FOC: FPT Online’s profit in the second quarter increased by nearly 30%, sharply reducing deposits

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In the second quarter, FPT Online reported a nearly 30% increase in profit thanks to a sharp increase in revenue from the low base of the same period under the impact of the epidemic.

In the first 6 months, the company completed about 40% of the annual business plan in terms of revenue and profit.

FPT Online Services Joint Stock Company (FPT Online, UPCoM: FOC) announced its consolidated financial statements for the second quarter of 2021 with revenue of VND 157.4 billion, up 33% over the same period.

Gross profit margin on sales in the period reached 72%, up from 67% in the same period last year. The Company does not recognize revenue from financial activities.

Selling expenses and general and administrative expenses decreased slightly over the same period. As a result, FPT Online earned 60.7 billion dong in net profit, up 29.7% over the same period last year.

According to the company’s explanation, the strong increase in profit in the period was mainly due to the increase in revenue. While last year, in the second quarter, the company’s revenue was heavily affected by the Covid-19 pandemic.

Notably, as of June 30, the company’s cash and cash equivalents decreased by 15% compared to the beginning of the period, reaching VND 390 billion. Short-term financial investments fell more than 66%, mainly reducing term deposits. Specifically, term deposits at the end of the period reached 130 billion dong, only 1/3 of the amount at the beginning of the period due to cash dividend payment. Accordingly, deposit interest decreased by half compared to the beginning of the period, to more than 10 billion dong at the end of the second quarter.

Source: Consolidated financial statements of the second quarter of 2021, Unit: billion dong. EPS: copper.

In 6 months, FPT Online’s revenue reached nearly 279 billion dong, profit after tax reached 102.4 billion dong, up 26% and 22% respectively over the same period last year. This result helps the company to fulfill 40% and 41% of annual revenue and profit targets, respectively.

FPT Online owns VnExpress electronic newspaper with leading website traffic until June 2021, reaching 141 million, according to data from Similarweb.com. The company’s main source of revenue comes primarily from online advertising services.

Currently, FPT Telecom is holding 59.31% of FPT Online capital, FPT Corporation owns 25.04%. In addition, the company has another major shareholder, Vina Information Technology Data-Services JSC, which owns 6.96% of charter capital.

FOC shares are currently trading around VND 104,000/share, down 30% within 3 months, after a strong increase from VND 90,000/share to nearly VND 150,000/share before the announcement of a cash dividend of 200 % at the end of April.

Source: stockbiz.vn – Translated by fintel.vn