Bluebik Group Public Company Limited (BBIK), a leading consultancy on end-to-end digital transformation, expects the economy will recover in the second half of 2024 on tourism growth, increasing consumption in the private sector and accelerated spending in the government sector. With this anticipation, business organizations started to resume their digital transformation plans by the end of the second quarter. The revenue backlog of Bluebik (as of June) was thus record-high at 1,377 million baht, up by 43% from the previous quarter. Of the backlog, 905 million baht came from the parent company and its subsidiaries and 472 million baht from its joint ventures. This year the parent company and its subsidiaries will recognize 506 million baht of the backlog and joint ventures will do so with the combined amount of 330 million baht. The remainder will be gradually recognized from 2025 to 2029. This will result in robust growth in the second half of this year and the revenue of the group should reach a new high for the eighth consecutive year.
Pochara Arayakarnkul, Chief Executive Officer of Bluebik Group Public Company Limited (BBIK), said demand for digital transformation progresses among business organizations because technology development continues and modern businesses depend on technologies and innovations. Therefore, demand for digital transformation and technology adoption quickly re-emerges when there are the positive signs of the economy. The increasing demand is obvious especially among financial, banking, insurance and retail businesses which can afford technology investment. Bluebik considers the circumstance as a positive factor and its performance in the second half of this year will likely recover and grow by at least 15% compared with its operation in the first half of the year. Apart from this factor, the tax privileges of the parent company and its subsidiaries throughout this year, cost reduction measures within the group and the strong growth of the joint ventures in which Bluebik invested earlier including Sauce Skills will result in another new high in performances in 2024.
“Technologies developed rapidly especially over the past few years and there have been numerous new waves of technologies such as AI which is disrupting businesses. The trend of AI transformation is still in its initial stage. Therefore, businesses will be demanding technology transition and adoption. The more technology develops to reduce costs, the more technology investment grows. Thus, the challenge for Bluebik, as a technology consultancy with the biggest workforce of tech talents in the country, is to increase its capabilities to meet the trend and the demand. Consequently, we are speeding up collaboration and plan adjustment among companies in the group, especially Bluebik Vulcan and Innoviz Solutions, to maximize efficiency in service delivery and support the future growth of Bluebik,” Mr. Pochara said.
In the second half of 2024, Bluebik will increase the employee utilization rate of its group from 50% to 55-60%. It will also greatly raise the number of its high-level executives and new executive positions will include chief operating officer and chief commercial officer to strengthen work processes and intensify cross-selling and up-selling for products and services through the customer bases of companies under the same umbrella. In addition, Bluebik will implement its cross-resource plan to maximize efficiency and eliminate unnecessary administrative costs. The plan is a part of cost management and preparation for business expansion in Thailand and other countries where demand for digital transformation is high.
Bluebik sees high growth potential in Vietnam as its economy is growing. There are many clients that are ready to invest in technologies. Other promising markets include Indonesia, Malaysia and the Philippines where business organizations increasingly prioritize technologies and innovations. Bluebik also sees possibility to woo more clients beyond the private sector. It is aware that the government sector needs the complex systems that can handle large amounts of users. The demand shows it is time for Bluebik to seriously penetrate this market.
In the first half of 2024, Bluebik generated 114 million baht in net profit, down by 17% year-on-year. Its revenue stood at 708 million baht, up by 17% from a year earlier. In the second quarter of 2024, Bluebik made 43 million baht in net profit, falling by 40% compared with the previous quarter. Its revenue amounted to 339 million baht, down by 8%. The quarter-on-quarter slowdown happened because business organizations were concerned about economic situations which partly resulted from delayed budget disbursement in the government sector in 2023 and 2024 which caused potential clients to postpone their bidding contests. However, potential clients have resumed the implementation of their digital transformation plans.
“The challenges that Bluebik has faced prove its strength because the group has been able to maintain its steady growth for 10 years. This year we are stepping to our 11th year of business with pride. Bluebik proceeds with its endless development and prioritizes business growth through service quality and cost management which justify confidence among corporate clients and investors,” Mr. Pochara concluded.
