FPT Telecom sustains growth momentum after state capital oversight transfer to public security ministry

FPT Telecom has maintained strong growth momentum following the transfer of state capital representation to the Ministry of Public Security, with profit growth outpacing revenue, robust cash generation, and large-scale dividends signalling what analysts describe as a “golden phase” of operating efficiency.

The company’s story, however, extends beyond financial performance, as the transfer of state capital oversight to the ministry places FPT Telecom at the intersection of commercial growth and its role as a provider of strategic national infrastructure.

Since an extraordinary shareholders’ meeting on December 24, 2025, shares of FPT Telecom (FOX) have surged from around VND40,000 to about VND90,000 ($3.43) as of January 23, 2026, after briefly topping VND100,000 on January 21.

The rally lifted the stock to record highs, reflecting market expectations of a new phase of development.

Investor sentiment has been buoyed by recent developments, including the appointment of representatives linked to GTEL to the board and the securing of English Premier League (EPL) broadcasting rights by FPT Play from 2026.

While these events have yet to translate directly into earnings, the company’s latest results show continued solid performance.

According to its Q4/2025 financial statements, FOX posted net revenue of VND5.22 trillion ($198.86 million), up 8.5% year-on-year, while net profit jumped 22.8% to VND905 billion.

For the full year, revenue reached VND19.51 trillion ($743,23 million), up 10.8%, and net profit rose nearly 22% to VND3.49 trillion ($132.83 million).

The fact that profit growth was nearly twice the pace of revenue growth points to improving margins and reflects efforts to enhance operational efficiency and cost management as the business scales up.

Strong balance sheet and cash flow

Beyond earnings growth, FPT Telecom has demonstrated strong cash-generating capacity.

In 2025, the company expanded its bank deposits and short-term financial investments, with term deposits of more than three months rising to VND12.38 trillion ($471.63 million), an increase of over VND1 trillion from the start of the year.

Total short- and long-term borrowings stood at about VND7.51 trillion ($286.15 million), nearly $900 billion ($34.29 million) higher year-on-year.

Most notable was the company’s sizeable dividend payout. In 2025, FOX paid cash dividends of over VND2.46 trillion (VND93.85 million) and issued share dividends of a similar value, bringing total dividends to nearly VND5 trillion ($190.51 million), according to its financial statements.

While most dividends were distributed to major shareholders such as the State Capital Investment Corporation (SCIC) and FPT Corp (HoSE: FPT), the company said the payouts were backed by its own operating cash flow rather than one-off gains or related-party revenue.

Despite generating nearly VND20 trillion ($762.05 million) in revenue in 2025, income from related parties – including FPT Corp and unit in the same ecosystem – amounted to only a few hundred billion VND (VND100 billion = $3.81), accounting for a small share of total revenue.

Subsidiaries also continued to contribute. FPT Online Services JSC (FOC), in which FOX holds a 56.51% stake, reported equity of more than VND770 billion ($29.34 million) at the end of 2025, including around VND550 billion in retained earnings.

FOX’s share of that equity is estimated at about VND435 billion ($16.57 million). The company also controls five other subsidiaries, providing further scope for consolidated profit growth.

One lingering concern is overdue receivables, which stood at about VND261 billion, little changed from a year earlier, prompting provisions of more than VND250 billion. Aside from this issue, the company’s financial health remains strong, analysts say.

Importantly, FOX’s growth has been driven by its core operations rather than reliance on its parent or major shareholders. The transfer of state capital oversight to the Ministry of Public Security could act as a new catalyst, boosting growth momentum while increasing the company’s social and strategic responsibilities.

Technology development tied to infrastructure

At the extraordinary shareholders’ meeting in December, the management highlighted several projects drawing public attention, including English Premier League (EPL) broadcasting rights, but stressed that network quality and service reliability remain the key factors in attracting and retaining customers.

Fourth-quarter disclosures show FOX is investing heavily in large-scale infrastructure projects, including the Q9 data center, the AL submarine cable, and a national north-south backbone transmission system.

With the new oversight framework, the company is expected to coordinate more closely with ministries, local authorities, and other stakeholders to optimize project timelines and investment efficiency, while taking on greater responsibility for cybersecurity.

Data center projects must be aligned with local power supply capacity due to high electricity demand, while the north-south backbone needs to be synchronized with expressway development to ensure coordinated rollout.

The company expects preferential mechanisms for using expressway infrastructure for national security purposes. In the longer term, FPT Telecom has also been asked to move towards building its own dedicated submarine cable to serve security and defence needs, company representatives said.

The transfer of state ownership representation opens up new opportunities but also raises the bar for accountability. The key challenge for FPT Telecom in the coming period will be not only sustaining profit growth, but also balancing economic efficiency with infrastructure development and national information security – a demanding test for one of Vietnam’s leading telecommunications companies.

On the unlisted public companies market UPCom, FOX shares closed Friday at VND90,800 ($3.46) apiece.

Vietnam's Ministry of Public Security assumed the role of representing the state ownership at FPT Telecom last July, after taking over MobiFone in February.

At FPT Telecom, the ministry took over the role of the State Capital Investment Corporation (SCIC). Before the transfer, FPT Telecom had two major shareholders: SCIC with a 50.17% stake and FPT Corporation with 45.66%.