VCI Global Limited Q2 FY2025 earnings call

• VCI Global has a portfolio of high-growth verticals in cybersecurity, AI, fintech technology development, and AI infrastructure. • Technology segment led growth with USD 9.3 million in the first half, up from USD 1.7 million the prior year. • Consultancy arm contributed USD 8.1 million, remaining a solid foundation. • Launched GPU Lounge and GPU cloud platform, expanding into GPU as a service. • RWA consultancy gaining traction, with increased investment in cybersecurity, AI, data analytics, and fintech. • Planned IPO of VCIG, its capital market advisory arm, targeted for Q1 2026.

In the first half of 2025, the technology segment delivered USD 9.3 million, up from USD 1.7 million a year ago. The consultancy arm contributed USD 8.1 million. Total revenue was USD 18.7 million, a 37% year-on-year increase. Gross profit increased by 17% to USD 15.1 million with a gross margin of 80%. EBITDA was USD 5.2 million, net profit after tax was USD 4.66 million with a net margin of 35%. Interest income rose to USD 1.3 million from USD 0.7 million, and other income increased to USD 0.6 million from USD 0.1 million.

• Focus on execution and scaling, bringing GPU and AI infrastructure services to market. • Grow cybersecurity offerings. • Maintain healthy deal flow in capital markets advisory business. • Build VCI Global as an ecosystem of platforms with long-term potential.

• Delivery capacity concerns as demand grows, especially in technology, needing controlled scaling of infrastructure and teams. • Timing of consultancy deal closures, particularly IPOs, influenced by external market conditions. • Need for continued capital deployment discipline, sequencing investments to match commercial milestones. • Monitoring regulatory developments, especially in AI and digital assets, to stay compliant.

Q: How are you prioritizing capital allocation across AI, cybersecurity, fintech and data analytics and what milestones are targeted?

A: We take a disciplined, phased approach. Top priority is AI infrastructure and related services. Next is cybersecurity. Fintech and data analytics are more selective. Target milestones are commercial traction and revenue visibility within 12 to 24 months.

Q: Should we view consultancy revenue moderation as structural shift to technology or cyclical?

A: It's a bit of both. Consultancy had strong 2024, so moderation is return to typical activity, but there's a structural shift with technology becoming a larger part of the business.

Q: How is the current pipeline shaping out for the second half, particularly in technology?

A: Pipeline is steady and balanced. On technology, enterprise interest in AI integrated server and cloud platform is consistent, with some proof-of-concept and early commercial talks. GPU as a service has encouraging interest, with plans to onboard initial clients. Consultancy pipeline is healthy with mix of mandates at various stages.

Q: What are the key execution risks to watch for the remaining of 2025?

A: Delivery capacity, timing of consultancy deal closures, capital deployment discipline, and monitoring regulatory developments in AI and digital assets