News & Activities 14 November 2023

BBIK shows B217m record profit in 9M expects strong Q4 yearly growth beyond 120% target

Bluebik earned B941m revenue in the first 9 months of 2023 and made a new high in profit at B217m while foreseeing impressive performance in Q4 and turnover to exceed its 120% growth target for this year despite an economic downturn  

Bluebik Group Public Company Limited (BBIK), a leading consultancy on end-to-end digital transformation, demonstrates its strong growth in the first nine months of 2023. Its net profit reached 217 million baht, showing a 118% surge compared with the same period last year. Its revenue soared by 122% to as much as 941 million baht. The impressive turnover resulted from the steady growth of its main services, strategies to boost synergy among companies in its group and tax privileges. The positive factors led to a record high of its profit in the third quarter of 2023 despite an economic slowdown.

In the third quarter of this year, the net profit of the group stood at 80 million baht, up by 6% from the previous quarter. This resulted from its gross profit margin that remained high at 53%, a 4% decrease in administration and sales costs and waived corporate income tax worth 335 million baht. The group also had backlogs for its overseas services in the third and fourth quarters. Its total backlog (at the end of September 2023) amounted to 805 million baht comprising 692 million baht of Bluebik alone and 113 million baht of its joint ventures. Of the backlog, Bluebik will recognize 291 million baht in its own revenue and 113 million baht in the revenue of its joint ventures in the fourth quarter. The remainder will be gradually recognized from 2024 to 2028.

Pochara Arayakarnkul, Chief Executive Officer of Bluebik Group Public Company Limited (BBIK), said that for the year to date, there have been so many challenges to business. The impacts of negative factors have been increased. They include geopolitical and investment risks, international conflicts and an economic downturn. However, Bluebik managed to maintain its net profit growth over the past nine months. The company is confident that its performance will remain strong in the fourth quarter on its main services in the country and elsewhere and its substantial profit shares in its joint ventures. These will make its turnover in 2023 grow beyond its previously set target of 120%.

“Businesses keep investing in technology because they must retain their competitiveness and cut operating costs. The company also sees opportunities to use its potential and expertise to boost revenue by launching new products and services in the future to meet business requirements in the era of digital economy. Services related to white label platforms, ERP implementation and cybersecurity can be expanded to cover broader needs, for example, ranging from prevention to responses to attacks,” Mr. Pochara said.

Bluebik strongly believes that its brilliant performance will continue in 2024 because its end-to-end services effectively meet increasingly complicated business requirements. Moreover, the company is entering the foreign markets that have potential. These include Vietnam that is experiencing changes and growth resulting from digital disruption as well as Malaysia and the Philippines which are paying special attention to digital transformation. Bluebik is ready to meet demand in the markets with its main services namely Digital Excellence and Delivery (digital system development and technology consulting), Management Consulting (advice on strategies and management) and Cybersecurity (services to guarantee cybersecurity).

Bluebik also sees many other positive factors to support its anticipated growth in 2024. They include the tax privilege of Bluebik Titans Company Limited that was approved in the third quarter this year, another tax privilege expected in the fourth quarter for Vulcan Digital Delivery (VDD) Company Limited and the complete commencement of two joint ventures – Sauce Skills Company Limited which is receiving a very warm welcome from large corporate clients for its corporate training services and EcoX Company Limited (EcoX) that will fully run its business related to technology including green tech next year. “The strategic plan to create synergy among companies under the umbrella is completed this year. It will support the strong growth of Bluebik next year. The group will cut costs due to its improved back-office operations. Its employee utilization rate is rising. Also, there are cross-selling, up-selling and task distribution among companies of the group. Bluebik can approach new clients locally and internationally, effectively expand client bases and develop new products and services in the future,” Mr. Pochara concluded.