Scicom (SCICOM) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2024 was RM47.8 million, down 24% year-over-year, mainly due to non-renewal of BPO contracts as clients brought business in-house.

• Net profit for Q2 2024 was RM4.6 million, a 36% decrease compared to the same quarter last year.

• New clients were secured during the period, expected to contribute to profitability by Q4 FY2025.

• Progress in integrating AI technology and being shortlisted for significant BPO tenders; a 15-year Gov-tech concession contract secured, contributing from FY2026.

Financial highlights

• Q2 2024 revenue: RM47.8 million (Q2 2023: RM62.9 million, -24%).

• Q2 2024 net profit: RM4.6 million (Q2 2023: RM7.2 million, -36%).

• 6M 2024 revenue: RM106.8 million (6M 2023: RM125.2 million, -15%).

• 6M 2024 net profit: RM12.4 million (6M 2023: RM14.7 million, -16%).

• Basic EPS for Q2 2024: 1.28 sen (Q2 2023: 2.01 sen, -36%).

Outlook and guidance

• New client wins and increased business activity expected to drive profitability by Q4 FY2025.

• AI integration and strong BPO tender pipeline position the group for improved profitability in FY2026.

• Gov-tech 15-year concession contract to contribute from FY2026; negotiations ongoing for further government projects.

• Management confident of profit growth for FY2025.