News & Activities 14 May 2024

Bluebik earned B369m, up 38%, with B71m profit and B960m backlog in Q1

Bluebik Group Public Company Limited (BBIK), a leading consultancy on end-to-end digital transformation, announced its performances in the first quarter of 2024. The company made 369 million baht in revenue, soaring by 38% year-on-year, and a net profit of 71 million baht, up by 14% from a year earlier. This results from steadily growing demand for digital transformation especially in banking, insurance, technology and retail sectors. In addition, Bluebik had 960 million baht in backlog revenue (as of the end of March). Of the backlog, 699 million baht came from the parent company and its subsidiaries and 261 million baht from its joint ventures. Bluebik will recognize more than 510 million baht in the backlog this year and the remainder between 2025 and 2028. The backlog of its joint ventures will be completely recognized this year.

Pochara Arayakarnkul, Chief Executive Officer of Bluebik Group Public Company Limited, said although demand for technology is growing because it is vital for competitiveness in both short and long terms and helps reduce costs in many areas, the prolonged economic slowdown forces the business sector to be more cautious about investment. Business organizations divide their projects into phases and take longer to evaluate bids. Therefore, Bluebik adjusts its business plans accordingly to make the most use of resources, increase efficiency, strengthen its management and sales teams and speed up synergy with subsidiaries. This guarantees that the group is ready to penetrate domestic and international markets and effectively meet the demand of clients right when economic growth is about to gain momentum.

“The year 2024 is another year of challenge for Thai and international businesses regarding many negative factors which are the economic situations of trading partners, the fluctuation of global money markets, geopolitical conflicts, natural disasters and unseasonable weather which affect business operations and especially investments which are obviously falling. However, investments in the business sector are likely to improve in the second half of this year due to budget disbursement and economic stimulation by the government, tourism and export growth and the continuously growing demand for technology to enhance competitiveness and reduce costs in the long term. These positive factors will lead businesses to gradually increase their investments in technology and innovation,” Mr. Pochara said.

Regarding performances in the first quarter of 2024, Bluebik made a net profit of 71 million baht, an 18% decline from the previous quarter. It collected 369 million baht in revenue, slightly dropping by 0.80% quarter-on-quarter. The modest performances compared with those in the previous quarter resulted from 1) the irregularly rising cost of services in other countries to complete and deliver them during the economic slowdown; 2) the strong baht value against the US currency in the first quarter causing subscription fees for offshore software to rise significantly; and 3) increases in costs of sales and administrative expenses to support the sustainable growth of the group in the future, which concern office operations and the employment of experienced sales personnel and executives.

“Though experiencing many times of challenge, Bluebik has been growing strongly and steadily for 10 years. The situation will be the same this year. Apart from coping with economic factors, the company is preparing for its listing on the Stock Exchange of Thailand (SET) in 2025 to strengthen its image to bid for largescale projects in Thailand and other countries to achieve sustainable growth as planned,” Mr. Pochara concluded.