News & Activities 2 March 2023

Bluebik shows record high B131m net profit in 2022, nearly twofold rise and 6th consecutive annual new high

Bluebik Group Public Company Limited (BBIK), a leading consultancy on end-to-end digital transformation, breaks its net profit record for the 6th consecutive year in 2022 and shows off the exponential compound annual growth rate (CAGR) of its profit at 70%. Last year its net profit soared by as much as 96.42% year-on-year to 131 million baht. This results from its greater net profit margin, efficient cost management, effective revenue generation through continuous business expansion, steadily growing demand for digital transformation and the promotional privileges that the Board of Investment granted to the group.

Pochara Arayakarnkul, Chief Executive Officer of Bluebik Group Public Company Limited, said that the 2022 profit growth exceeded its previous target of 70%. The 131-million-baht net profit nearly doubled the group’s 66-million-baht net earnings in 2021. This results from its expansion to the business activities that have potential and support its core services. In addition, local and overseas demand for digital transformation to boost competitiveness rises continuously and substantially. The factors are the reasons why the business of the group has grown exponentially between 2017 and 2022. The compound annual growth rate (CAGR) of its profit skyrockets at 70%, outpacing the average rate of listed companies in the same industry.

“2022 was the year of serious business expansion in the country and elsewhere through the mergers, acquisitions and establishment of nine companies to meet local and overseas demand for digital transformation which must be carried out continuously. At its latest development, the company has increased its team of tech talents from 350 to nearly 800 after completely acquiring VDD and Innoviz on February 21. Revenue from the two companies will be recognized right away in the first quarter of this year. So, the performance is likely to make a new high again in the first quarter and revenue throughout 2023 will be certainly appealing,” Mr. Pochara said.

Regarding its performance in 2022, Bluebik Group earned 564 million baht in total revenue, up by 86%, and made a net profit of 131 million baht, rising by 96% year-on-year, compared with its 304-million-baht revenue and 66-million-baht net profit in the previous year. The net profit margin in 2022 was at 23%, up from 22% in 2021. If the 9-million-baht one-time expense on financial and legal consulting for the acquisition of two large companies namely Innoviz Solutions Co., Ltd. and Vulcan Digital Delivery Co., Ltd. is excluded, the net profit from operations in 2022 will be 138 million baht, showing 108% year-over-year growth. Also, the group enjoys promotional privileges obtained from the Board of Investment through GMVPI Co., Ltd., ORBIT Digital Co., Ltd., Bluebik Addenda Co., Ltd. and the DX business unit of Bluebik. This is a factor behind the profit growth of the group. As well, its service expansion to Singapore, Indonesia, England and Vietnam resulted in revenue from foreign sales forming 8% of the total revenue of the group in 2022.

Bluebik Group has found that amid economic recovery in general businesses increasingly demand digital transformation and want to make significantly greater investment in technologies to gain their advantage. Consequently, the core services of Bluebik Group grew satisfactorily in 2022. Its digital system development and technology consulting services (Digital Excellence and Delivery – DX) continued to be the largest source of income, generating 349 million baht which soared by 65%. Consulting on strategies and management (Management Consulting – MC) was the second biggest source of revenue, producing 83 million baht (up by 36%), followed by big data management and advanced data analysis with artificial intelligence (Big Data, Advanced Analytics & Artificial Intelligence) which brought in 69 million baht (up by 142%) and strategic project management (Strategic PMO) which yielded 64 million baht (surging by 1,863%).

In 2023, Bluebik Group will be expanding business according to its strategic plans and developing comprehensive synergy with companies under the same umbrella through cross-selling and up-selling to raise their gross profit margin. The group is also determined to create new business opportunities to strengthen its core services and realize its stable growth for good. Such efforts include the expansion of business related to products and solutions to increase recurring income. In addition, the group will cut costs with economy of scale and enhance its image through the eyes of its clients, business partners and employees with business expansion in the forms of mergers and acquisitions (M&A).

Bluebik Group is confident that its business will grow steadily. Its revenue backlog based on existing business activities amounted to 454 million baht (as of the end of last December). Of the amount, 303 million baht in revenue will be recognized this year and the remainder will be done from 2024 to 2028. Moreover, Bluebik Group has applied for corporate income tax breaks for Vulcan Digital Delivery Co., Ltd. It expects the application will be approved within the second half of this year. The group will do the same for Innoviz Solutions Co., Ltd. in the following year. Therefore, the profit margin of the group will be widening.

“Bluebik plans more investment through new deals and steady overseas business expansion. We consider this as an important strategy for long-term growth because overseas markets are much bigger than Thailand. Also, Bluebik has competitive edge from its better pricing and the quality of its work that is second to none. This is the reason why we have won trust from our clients that are leading companies in countries,” Mr. Pochara concluded.