VCI Global Announces 44% Revenue Growth in Its Financial Results for the Six Months Ended June 30, 2024; Announces US$10 Million Share Repurchase Program Over 2 Years
VCI Global (NASDAQ: VCIG) reported strong financial results for H1 2024:
- Revenue grew 44% YoY to $13.7 million
- Gross profit increased 57% YoY to $12.9 million
- Net income rose 25% to $5.4 million
- Business strategy consultancy revenue surged 151% to $11.2 million
- Fintech segment revenue grew 183% to $0.7 million
The company also announced a $10 million share repurchase program over 2 years. VCIG's CEO attributed the performance to strategic initiatives and market positioning. The company aims to leverage its expertise for continued growth and client value delivery.
VCI Global (NASDAQ: VCIG) ha riportato risultati finanziari solidi per il primo semestre del 2024:
- Il fatturato è aumentato del 44% rispetto all'anno precedente, raggiungendo i 13,7 milioni di dollari
- Il profitto lordo è cresciuto del 57% rispetto all'anno precedente, attestandosi a 12,9 milioni di dollari
- Il reddito netto è salito del 25% a 5,4 milioni di dollari
- Il fatturato della consulenza strategica aziendale è aumentato del 151%, arrivando a 11,2 milioni di dollari
- Il fatturato del segmento fintech è cresciuto del 183% a 0,7 milioni di dollari
L'azienda ha anche annunciato un programma di riacquisto di azioni da 10 milioni di dollari nell'arco di 2 anni. Il CEO di VCIG ha attribuito la performance alle iniziative strategiche e al posizionamento nel mercato. L'azienda punta a sfruttare la propria esperienza per una continua crescita e per fornire valore ai clienti.
VCI Global (NASDAQ: VCIG) reportó resultados financieros sólidos para la primera mitad de 2024:
- Los ingresos crecieron un 44% interanual, alcanzando los 13,7 millones de dólares
- El beneficio bruto aumentó un 57% interanual, alcanzando los 12,9 millones de dólares
- La renta neta subió un 25% a 5,4 millones de dólares
- Los ingresos por consultoría estratégica empresarial se dispararon un 151%, llegando a 11,2 millones de dólares
- Los ingresos del segmento fintech crecieron un 183% a 0,7 millones de dólares
La empresa también anunció un programa de recompra de acciones por 10 millones de dólares a lo largo de 2 años. El CEO de VCIG atribuyó el rendimiento a iniciativas estratégicas y al posicionamiento en el mercado. La empresa busca aprovechar su experiencia para continuar creciendo y ofrecer valor a los clientes.
VCI Global (NASDAQ: VCIG)는 2024년 상반기 강력한 재무 실적을 보고했습니다:
- 수익이 작년 대비 44% 증가하여 1,370만 달러에 달했습니다
- 매출총이익은 작년 대비 57% 증가하여 1,290만 달러에 이르렀습니다
- 순이익은 25% 증가하여 540만 달러에 도달했습니다
- 비즈니스 전략 컨설팅 수익은 151% 급증하여 1,120만 달러가 되었습니다
- 핀테크 부문의 수익은 183% 증가하여 70만 달러에 이르렀습니다
회사는 또한 2년 동안 1천만 달러 규모의 자사주 매입 프로그램을 발표했습니다. VCIG의 CEO는 성과를 전략적 이니셔티브와 시장 포지셔닝 덕분으로 분석했습니다. 이 회사는 지속적인 성장과 고객 가치를 제공하기 위해 자사의 전문성을 활용할 계획입니다.
VCI Global (NASDAQ: VCIG) a rapporté des résultats financiers solides pour le premier semestre 2024 :
- Le chiffre d'affaires a augmenté de 44 % par rapport à l’année précédente, atteignant 13,7 millions de dollars
- Le bénéfice brut a augmenté de 57 % par rapport à l'année précédente, s'élevant à 12,9 millions de dollars
- Le résultat net a augmenté de 25 % pour atteindre 5,4 millions de dollars
- Les revenus du conseil en stratégie d'entreprise ont bondi de 151 % pour atteindre 11,2 millions de dollars
- Les revenus du segment fintech ont crû de 183 % pour s'élever à 0,7 millions de dollars
L'entreprise a également annoncé un programme de rachat d'actions de 10 millions de dollars sur 2 ans. Le PDG de VCIG a attribué cette performance aux initiatives stratégiques et au positionnement sur le marché. L'entreprise vise à tirer parti de son expertise pour une croissance continue et la livraison de valeur à ses clients.
VCI Global (NASDAQ: VCIG) hat starke finanzielle Ergebnisse für das erste Halbjahr 2024 gemeldet:
- Der Umsatz stieg im Vergleich zum Vorjahr um 44% auf 13,7 Millionen Dollar
- Der Bruttogewinn erhöhte sich um 57% im Vergleich zum Vorjahr auf 12,9 Millionen Dollar
- Der Nettogewinn stieg um 25% auf 5,4 Millionen Dollar
- Der Umsatz aus der strategischen Unternehmensberatung schoss um 151% auf 11,2 Millionen Dollar in die Höhe
- Der Umsatz im Fintech-Segment wuchs um 183% auf 0,7 Millionen Dollar
Das Unternehmen kündigte zudem ein Aktienrückkaufprogramm über 10 Millionen Dollar über 2 Jahre an. Der CEO von VCIG führte die Leistung auf strategische Initiativen und die Marktpositionierung zurück. Das Unternehmen beabsichtigt, seine Expertise für anhaltendes Wachstum und Mehrwert für die Kunden zu nutzen.
- 44% year-over-year revenue growth to $13.7 million in H1 2024
- 57% increase in gross profit to $12.9 million
- 25% growth in net income to $5.4 million
- 151% surge in business strategy consultancy revenue to $11.2 million
- 183% growth in fintech segment revenue to $0.7 million
- Announcement of $10 million share repurchase program over 2 years
- Gross profit margin for business strategy consultancy improved from 73% to 93%
- EBITDA increased 26% to $5.7 million with 41% margin on revenue
- Net cash used in operating activities increased to $4.1 million from $3.7 million
- Cash and cash equivalents decreased 62% to $1.2 million
- Net cash used in investing activities increased significantly to $4.6 million
- Technology development, solutions and consultancy revenue decreased 58.6%
- Other income decreased 54% to $104 thousand
Insights
VCI Global's financial results demonstrate strong growth across key metrics. The 44% YoY revenue increase to
However, the decrease in cash position from
VCI Global's diversification strategy appears to be paying off, with significant growth in both consultancy and fintech segments. The 183% YoY growth in fintech revenue suggests strong market demand for their offerings. However, the 58.6% decline in technology development, solutions and consultancy revenue raises questions about this segment's performance and market positioning.
The company's focus on high-margin services is evident from the 93% gross profit margin in business strategy consultancy. This positions them well in a competitive market. The share repurchase program may boost investor confidence, but its impact on growth investments should be monitored closely.
The 94% increase in directors' fees to
The implementation of a share repurchase program demonstrates confidence but also raises questions about capital allocation priorities. Shareholders should closely monitor how this balances against investments in growth and the company's ability to maintain sufficient liquidity, especially given the current cash position and receivables situation.
KUALA LUMPUR, Malaysia, Aug. 19, 2024 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (Frankfurt: H0T) (“VCI Global,” “VCIG,” or the “Company”), a diversified holding company specializing in consulting, fintech, artificial intelligence (AI), robotics and cybersecurity, is proud to announce its unaudited financial results for the six months ended June 30, 2024 (the “Interim Results”) (the “Financial Results”).
Financial Highlights
- VCI Global achieved an impressive total revenue of
$13.7 million for the six months ended June 30, 2024, marking a44% YoY growth. - Gross profit experienced a substantial YoY growth of
57% , reaching$12.9 million for the six months ended June 30, 2024. - Net income surged to
$5.4 million for the six months ended June 30, 2024, reflecting a remarkable growth of25% . - VCIG’s business strategy consultancy revenue experienced a remarkable
151% YoY surge, reaching$11.2 million for the six months ended June 30, 2024. - VCIG’s fintech segment revenue experienced an impressive
183% YoY growth, reaching$0.7 million for the six months ended June 30, 2024.
Authorization of a Share Repurchase Program
VCIG’s Board of Directors has authorized the implementation of a share repurchase program for up to US
The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, through negotiated transactions off the market, in block trades, or through other legally permissible means. The timing and extent of any repurchases will be influenced by market conditions, the trading price of its ordinary share, and other factors. These repurchases will also adhere to restrictions relating to volume, price, and timing under applicable law. VCI Global expects to implement this Repurchase Program in a manner consistent with market conditions and the interests of the Company’s shareholders. VCIG’s Board of Directors will review the Repurchase Program periodically and may authorize adjustments to its terms and size accordingly.
“Our outstanding performance for the six months ended 2024 is a testament to the exceptional efforts and dedication of our team. We have successfully advanced our strategic initiatives and strengthened our position in the market. Looking ahead, we remain committed to leveraging our expertise to drive continued growth and deliver unparalleled value to our clients. Our focus remains on innovation and excellence, and we are excited about the opportunities that lie ahead as we build on this momentum for future success,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
Financial Results
Revenue was
- VCIG’s revenue generated from business strategy consultancy segment increased by
151% to$11.2 million for the six months ended June 30, 2024, compared to$4.5 million for the six months ended June 30, 2023. The gross profit margin of the business strategy consultancy revenue was93% for the six months ended June 30, 2024, compared to73% for the six months ended June 30, 2023. - The Company’s revenue generated from fintech segment increased by
183% to$0.7 million for the six months ended June 30, 2024, compared to$0.2 million for the six months ended June 30, 2023.
| For the Six Months Ended June 30 | |||||||
| 2024 | 2023 | Change | |||||
| USD | USD | % | |||||
| Business strategy consultancy fee | 11,160,748 | 4,453,647 | 150.6 | % | |||
| Technology development, solutions and consultancy | 1,748,959 | 4,227,387 | (58.6 | )% | |||
| Interest income | 677,086 | 239,645 | 182.5 | % | |||
| Others | 139,908 | 604,631 | (76.9 | )% | |||
| Total revenue | 13,726,701 | 9,525,310 | 44.1 | % | |||
Other Income for the six months ended June 30, 2024, was
EBITDA reached
Net Income amounted to
Cost of Services was
- Consultant fee costs significantly decreased by
$481 thousand , or40% , to$735 thousand for the six months ended June 30, 2024. These costs represent the expenses incurred by the Company for assisting its clients in engaging all the relevant professionals required during the listing process, including but not limited to legal counsel, auditors, financial consultants, and U.S. capital markets consultants. Such consultant fee payments are included and treated as part of our consultation services for clients during the IPO process. - IT expenses amounted to
$9 thousand for the six months ended June 30, 2024, reflecting a significant decrease of77% compared to$39 thousand for the six months ended June 30, 2023. The gross profit margin of the technology development, solutions and consultancy revenue was99.5% for the six months ended June 30, 2024. - Training costs amounted to
$10 thousand for the six months ended June 30, 2024, reflecting a76% decrease compared to$41 thousand for the six months ended June 30, 2023. - Other cost of services amounted to
$90 thousand for the six months ended June 30, 2024.
| For the Six Months Ended June 30 | ||||||
| 2024 | 2023 | Change | ||||
| USD | USD | % | ||||
| Consultant fee | 734,589 | 1,216,000 | (39.6 | )% | ||
| IT expenses | 8,904 | 38,705 | (77.0 | )% | ||
| Training costs | 10,098 | 41,217 | (75.5 | )% | ||
| Other | 90,461 | - | 100.0 | % | ||
| Total | 844,052 | 1,295,922 | (34.9 | )% | ||
Depreciation expenses amounted to
Directors’ fees amounted to
Operating Income increased to
As a result, profit for the period was
Cash Position and Capital Allocation
Net cash used in operating activities was
Net cash used in investing activities was
Net cash generated from financing activities amounted to
Cash and cash equivalents amounted to
About VCI Global Limited
VCI Global is a diversified holding company. Through its subsidiaries, it focuses on consulting, fintech, AI, robotics, and cybersecurity. Based in Kuala Lumpur, Malaysia, our main operations are centered in Asia, with significant visibility across Asia Pacific, the United States, Europe, and the Middle East. VCIG primarily offers consulting services in capital markets, real estate, AI, and technology. In technology businesses, the Company operates a proprietary financing platform that serves companies and individuals, as well as a secured messaging platform serving governments and organizations. We also invest, incubate, accelerate, and commercialize businesses and technologies in AI and robotics.
For more information on the Company, please log on to https://v-capital.co/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators, future regulations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the “Risk Factors” section of the Annual Report on 20-F of the Company for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (“SEC”) on April 30, 2024, and its subsequent SEC filings. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
For media queries, please contact:
VCI Global Limited
enquiries@v-capital.co
Financial Tables
| VCI Global Limited and Its Subsidiaries Interim Condensed Consolidated Statements of Financial Position | |||
| As of June 30, 2024 (Unaudited) | As of December 31, 2023 (Audited) | ||
| USD | USD | ||
| ASSETS | |||
| Non-current assets | |||
| Financial assets measured at fair value through other comprehensive income | 9,407,260 | 8,360,497 | |
| Financial assets measured at fair value through profit and loss | 15,814 | 15,861 | |
| Property and equipment | 798,309 | 696,865 | |
| Right-of-use of assets | 184,790 | 262,337 | |
| Intangible assets | 1,661,734 | 1,024,316 | |
| Loan receivables | 8,318,386 | 4,619,070 | |
| Deferred tax assets | 72,002 | 74,009 | |
| Total non-current assets | 20,458,295 | 15,052,955 | |
| Current assets | |||
| Trade and other receivables | 30,105,568 | 6,308,063 | |
| Loan receivables | 4,990,001 | 3,350,889 | |
| Cash and bank balances | 1,244,958 | 1,010,455 | |
| Income tax asset | - | - | |
| Total current assets | 36,340,527 | 10,669,407 | |
| Total assets | 56,798,822 | 25,722,362 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Trade and other payables | 4,457,488 | 4,223,722 | |
| Warrant liabilities | 1,614,286 | 428,025 | |
| Lease liabilities | 135,395 | 154,788 | |
| Bank and other borrowings | 150,031 | 147,577 | |
| Income tax payable | 149,701 | 54,739 | |
| Total current liabilities | 6,506,901 | 5,008,851 | |
| Non-current liabilities | |||
| Lease liabilities | 56,250 | 118,749 | |
| Bank and other borrowings | 36,132 | 53,455 | |
| Amount due to related parties | - | 283,346 | |
| Total non-current liabilities | 92,382 | 455,550 | |
| Total liabilities | 6,599,283 | 5,464,401 | |
| VCI Global Limited and Its Subsidiaries Interim Condensed Consolidated Statements of Financial Position (Unaudited) | |||||
| As of June 30, 2024 (Unaudited) | As of December 31, 2023 (Audited) | ||||
| USD | USD | ||||
| Capital and reserves | |||||
| Share capital | 36,374,551 | 9,589,508 | |||
| Capital reserve | 1,384,838 | 1,423,433 | |||
| Fair value reserve | (1,132,440 | ) | 365,389 | ||
| Translation reserve | 1,163,566 | 587,526 | |||
| Retained earnings | 13,674,424 | 9,183,823 | |||
| Attributable to equity owners of the Company | 51,464,939 | 21,149,679 | |||
| Non-controlling interests | (1,265,400 | ) | (891,718 | ) | |
| Total equity | 50,199,539 | 20,257,961 | |||
| Total equity and liabilities | 56,798,822 | 25,722,362 | |||
| VCI Global Limited and Its Subsidiaries Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||||
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||
| USD | USD | ||||
| Revenue | 13,033,862 | 9,525,310 | |||
| Revenue – related party | 692,839 | - | |||
| Total revenue | 13,726,701 | 9,525,310 | |||
| Other income | 104,172 | 225,992 | |||
| Cost of services | (844,052 | ) | (1,295,922 | ) | |
| Depreciation | (108,235 | ) | (58,790 | ) | |
| Directors’ fees | (2,262,483 | ) | (1,164,477 | ) | |
| Employee benefits expenses | (1,633,475 | ) | (1,664,608 | ) | |
| Impairment allowance on trade receivables | (78,110 | ) | - | ||
| Rental expenses | (57,059 | ) | (32,124 | ) | |
| Legal and professional fees | (748,571 | ) | (315,736 | ) | |
| Finance cost | (6,102 | ) | (3,401 | ) | |
| Other operating expenses | (2,530,143 | ) | (785,912 | ) | |
| Profit before income tax | 5,562,643 | 4,430,332 | |||
| Income tax expense | (175,189 | ) | (134,138 | ) | |
| Profit for the period | 5,387,454 | 4,296,194 | |||
| Other comprehensive income/(loss): | |||||
| Currency translation arising from consolidation | - | 272,678 | |||
| Fair value adjustment on financial assets measured at fair value through other comprehensive income | (1,173,700 | ) | - | ||
| Transfer upon disposal of equity instruments | (1,487,922 | ) | - | ||
| Total comprehensive income for the period | 2,725,832 | 4,568,872 | |||
| Profit attributable to: | |||||
| Equity owners of the Company | 5,916,519 | 4,542,382 | |||
| Non-controlling interests | (529,065 | ) | (246,188 | ) | |
| Total | 5,387,454 | 4,296,194 | |||
| Total comprehensive income attributable to: | |||||
| Equity owners of the Company | 3,254,897 | 4,815,060 | |||
| Non-controlling interests | (529,065 | ) | (246,188 | ) | |
| Total | 2,725,832 | 4,568,872 | |||
| VCI Global Limited and Its Subsidiaries Interim Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||
| USD | USD | ||||
| Operating activities | |||||
| Profit before income tax | 5,562,643 | 4,430,332 | |||
| Adjustments for: | |||||
| Impairment allowance of trade receivables | 78,110 | - | |||
| Reversal on impairment allowance of trade receivable | (13,649 | ) | - | ||
| Bad debt written-off | 189 | - | |||
| Unrealised foreign exchange (gain)/loss | (20,182 | ) | 172,498 | ||
| Depreciation of property and equipment | 37,802 | 24,792 | |||
| Depreciation of ROU | 70,433 | 33,998 | |||
| Share based payment – Director fees | 1,265,377 | - | |||
| Gain on disposal of investment | - | (167,167 | ) | ||
| Interest expense | 6,102 | 3,401 | |||
| Interest income | (799 | ) | (202 | ) | |
| Operating cash flow before movement in working capital | 6,986,026 | 4,497,652 | |||
| Trade and other receivables | (5,758,606 | ) | (8,615,611 | ) | |
| Loan receivables | (5,632,631 | ) | - | ||
| Trade and other payables | 348,285 | 546,538 | |||
| Cash used in operations | (4,056,926 | ) | (3,571,421 | ) | |
| Interest received | - | - | |||
| Income tax paid | (78,742 | ) | (109,073 | ) | |
| Net cash used in operating activities | (4,135,668 | ) | (3,680,494 | ) | |
| Investing activities | |||||
| Purchase of property and equipment | (158,289 | ) | (138,375 | ) | |
| Purchase of intangible assets | (665,191 | ) | - | ||
| Interest received | 799 | 202 | |||
| Acquisition of financial assets measured at fair value through other comprehensive income | (5,700,000 | ) | - | ||
| Proceeds from disposal of financial assets measured at fair value through other comprehensive income | 1,910,350 | 2,913,530 | |||
| Net cash (used in)/ generated from investing activities | (4,612,331 | ) | 2,775,357 | ||
| Financing activities | |||||
| Proceeds from issuance of share capital | 6,471,433 | - | |||
| Proceeds from initial public offering, net of issuance costs | - | 3,739,990 | |||
| Proceeds from following public offering, net of issuance costs | 2,314,050 | - | |||
| Interest paid | (6,102 | ) | (3,401 | ) | |
| Repayment of other borrowings | (16,433 | ) | (21,665 | ) | |
| Advance to related parties | (275,663 | ) | (336,113 | ) | |
| Repayment of operating lease | (67,461 | ) | (34,142 | ) | |
| Contribution from non-controlling interest | 131,206 | - | |||
| Net cash generated from financing activities | 8,551,030 | 3,344,669 | |||
| VCI Global Limited and Its Subsidiaries Interim Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||
| USD | USD | ||||
| Net (decrease)/ increase in cash and cash equivalents | (196,969 | ) | 2,439,532 | ||
| Effect of foreign exchange | 431,472 | (11,702 | ) | ||
| Cash and bank balances at beginning of the period | 1,010,455 | 856,058 | |||
| Cash and bank balances at end of the period | 1,244,958 | 3,283,888 | |||
FAQ
What was VCI Global's (VCIG) revenue growth in H1 2024?
How much did VCIG's net income increase in H1 2024?
What is the size of the share repurchase program announced by VCI Global (VCIG)?
How did VCIG's business strategy consultancy segment perform in H1 2024?
What was the growth rate of VCI Global's (VCIG) fintech segment in H1 2024?
