2023 Q4 Financial Results
MediaTek Inc. Reports Fourth-Quarter and Full-Year 2023 Consolidated Results
MediaTek discloses Taiwan-International Financial Reporting Standards (TIFRS) financial measures and also provides Non-Taiwan-International Financial Reporting Standards (Non-TIFRS)Note1 financial measures as supplemental information. Non-TIFRS financial information should be considered in addition to, not as a substitute for, TIFRS financial information. Earnings distribution is made in accordance with financial statements based on TIFRS.
Taiwan-International Financial Reporting Standards (TIFRS) financial measures
-4Q23 consolidated revenue of NT$129,562 million, up 17.7% quarter over quarter and 19.7% year-over-year
-4Q23 consolidated gross margin of 48.3%, up 0.9 percentage points quarter over quarter and the same as the year-ago quarter
-4Q23 consolidated net income of NT$25,713 million, up 38.5% quarter over quarter and 38.9% year-over-year ; EPS of NT$16.15
-2023 consolidated revenue of NT$433,446 million; EPS was NT$48.51
Consolidated Revenue
MediaTek Inc. today announced financial results of fourth-quarter ended December 31, 2023. The fourth-quarter revenue was NT$129,562 million, up 17.7% sequentially and 19.7% year-over-year. The quarter-over-quarter and year-over-year increases were mainly driven by the better demand from smartphone customers.
Full year 2023 revenue totaled NT$433,446 million, down 21.0% from 2022.
Consolidated Gross Profit and Gross Margin
The fourth-quarter gross profit was NT$62,616 million, up 20.0% sequentially and up 19.8% year-over-year. Gross margin for the quarter was 48.3%, up 0.9 percentage points from the previous quarter and the same as the year-ago quarter. The quarter-over-quarter and year-over-year increases in gross margins were mainly due to favorable product mix.
Full year 2023 gross profit was NT$207,367 million, down 23.5% year-over-year. Gross margin for 2023 was 47.8%, down 1.6 percentage points year-over-year.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$37,881 million (29.2% of revenue), compared with NT$34,248 million (31.1% of revenue) in the previous quarter and NT$34,175 million (31.6% of revenue) in the same period in 2022. The quarter-over-quarter and year-over-year increases were mainly due to higher R&D expenses in this quarter.
Operating expenses for the quarter included:
- R&D expenses of NT$30,472 million (23.5% of revenue), increased from NT$28,242 million in the previous quarter and NT$28,047 million in the year-ago quarter.
- Selling expenses of NT$4,659 million (3.6% of revenue), increased from NT$3,745 million in the previous quarter and NT$3,666 million in the year-ago quarter.
- Administration expenses of NT$2,749 million (2.1% of revenue), increased from NT$2,261 million in the previous quarter and NT$2,462 million in the year-ago quarter.
Full year 2023 operating expenses was NT$135,568 million (31.3% of revenue), decreased 5.9% year-over-year.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$24,736 million, up 37.8% sequentially and 36.8% year-over-year. Operating margin for the quarter was 19.1%, up from 16.3% in the previous quarter and 16.7% in the year-ago quarter.
Full year 2023 operating income was NT$71,800 million (operating margin: 16.6%), down 43.4% year-over-year.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$3,580 million, or 2.8% of revenue, mainly from interest income. Income tax expense for the quarter was NT$2,602 million.
Full year 2023 non-operating income was NT$14,983 million, higher than NT$8,773 million in 2022.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$25,713 million, up 38.5% sequentially and 38.9% year-over-year. Net profit margin for the quarter was 19.8%, increased from 16.9% in the previous quarter and 17.1% in the year-ago quarter. EPS was NT$16.15, up from NT$11.64 in the prior quarter and NT$11.66 in the year-ago quarter. The quarter-over-quarter and year-over-year increases in net income, net profit margin and EPS were mainly due to higher revenue in this quarter.
Full year 2023 net income was NT$77,191 million, down 34.9% year-over-year. Accumulated EPS was NT$48.51 for the year, compared with NT$74.59 in 2022.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT$180,673 million. This represents 28.5% of the company’s total assets. Cash and financial assets-current was NT$119,324 million and NT$164,810 million at the end of previous quarter and the year-ago quarter, respectively. Financial assets-current portfolio includes mutual funds, bonds, derivatives and so on.
Consolidated Accounts Receivable
Accounts receivable (net) at the end of the quarter was NT$55,106 million. The accounts receivable turnover was 41 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 44 days in the previous quarter and 45 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$43,220 million. The inventory turnover was 66 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was lower than 90 days in the previous quarter and 126 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$101,536 million, compared with NT$14,966 million in the previous quarter and NT$59,034 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (January 31). Materials for the conference call will be published 30 minutes prior to the call and an audio replay will be available in one hour after the call at the investors section of MediaTek’s website.
https://corp.mediatek.com/investor-relations/financial-information/quarterly-earnings
Schedule:
Date: Wednesday, January 31, 2024
Time: 3:00 – 4:00 p.m. (Taiwan Time)
Language: English
Webcast Links:
https://webpage-ott2b.cdn.hinet.net/webpage/live?contentProvider=mediatek
Investors who want to raise questions may use the toll number below.
Dial-in Number: +852-21121444 / +886-2-33961191
Password: 1312531#
About MediaTek Inc.
MediaTek Incorporated (TWSE: 2454) is a global fabless semiconductor company that enables nearly 2 billion connected devices a year. We are a market leader in developing innovative systems-on-chip (SoC) for mobile device, home entertainment, connectivity and IoT products. Our dedication to innovation has positioned us as a driving market force in several key technology areas, including highly power-efficient mobile technologies, automotive solutions and a broad range of advanced multimedia products such as smartphones, tablets, digital televisions, 5G, Voice Assistant Devices (VAD) and wearables. MediaTek empowers and inspires people to expand their horizons and achieve their goals through smart technology, more easily and efficiently than ever before. We work with the brands you love to make great technology accessible to everyone, and it drives everything we do. Visit www.mediatek.com for more information.