TDCX - Earnings call transcript Q2 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome and thank you for joining the TDCX Second Quarter 2022 Results Conference Call. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. pleasure over would to my turn like It's conference the the Instructions] and now I to [Operator management. Please go ahead.

Jason Lim

Hello quarter XXXX Lim, to the call. TDCX call. management to welcome Investor Jason me of the everyone, I'm Head on Allow introduce earnings and conference Relations. second

We Executive Development. Corporate Mr. and Goh. Chairman, CEO, our Laurent Junique; of have Mr. our Chin EVP our CFO, Tze Founder Mr. Neng; and Edward

subject I'd like the forward-looking to remind risks we may that and make are future. in continue, you statements, will not which we to realized uncertainties and Before be

forward-looking You of Also, should not such EBITDA place reliance financial and non-IFRS net call on as discussion margins. any adjusted a adjusted EBITDA, income adjusted statements. margins, includes measures, adjusted this certain income net

measures measures, on available the closest release the press our of please to website. the reconciliation Form which IFRS or For non-IFRS X-K, refer our are to

a into amount to or Singapore This as rates. We converted was the other translation be dollar not that have of a USD at as into of be any convenient for construed representation provided the U.S. dollar. translation This should rate Singapore dollar can to a done this S$X.XXXX. US$X

updates that, operating the on now financial performance. and With Our will to Laurent. management let share over hand please? me the call Laurent

Laurent Junique

And for Standards like tremendous support had welcome of a another the really together through paid all I’m building clients so we of British that results. to put whole challenges. us. Once quality their has by and resolve, And I'm also for their the efforts second I people TDCX at off. to set strong TDCX market’s determination, and also quarter performance ISO results has happy the on reporting report emphasis and Institute certified everyone. to quarter, during Hello briefing keeping in to carbon macroeconomic have XXXXX-X. happy again, for wonderful our another the of our proud our XXXX. faith thank footprint appreciate overall deliver We're outstanding of would and working navigated competency environment the

corporate incorporated our social so And initiated, TDCX we with Foundation. responsibility just

is fields with here access, and of affluent digital through to digital partnerships specifically key capability work three digital support. Asia focus readiness on long empowerment, of in and communities literacy Our digital building or small business term terms in

travel me We delivered at revenue clients growth make by our and our from revenue performance. and QX who our million. to driven ex-top pace verticals, are growth contributions pace was Let from in of XXXX. revenue S$XXX at XXXX some since clients twice highlights media, and hospitality and cover advertising the million especially U$XXX group strong financial of XX.X% digital or as This key QX five growing including the across in fastest robust listing

our from contribution compared revenue including XX% hospitality, of XXXX. terms of in clients Now travel QX to continue trajectory verticals airline its recovery and about at

output Our still below revenue reopening the I in as to grow. confirmed Asian for And prospect Asia travel, higher from some travel exciting North of and is speak. of peak XX% space still room us our We're and quarter XXXX, this now hospitality QX compared in there from to XXXX. is on be this not yet, travel course, global of dependent will is this one especially but an the

and eCommerces We're crypto, happy approach largest also FinTech exchanges database, more of and a vertical. progress year risk rise bring are before, as as other the payment variety things always we're the verticals, remain clients careful companies. space, FinTech And revenue quick to the the this recap, X% year continue manageable. to different add we it across On business. looking clients a to such our we contribution to in on in serve with side, around shared percentages taking before is high to to and we are grow a while continue at To third our

vertical, to advertising percentage marketing the acquisition the of we year service, growth continue in media and deliver and digital new by on double-digit the sales clients. digital On our year strength powered

focus onboarded social we QX. like media before. business contribute expansion. clients the growth S$ for yet. out quality the for quality which platform, on On time $XX and year video will in million. we've cost have with net of for shot-form rose we and share comparison, or We basis earnings press our to happy the a terms group any leading our to meaningfully made like contributing on It adjusted year shared XX.X% revenue, growth, started new We start to X.XX progress take our or strips XX performance with I maintain but income, plan in are million

activities continue of industry with the incredible efficient million this to growth cashflow control for want take US$XX our deliver year in cash XXXX. professionals also team continuous and doubling leading strong and QX is the We from year. The to cost almost thank EBITDA net in in adjusted of XXXX CFO, operating our XX% worth profitability planning. Chin Mr. shown our I And of his margin efforts earnings quality QX to conversions, opportunity on

monitoring. from are the well services view content service as such From and point our services of services renamed data will annotation segment safety later and helps ability XXXX, CFO the and listing share results as related machine moderation moderation of content, comprises The who services moderation growing security reflects larger track safety have out the Our other learning. trust The the for and group and to our services the of and section. content, on QX content the we industry's services. those ensure enhance authenticity safety as and monitoring change in as our of and performance. content trust services numbers includes of Trust business and trust safety

total internet addition internet million program the Google, U$XXX users, from XXXX. Asia first a Asia half expected at internet economy the of economy is [indiscernible] Southeast the by Southeast revenues. XXX of of revenue while total reach to In Southeast billion Our stands of Asian XX% now has by XXXX latest

financial which and strong services have with will exposure investors has digital delivery e-commerce, However, Southeast growing on Asia footprint leading fast provided with transformation. digital food

are Our sales flexibility region before launch operations Vietnam well end as the offer are key and to allowed Asia to market decentralized in in aim there model we year. on-track the the a further centralized of model. of we languages window team new adds as Southeast a multi The

Asia is momentum North contribution the of revenue. of with addition, In X% gaining

This Our timely rapid now team competitive to the outsourcing I'm amid going our changes confident the emerge expansion business even with Pacific, was ourselves America well environment Asia a edge objective changes Latin is in positioning more and provide the us with in stronger the Europe CX forward. space. the planned with will strategically and in

deals two QX in and planned this more half first airline our the business the demonstrates wins, than Southeast have of our platform. Asian leading triple one added signing in includes sector. of largest leadership on logos half signed vertical XXXX. again, we travel This development confirms in up e-commerce by market logos and our integrated and the in momentum, first once of the XXXX, Now e-commerce of a continued regional total the for we XX strength This

of compared June compared XX% client XX first up stood QX our at XXXX, client year represent Our at stands our XXXX, XX XX% now in of total economy concentration count to the XX% XXXX as now excluding QX half for reduce clients XX% XX% from ago. revenue to launched of efforts and new to Revenue XXXX.

an well hand to the as to update on as financial details cover Mr. Now Chin over the guidance. I

Chin Tze Neng

to Revenue Thank which XX% planning. XX.X% contributed tax rose for excludes share-based US$XX driven performance higher at you, share-based earnings EBITDA, net performance. the period plan, comparison by to US$XX basis, Adjusted and in omnichannel, on digital for on Net the we did and marketing share do lower million. expense of financial CX digital like-for-like million, actually US$XXX a the Laurent. last Net income, QX as a stable income the which largely which not rose XXXX growth period margin evaluation million year, XX%. reported and remain as across expense. share while well Adjusted was profit exist excludes a XX.X% or same sales per XX.X% will our rose

more in Revenue from the million, driven sales XX% expansion by that omnichannel solutions to existing offer. and business our rose by revenue of performance we our US$XX share in services campaigns on we Next, feedback QX volume verticals. due details to high technology

on by and million as currently the will to although our XXXX up to quantified and the safety marketing XX% digital travel In recovery from to respectively. QX hospitality sales from mortgage the content, pandemic, US$XX yet and revenue omnichannel addition, reasonably of be other sales food, XX% to trust gradual sales from recovery hospitality services which clients. and digital impact the digital In X% reported has safety. trust services solution trust be identified Commencing content, services. levels. be primarily QX now will continuing and and business safety can increased COVID-XX expansion rose and due the services US$XX trust by an of while vertical. share at increase million omnichannel Revenue our from and pre-pandemic reach XX% for sales trust campaign reached benefited XXXX, price services volume content, previously and and moderation as in safety monitoring business is safety In marketing service in XX% content, classified – client XXXX to Revenue volume from a advertising that a QX content media from by due were and viewed of and travel business, from and and key existing is

next our me on share expenses. Let some details

costs operating XX.X%. For percentage QX stood XXXX of at revenues as a

stood due a largest our Employee remain year this expenses on like-for-like lower at same operating benefit expenses. depreciation -- costs XX.X% PSP Excluding period year last XX.X% than of the portion basis, total last the lower base. to cost for

by benefit million expenses increased QX. for XX% employee US$XX to Our

a XX% the the to on revenue of benefit operate by employee costs an like-for-like our and growth having platform would competition increased for respective of in risk costs markets talent PSP in. higher XX%, increased Excluding have expense we basis that assuming

X management. X% lastly expenditure growth, transport declined revenue duplicate Singapore, telecommunication than which demonstrates depreciation with Our All and continued and on expense recruitment, rose renovation include our as other items such in which incurred. Philippines expenses XXXX during due lower Thailand cost capital the being the depreciated period for assets of to QX no by X% proven focus fully expenses

last financial rose which with XXXX the million, segment. of US$XXX not year. EBITDA of implementation of Next, at half performance. details XX.X% XX.X%. driven and the income a omnichannel excludes the US$XX Revenue XX.X% period period first digital share our marketing Net profit reported let did Adjusted which share X.X% US$XX net in based million sales stood now similarly and to stable shared lower for XX.X% me by rose margin and rose [common growth business at some and the see in the on by a expense we impact million. the basis, appear same lands] Adjusted

US$XX solutions volume the terms of from by to from campaign due primarily safety US$XX volumes marketing of our X% XX% and and offer the million US$XXX content, to marketing hospitality million of in the the trust by went content, vertical. in from sales advertising respectively. services about Revenue business improvement XXXX, the to campaign. by the with performance at In improve driven expansion and omnichannel two-third up to and in omnichannel stood In we XX% trust of rose business, and media client sales Revenue safety services. XX% services digital for and CX first existing due an digital the and half while rose travel to by XX% services XX% our sales million, existing higher mainly expansion digital

expenses. share XXXX half first for half details our trend a me XXXX some revenues QX, The [last Let [indiscernible] percentage at XX.X%. at of operating year] costs first stood as on

expense this costs, expense. competitive from XXXX same faced market of has for by depreciation we first stood US$XXX half by to as due of lower higher million solid XX% wage PSP division. than benefit XX% to XX.X% cost to increased due it increased the Excluding excluding period the PSP and lower dynamic XX.X% at Employee cost

to All lower first our due other largely half our depreciation assets prudent expenses renovation declined rose cost efficient XXXX expense Our continued and for X% curve, which by X% depreciated. certain by management. illustrates normal than

update on XXXX an Lastly, provide let year outlook. full our me

which are FY XXXX reintegrating QX be We enhancement. results outlook our should

Singapore XX.X% unchanged represent is million. XXXX. XXXX dollars. The revenue XX.X% remain revenue in company's full US$XXX year to growth FY financial at of Our This rate compared to information stated guidance

However, to of not eligibility the we the dollar check once currency strategy delivering provide the Singapore the to approximate conversion U.S. while number dollar. content [indiscernible]

S$X.XXXX, million million We $X million is $XXX to and to as guidance our of XX, XXXX XXXX around of dollars an US$XXX represent As there to which around $XXX of Singapore US$XXX of use in represents [indiscernible] rate approximate June to in no US$X the approximate is million. XX, [S$X.XX] which note that as FX March change term. effect Previously million. terms

to margin With to productivity that, We cost to Jason. management back our approximately hand EBITDA XXXX and continue maintain adjusted on to full will focus me XX%. let employee year over XX% to

Jason Lim

through Thank you, presentation. the Mr. results Chin moving for us

We are now ready for Q&A.

we that we'll at a Before take three please. you. the keep request questions just can maximum. I Q&A start, Thank your Operator, to

Operator

[Operator Sachs. got Please Pang the from Instructions] Vitt We Goldman first question go ahead. from

Pang Vitt

much opportunity, me. from question the for taking Thank and you very

growth to in to particular, third the What half What as we margin the on [indiscernible] local the are why [Certainly], Firstly, you assumption you achieve? in impact we this strong revenue number give that on of investment. In in question Can expect any two, further current sharply guidance? return to the noted level were to well, quarter. second us guidance guidance. a this? a that for one. [travel] reason Question while number addition decelerate is inflation if basic the that's can half the

opportunity So that's management's much for are you product additional provide? seeing you with view countries it, provide And of of services around we Furthermore, can question, what you the any the in social clients, especially existing can and you. around is are global also So color the question current in are last and you what colors the that any representing the like from global sectors, coming and cutting top Thank space, you serving? that how new of in provide around around them tech is costs, and what two. comments what slowdown growth further what number any are now kind can logo color customer? media kind your

Laurent Junique

is very the you question. much Hi, Laurent for Thank Pang. Junique here.

than our as first to So, the guidance revised quarter. for were yes, it full clearly, guidance, the the and were which much really at revise on geopolitical the macroeconomic there has last very the out already landscape in improved and guidance. year really rather new what have not obviously we we retrospect, of and transforming we've information was this at reiterated In having time. On time, we go quickly one expected

our XX.X% half my half half. well guidance? to So First revenue did in all, I as the year of first for fantastic decent also, a that the of done is summer have But throughout we they the very first job growth we operations, why have, like our the would -- comment strong we've teams in were very Now reiterate this and of a doing well. results their

receive results and the business our operations our deliver really they and So and development. efficiency the our management of

in we the about of new In new brought XX So first we added times in half, logos. logos mentioned new than logos. three year, last

end hence visibility of have a challenges happen seasonality, obviously our some the come so around of from to what around protected inflation, have more bit customers a or before to everyday to, Nonetheless, challenges to the number year. guidance. this variability, We're end year, can attrition, never us a that the to of around you're visibility with completely shielded growth challenges we the the enough or at moment stick possible helping bit that's So bring getting the closer customer. more we may

your was second that logo the So refer important question. And to wins, new to reiterate. to

So additional color here.

XXXX on So half. -- we're the quarter, half expecting the sorry, new logos second second for first in

companies, insurance the regional e-commerce brought You very and is video platform the one quarter, this three from airline second Fintech in regional a platform. remember short-form the that client. player. cloud won quarter, We exciting first And that we Asia

in different of not a and So nutrition space. as just clients new sectors well economy variety the in

years. so So a variety has of team logos, well very really obviously and these performed our has worked all above

And an so are first this came in our thing from engine business. ability to is we new with drive into the growth front. our that confidence working, entry and on really we is organic delivering started to point win as The beginning the we objective building

starting off. the still of moving that some as in there they not forward logos pay So are these the group But coming there's have ability well, been XX really are [indiscernible] our have that from XX is launched yet, upside been launched. to growth accelerating so in but that quarters.

that’s probably news. And the later so

relating tech, impacting question or your -- ourselves. that sectors a that and to Now how impacting is us? tech difficulty] so much sector tech are anything businesses the [technical not maybe

of filled business advertising Right under we going product we of now is have depending happen think is could in space lines So quite space parts advertising that and pressure think digital and as numbers, solutions be getting work we bit marketers a where understand for fastest as our more pressure. the advertising to the is that the more what digital of in know and that the the pace possibly with seen its in that digital we on services we in growing true -- certain of the marketing TDCX. once digital the it's the industry But and at is outsize for we’ve for sector. we omnichannel again competitive, some

So significantly and that's sectors that in one we hospitality area we're picking impact. the trouble are up speak. And quite as watching watching

that also physically. there's how as in comes it Asia, travel not Japan, in is Asia and potential impacts and -- here has recovered much think we'll not a and North with that in us happening, upside China. I see When

face So some than watching slowdown impacted -- space. somehow we and others that's economic the more are of time Every in the how back are benefiting. are

into account want fact or and state we our and to everybody a do -- we justify. when we that want don't don't I I generalize and -- blind So forecast take to

share. what So I that's could

Operator

Credit question next is from Ahuja Suisse. Varun The

Varun Ahuja

Three question. opportunity. the for Thanks

comfort I unusual that the ago, stock visibility visibility, to your months And views love they're so are three almost think XXXX, And now. on do to hear in using you how the you have First, about in during you nine months six as community that's three months could comment a same, months declines, second to the in in but much progressing if can, compared six into the may months on you revenue? on if business and visibility. And do see these terms have personally? six it of ago, next growth stability, you comment how like, review, half that

Number how client XXXX? which new about know your of market would XX. two, look I it in you – and But at XX. around see being addition, number you I can about to talked if know like think you XX, December, talk is clients if is I was

So churn and restructuring that there completed have significant you unprofitable phase has been had understanding where you’ve accounts. my a is

on can very and on So added XX dynamics, it there anything are on XX would looks fairly how comment little that private companies of come you're churn side. part environment, and to what's high, cash the front? the bit the may if valuations that the domains especially and we even strategy, of down your insight, at given this in the as you have given flow missing in here, Third, happening we looking Is also. love M&A growth it, hear of

The at be up are how has moved helpful? just looking quick more question. And lastly, would quarter. that tax this you one So that rate space

next Chin, years? think about how this we you. comment, if should the you quarter Thank has and can should in few think we about it, over So what happened Mr.

Laurent Junique

much very the you question. Thank for

question. So if I regarding correctly your the understand visibility side,

to the are and are I maybe of still time We've of market budgeting X one that to budgeting vision, would reasons, terms for to the of volatility well We that us and to doesn't to visibility We're have a help in months to good of months. the with uncertainty adapt where clients visibility. facing really occasions. having and X in terms as of much. of in some few very plans planning in say, duration. The our cut to for X it's listen, range tell So X early the used

There re-entering of budgeting We October. window right a the is are clients. now our the in process of month

is year are as So views to out I XXXX point, this within at looking think that. there clear

kind we this to what wide the not thinking these unusual. period how and the and working involved it's of So getting are going they next of are clients and we year have. thinking at make year kind of year and ideas that be quite It's are going common on of with that projects ideas strategizing and to discussions in and what

And to it beginning as we as in so happen this -- did is September. speak happen

for now, visibility will terms next are. of that's hopefully But So where we year in expand better economics.

On think got, that the later some we But very numbers. the client it's can a in of detailed I question maybe it. think, calculations Jason talk of I side about

And provided, [the You not retention first said] that we got did usual. mention you I a very, mentioned as adding has clients. want low]. high as contrary, anyway in confirm just numbers there was [very clients the have low churn a just on reasons, evolved churn. at And that high in very to It's the to really client we're we very and retention we've revenue are us.

them yet, this time, announced, haven't launched those at same area on we've it. So our we that's that

size -- a bit maybe We have Jason, and more you'll here. provide color enough But

Jason Lim

Yes.

mentioned over are added addition, XX not year, total. I half think, at although still we the that's launched clients it yet. in added XX because up for XX sort of they clients 'XX into the add We And December. doesn't So Laurent

I we So from logos actually different the hope that the is helps. launched active have. client, client that

capital Let management, just Is sort and repeat the question have cash on big that have correct? me you management. like you I flow of think -- capital the is

Varun Ahuja

Yes. see M&A you And would since outlook? to the side. on months it's the consider six more What almost

Laurent Junique

so down I M&A Jason, then maybe he road the management. absolutely. later can about can talk Yes, on touch capital and

his team looking once And again and more. targets. want if quality close reviewed some mean, we're XXX just that we Edward that worked hard I reiterate have So and not interesting situations very to on front. here, I to targets have for about Goh opportunity,

in a where we that are looking we there that ones know, takes started to we we are have number pipeline, meet Once and absolutely But a can a for again, and you the nice know leverage we’re the from bit as one. growth, obviously, organic direction. of So following this targets a a acquisition criteria bit we be choosey portfolio. picky it But soon, time bring it But I and it hope we'll of your we're have we certain and useful. that that number time but takes be We obviously, conclude, that bank quite our some to will of targets. accelerate would interesting. to use, a And the big cash we targets will on growth that very nice to day that have want our attention be strategy. we

So and that's working forward us for more you definitely well looking it. telling this to at stage about

Varun Ahuja

question was The tax the last side. on

Laurent Junique

on to Chin, want you view the tax?

Chin Tze Neng

What question on was the tax?

Varun Ahuja

So quarter, XX%. tax this rate looks the effective like

full tax? that about the should discussion the earlier to happening and how is year, we so think I think XX% XX%, there, meet over should which anything suggests

Chin Tze Neng

come one of situation And due we the really the enjoy the quite is the two, also Malaysian two stated that the Malaysia income the budget. is holidays We'll of on Tax -- -- the on and driven a have this we is this implementation for have year's Prosperity the is the all suspended the last Philippines, for that tax manufactures, that government -- quarter the FX for that The of two tax for bit to of and -- while. in group. to we Malaysian employees to by higher still tax -- have because compel effective workers by the quarter Philippines of getting office, -- factors to We And for we're quarter get the incur this tax Philippines. expense with announced are unable was work office two Philippines home number that of to situation, certain we from working the back to in as standard main to Philippines government. second the in opposed target time be a exposure deal tax these from meet by the unit these to the the

Laurent Junique

question line. we other go to the of Before sort on the

I us clarify a couple data was have of in think I webcast earnings. to some on questions terms a [matter] big of the the think points the during because presentation we call, asking

questions, now the up of last clear the versus concentration customer top as QX to XX% XX% year. just So two QX XXXX is

and we at still XX% last travel that XXXX. had the the in is of year, quarter level QX highest of terms stood In space XX% hospitality some this peak versus

So next on those we please up. are some question the next line. that of caller, are the Operator, points clearing data

Operator

is from from Han The next question Tan HSBC.

Han Tan

My first that contracts question traditional you noticed non allowed of is, companies. I tech

do expect this Do of you think contracts marginal So margins? you new in to dilutive over be terms about these accounts how growth?

Laurent Junique

the so I we Thank new economy majority number very in of but the you mean, have for question. much Yeah, still clients a the remain sector.

who wo in traditional growth we good as have due are potential economy nice relationship early to in more growth these And of products we're they that believe are the there's still of companies, coming Pacific, are well the that as Asia fast as We a in fact the in this growing region. --and range of most the region our in fast range well. clients although are

is fact brands where as concern quite we this Asia, and It's they and that in the XX% considering some it that in said business XX% that new is is have not also economy really But of of them we still point. well. new time we've at well, the for with need. a our the deals So sector economy, as absolutely interested material

market option potential have for an can as So where well we share. we gain

Han Tan

Thank you.

Just wondering quarter, have would there any if some like -- if is news third the that guidance? you projects? could So you you revenue your feel negatively? share any slowdowns macro [indiscernible] information, do impact in And on you

Laurent Junique

have some QX. Yes, revised we in slowdowns, impacted, we our mean, guidance there's if I may be further

the accelerating see We've accelerate guidance for clients’ it's as in of down. if travel factored just of reduce. slow it trying and sector yes, over watched to past. reiteration some decisions it's time as well as -- the into you at and have the projects, space visibility the point. back really in this continue accelerate we some to I implementation. have still look right lower either the We at whether projects this I watching then unfortunately And been so the or to watch. see slow nice On now, that's slowdown. over control, mean, delays, some us us is We or well. help pushing and to to the delayed out going of don't It's something to our mean, depends on for

Han Tan

Thank you.

I think And my final the maybe of half second tailwind might the year? are growth question for of is next how be -- on seeing? vendor for consolidation, that you a this much

Laurent Junique

you're about talking our competitors right? So consolidating,

Han Tan

gaining their you market consodilation? Yes. Are share from

Laurent Junique

I we've some we So hear in mergers sector. further of mergers seen maybe the mean, and potential

something the why very, going scale through So is journey going that is and we're this focused the very had much we very through. That's becoming business are we anticipated.

The is us a expanding combined competitive want important bigger players. in of bigger footprint to global to with going first one competition is super who global, scale the having and globally global larger clients, who contract more and with growing face remain to are

So accelerate geographical racing one global ways is is reach M&A objective. through we And to goal of and that are expansion. that pursuing then to the second right important TDCX any now the

So yes, it's progress strategic as items on possible. to as our list of quickly we important that want

Operator

is go The ahead. from next Woo. question Please Jonathan

Jonathan Woo

my taking for question. Thanks

you more about maybe got Thanks. that in continue give the repurchasing how we to about expect a is $XX the our second noticed can question about rest on half a of us there to $XX there quarter million the benefit moving share could expect whether million that, allocation noticed – share the first, left? in color we And can little foreign Maybe moving ops. repurchasing. go, that, how share kind to year, is The for continue a exchange given million repurchases, from little the of on was than this bit slightly done I second you've benefit of of XX terms bit from almost year? I differences that? only of you on a forward And you've elaborate into while

Jason Lim

have Jonathan, think we don't FX are at? you not in line us, million XX P&L. looking please you benefit. sure tell which where you the specific are Could have got our I we that

Jonathan Woo

above It's the the comprehensive line income. right

Jason Lim

Other income. comprehensive

Laurent Junique

Oh, income. other comprehensive

relating It based of tax. Okay. which assets. would That's the our relating or currency effect from not -- before not net to the not translation the on profit the business are to embedded transactional currency be

currency we of all countries – assets translation translation operate. our impact is that of the a net foreign So the to our that subsidiaries due in

I Malaysia come those Philippines, units So in as unit. to the correctly, the opposed smaller the may mainly terms larger year, amount bigger the recall last of if from

So level. our is FX nothing of to that the effects transactional do with

Chin Tze Neng

around by indeed five program, question for buyback, we been months the last the since share on we've guided principles. buyback started Jonathan, the key share two

is a product one in market, impact valuations how and First float. around sort shares of also stacked but sort against of up on might the liquidity and

programs, given $XX they've monitor implement And announced management that million the on deployed if So million we've share to to need to to two continue and will that buyback based these around program, $XX continue this guidelines. date.

Operator

comments. no There are hand questions at further the time. I And closing back for manager to this

Jason Lim

that was is there I line the a I -- bit because on premature, KC think there's from CIMB. on [Francie], see line a

Operator

KC Ong. Yes. Proceed.

KC Ong

potentially bigger the I Western countries think of APAC. just recent the now, your peers if that you trends offshoring some given just most in about in logo BPO are mentioned But could we some of also or campaigns, your wins from space? mentioning logo from wins potentially that wondering be are

Laurent Junique

just the you the line, very last Sorry. line? Can last repeat

KC Ong

to is management BPO or seeing companies if countries, internet offering potentially services trends, international for wondering their APAC? example, Just from potentially offshoring from Western firms

Laurent Junique

Yes.

multiple one into that opposed a clients we have country. to for per as basis number on or an you of and wwon domestic. clients more are depending we to on offshore, offshore Western who then for centralized quite at boarded think, have I those originated a work are in a companies countries of clients work companies doing a decentralized of by how number a in example, lot we've we those cover Asia the that addition number location look a and model Malaysia operation, on to And

in we client joining us So for pretty have going insurance won example, one that’s Japan, domestic. to be that's

The Japan other in well one -- is actually one client as another domestic.

to example. in a -- based it's in cover the offshore for variety clients -- travel is that to So U.S. Colombia,

covering languages, So all one the yes, for example. we Asia, are central -- airline location the airlines, the regional the where in

work, is got question correctly. offshore of the really do still of majority for we So stage what if the the the center large at I

Jason Lim

KC. Thanks,

So a of out webcast. let me that the just we from have read couple questions

profile at different are customer margin are same For we getting, from customers? existing that the the new or additions profile they margin

Laurent Junique

Yes.

we very our criteria, [plan] that mix general, are So that. There strict apply and and question. meeting financial we CFO is on a of -- thank you that in brought contract depending that a the variety have profiles, pursue, of for on margin our strategy the is our we board as on picky criteria absolutely on quite

Jason Lim

you. Thank

we share wage from inflation? some inflation, about how managing wage Benjamin, question color? Next you more are can And

Chin Tze Neng

as more I our operation, also side, in on is the we think escalation, cost crucial a operating that utilization, ever help efficient case enhanced is to our But the inflation are pretty impacting than flip efficiently think factor is resources well. I on revenue of our resources Yes, only the things. before, efficient year, we our help buffer of keeping Precision our rich is earnings these pressure. non-rich factors. in ways lower cost capacity some buffer -- against always especially inflationary as side to side, half possible this also on first are And flip of all address on and productivity the

several nutshell, So, adverse think our to issues. address inflation in help parts a I moving

Jason Lim

Chin. Thanks, Mr.

Next question seem growth please? down. two slowed color from Any Julian, your that, customers on top have to the of

Laurent Junique

an sales quite said actually, So could know, is do is market impact of digital sales good strong of I well mitigated and a the important it's by the in advertising which appetite mixed on competitive, think come as becoming concentration we to are one bag our our that, clients kind like -- top think client, we us engaging the down, for have marketing thing. you has challenging us put and that that more that environment advertising fact And digital in situations. a two to earlier of quite We the and very as but marketing. also also us, digital the digital the and is more it's

So see we that growing quite significantly.

I couldn't increase. So rather a call a possibly slowdown that significant

more advertising the know, important, as brought short-form a general. we’ve And They're I'm to space space. we talking of to the been show those balancing P&L. in digital they've the clients -- up you do about starting They're and really So starting of it's our the on is for in that work in video implemented. of nature probably additional funds

and sector, behind another We’ve actually is down, the not hospitality slowing for worst the The now. TDCX opposite. big which had So us is that's years sector travel good.

QX So actually And XXXX. it the higher. grew what It's but a -- still XX% XX% year-on-year then XXXX XX% behind it behind it's numbers. probably bit in versus used be to

bringing Asia that when. have -- room is into we they clients we and revenue into just And growth, from [indiscernible] that account we developing don't that are new mix. yet two that benefiting clients a there a again, whole now the have then and are know logos the So for be large has group reopened for becoming again that possibility, mature accelerated we growth are new could And not us. taking of

the brand quite nicely out overall for is So us. turning

Jason Lim

Laurent. you, Thank

Next question, Airbnb? on Any again from update the [indiscernible]. the webcast, from the

Chin Tze Neng

add here. will I

half Laurent Let mentioned, and me where with still timely, Obviously, really take very on one. hope to that as breakdown, as the we feel just as this. some I back you this really with are The good good. possible. soon ongoing, very We about further discussions are think, going we share travel information

able very something that. to you with this So on I This hope to ours, of strategic that client even so soon. share be then still -- with ties working

Jason Lim

Thanks.

have question. I one time just last think we for

new people able Have been the we able same on to are we or line. Two build question last actually. So inflation asking wage question contracts? the to our

Laurent Junique

to to living we have but all. are not funds able the we do and have adjustment, cost actually, of this Yes, some

for living So everytime of take of we pass been a ours this of really indications. a very retain situation number show the on have not we protecting interest, ask their And of to is our again and are employees really just successful opportunity as to the the that go cost manner quite as having in to suggestion clients that to that this adjustment matter back crisis well a we value. cannot maybe and actually in that systematic to happen

So we to in number a in not. some have renegotiate don't, suggestion. the successful, But some we’re sometimes we’re are have we thank contract, you for cases [indiscernible] we’re of able your and when to, who able clients

Jason Lim

have the you we all Thank us. joining time I for call spending think the on that's time with us for today.

us, you can questions, this. management have like on to any follow-on And time reach just out reach of to up your and are to we If me you for off. signing you out behalf thank for

Laurent Junique

Thank you, everyone.

Chin Tze Neng

Thank you.

TDCX (TDCX) 24 Aug 222022 Q2 Earnings call transcript