Bluebik Group Public Company Limited (BBIK), a leading consultancy on end-to-end digital transformation, has unveiled its 2024 business plan which underscores the 360-degree expansion of its client base to serve medium-sized and largescale organizations domestically and internationally. After successful synergy among companies in its group, Bluebik is entering markets with high potential in Southeast Asia. The client base expansion is benefiting from the performance of companies under its umbrella and worldwide investment in digital transformation which is likely to grow by as much as 10% to about 2.51 trillion US dollars this year. Bluebik is confident that its operating performance will meet its 50% growth target in 2024. Last year Bluebik’s net profit stood at 303 million baht, up by 132% year-on-year, and its revenue amounted to 1,313 million baht, showing a 133% increase.
Bluebik also plans to announce a resolution from the 1/2567 meeting of its board of directors to propose in the annual general meeting of its shareholders a dividend payment of 0.80 baht per share from its 2023 operation to shareholders with 108,882,400 shares. The payment will consist of stock dividend payment worth not more than 45.57 million baht or 0.4185 baht per share and cash dividend payment of about 41.54 million baht or 0.3815 baht per share. The excluded dividend (XD) date is set on April 30, 2024, and the dividend payment date is on May 21, 2024.
Mr. Pochara Arayakarnkul, Chief Executive Officer of Bluebik Group Public Company Limited (BBIK), said that although economic slowdowns will be affecting investment in the private sector in 2024, demand for digital transformation is growing. This is because investment in technology and innovation must be maintained and raised especially for the development of information technology infrastructure and the proper adoption of technologies in order to follow trends, protect competitiveness, reduce risks and costs and achieve long-term business growth. However, Bluebik has adjusted its business plan to suit the stricter expenditure of clients and also to meet its growth target.
6 positive factors are stimulating Bluebik’s growth
1) Synergistic integration for economies of scale – Companies in Bluebik Group are collaborating for economies of scale. Bluebik also increases its employee utilization rate and conducts cross-selling and up-selling to promote its products and services through the client bases of its subsidiaries.
2) In-organic growth from subsidiaries and M&A deals – Bluebik is strengthening its business through the networks of its subsidiaries. For example, Sauce Skills Company Limited has received a very warm welcome for its corporate training services to enhance digital and business skills as well as leadership. Through the business of this subsidiary, Bluebik is reaching new groups of clients.
3) Global market expansion – Bluebik is seriously penetrating markets with high potential including Malaysia, the Philippines and Vietnam where investment in technology and innovation has been rising.
4) Sustained momentum of core services based on digital transformation trends which includes:
- ‘Agile for Hyper Scaling’– This software development trend creates hyper scaling for the organizations that need highly flexible digital ecosystems and ability to handle all business requirements through event-driven nano architecture (EDNA) which is flexible and supports changing demand for resources while keeping services intact.
- Generative AI – Generative AI is a technology that increases the capabilities of organizations. The democratized generative AI service of Bluebik provides organizations with broad access to generative AI technology and thus more business opportunities. With generative AI, organizations can, for example, speed up product development, increase efficiency, reduce repetitive tasks and better reach customers with AI-powered customer insights.
- Digital Immunity and Trust – Rampant cybecrime can damage business. Worldwide cybercrimes are likely to escalate by as much as 70% during 2023 and 2028. Bluebik has developed its ‘Cyber Guardians’ service to cover the key components of cybersecurity framework which are prevention, protection, response, and insurance to guarantee maximize security for business organizations. The service reflects intensified and comprehensive cybersecurity.
5) Full-year BOI tax benefits – Vulcan Digital Delivery Company Limited (BBVC) and Innoviz Solutions Company Limited (Innoviz) expect approval for their full-year tax privileges from the Board of Investment in the second half of this year.
6) Larger share of profit in Innoviz Solutions – Bluebik’s profit share in Innoviz will rise from 55% (at the end of 2023) to 85% on additional share acquisition which is expected to be concluded within February.
“Technology and innovation are more complex and diverse over time. Bluebik has competitive advantage because of its end-to-end digital transformation consulting. The business plan will not only support business growth but also allow Bluebik to carry out large and more complex projects and expand its business in countries with potential such as Vietnam where we have tech talent and investment in technology and innovation is likely to increase substantially and steadily,” Mr. Pochara said.
Bluebik outpaced its growth target in 2023. Its net profit was at 303 million baht, soaring by 132% year-on-year. Its revenue amounted to 1,313 million baht, up by 133% from the previous year. This resulted from digital transformation demand which is growing consistently and leads to the expansion of Bluebik’s Digital Excellence & Delivery service which covers in-depth digital and technology development consulting for organizations and its Big Data & Advanced Analytics service for big data management and advanced data analyses. The successful synergy of companies in its group also enables Bluebik to carry out more projects.
In the fourth quarter of 2023, Bluebik made a net profit of 86 million baht, an 8% increase from the previous quarter. It generated 372 million baht in revenue which rose by 11%. Its revenue backlog as of December 2023 stood at 863 million baht consisting of 709 million baht from Bluebik’s operations and 154 million baht from the business of its joint ventures. This year Bluebik will recognize 579 million baht of the backlog and the remainder will be recognized gradually after 2024. Its joint ventures will recognize all their revenue backlog within this year.
“Although Bluebik has faced many challenges, it can grow with stability regarding the compound annual growth rate of as high as 80% for its profit and revenue from 2017 to 2023. We strongly believe that the stable growth of our operating performance will continue this year and we will make a new high for the seventh consecutive year due to our strong service ecosystem and planned investment in the businesses that create mutual benefits among subsidiaries under the umbrella,” Mr. Pochara concluded.
