TDCX Q2 profit up 9.4% to US$21.6 million

NEW York-listed TDCX posted a second-quarter profit of US$21.6 million for the three months ended Jun 30, up 9.4 per cent from US$19.8 million in the same period last year.

This came as revenue rose 5.5 per cent to US$126.2 million from US$119.7 million. On a constant currency basis, revenue was up 11.3 per cent, according to the group’s financial results released on Thursday (Aug 24).

TDCX, which provides digital CX solutions for technology and blue-chip companies, said that it continued to experience strong client growth, improved client diversification and revenue contribution from new geographies.

The client count was up 52 per cent on the year to 91 as at end-June, compared with 60 clients from the previous corresponding period.

On a Singapore-dollar basis, profit for the period stood at S$29.3 million, up from S$26.8 million in the previous corresponding period. Revenue, meanwhile, climbed to S$171.1 million from S$162.3 million.

Revenue from its omnichannel CX solutions services rose 7.7 per cent to S$102.7 million on higher business volumes. The sales and digital marketing services segment, meanwhile, was up 15.5 per cent to S$45.1 million.

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However, revenue from the group’s content, trust and safety services segment decreased 19.3 per cent to S$21.8 million, as volumes required by existing clients in the digital advertising and media vertical contracted. This was partly offset by higher volumes in the travel and hospitality vertical, TDCX said.

Meanwhile, revenue from other service fees advanced 70.3 per cent to S$1.5 million as existing campaigns expanded.

For the six months ended June, TDCX’s earnings grew 15.4 per cent to US$41.7 million from US$​​36.1 million. The results translate to an EPS of US$0.29. Revenue was up 6.8 per cent to US$247.9 million, from US$232.1 million the same period the year before.

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Shares of TDCX lost 22.3 per cent or USS$1.37 to reach US$4.78 at Wednesday’s close, but were up 2.5 per cent or US$0.12 to US$4.90 during after-hours trading.