT’s financial report.”と言っている割には、詳細が述べられていません。なんかおかしい記事ですね。