VCI Global revenue jumps 37% in first half 2025 on tech segment growth

KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG) reported a 37% year-over-year increase in revenue to $18.7 million for the first half of 2025, driven primarily by a 434% surge in its technology development, solutions and consultancy segment, according to a company press release. According to InvestingPro analysis, the company appears undervalued at current levels, with strong financial health metrics and impressive gross profit margins.

The cross-sector platform builder, which integrates technology with financial architecture, saw its gross profit rise 17% to $15.1 million while maintaining an 80% gross profit margin for the six-month period ended June 30. This performance aligns with the company’s historically strong margins, as highlighted by InvestingPro data, which shows a robust 54.4% gross profit margin over the last twelve months.

Revenue from the technology segment reached $9.3 million, compared to $1.7 million in the same period last year, reflecting successful rollout of enterprise-focused AI solutions. Meanwhile, the business strategy consultancy segment generated $8.1 million, down from $11.2 million a year earlier.

Net profit decreased 13% to $4.7 million compared to $5.4 million in the first half of 2024, primarily due to higher operating expenses and increased investment in AI infrastructure.

The company reported significantly higher IT expenses of $3.3 million, up from just $8,900 in the prior-year period, as it expanded technological capabilities in generative AI solutions and AI digital human technologies.

"The first half of 2025 has been transformative for VCIG. We delivered strong revenue growth while maintaining industry-leading margins and reinvested in high-growth verticals to drive future expansion," said Dato Victor Hoo, Group Executive Chairman and CEO of VCI Global.

The company’s cash position improved to $2.3 million as of June 30, 2025, compared to $1.2 million a year earlier. Net cash generated from financing activities was $41.3 million, primarily from share issuances to support growth initiatives. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 9.36, indicating ample coverage of short-term obligations. For deeper insights into VCIG’s financial health and 14+ additional ProTips, subscribers can access the comprehensive Pro Research Report.

VCI Global’s strategy outlook includes launching GPU Lounge and GPU Cloud services, expanding cybersecurity and AI platforms, and growing its fintech presence across ASEAN markets. Despite trading near its 52-week low, the company maintains strong fundamentals with a healthy return on assets of 12.85% and minimal debt exposure.

In other recent news, VCI Global Limited announced significant developments across its various business segments. The company has rescinded its planned acquisition of a 20% equity stake in QuantGold Data Group Limited after an internal review, leading to the cancellation of associated shares. VCI Global’s fintech arm, Credilab, reported a 53% year-over-year revenue growth, with its loan book reaching $35 million and non-performing loans maintained below 3%. Additionally, Credilab has received conditional approval for a full online lending license from Malaysia’s Ministry of Housing and Local Government.

The company has also launched a new Real-World Asset consultancy through its subsidiary, Smart Bridge Technologies, aiming to capture a share of the projected $16 trillion tokenization market. In another development, VCI Global secured a $22 million contract to provide sovereign AI infrastructure to Codetext (BVI) Limited, featuring military-grade encryption and NVIDIA-powered systems. This contract was facilitated by its cybersecurity subsidiary, V Gallant Limited. These recent developments highlight VCI Global’s strategic moves in fintech, AI infrastructure, and asset tokenization markets.

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