2024 Q2 Financial Results
MediaTek Inc. Reports Second-Quarter 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
-2Q24 consolidated revenue of NT$127,271 million, down 4.6% quarter over quarter and up 29.7% year-over-year
-2Q24 consolidated gross margin of 48.8%, down 3.6 percentage points quarter over quarter and up 1.3 percentage points year-over-year
-2Q24 consolidated operating income of NT$24,956 million, down 22.4% from the previous quarter and up 69.2% year-over-year
-2Q24 consolidated net income of NT$25,955 million, down 18% quarter over quarter and up 62% year-over-year; EPS of NT$16.19
Consolidated Revenue
MediaTek Inc. today announced financial results of second quarter ended June 30, 2024. The second-quarter revenue was NT$127,271 million, down 4.6% sequentially and up 29.7% year-over-year. Revenue decreased quarter-over-quarter with sequential growth in Smart Edge Platforms and Power IC and sequential decline in Mobile Phone in this quarter. Revenue increased year-over-year with growth across the three revenue groups in this quarter.
Consolidated Gross Profit and Gross Margin
The second-quarter gross profit was NT$62,136 million, down 11.1% sequentially and up 33.2% year-over-year. Gross margin for the quarter was 48.8%, down 3.6 percentage points from the previous quarter and up 1.3 percentage points year-over-year. The quarter-over-quarter decrease in gross margin was mainly attributed to a higher gross margin in the previous quarter due to a one-time item. The year-over-year increase in gross margins was mainly due to better product mix.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$37,180 million (29.2% of revenue), compared with NT$37,721 million (28.3% of revenue) in the previous quarter and NT$31,896 million (32.5% of revenue) year-over-year. The slight quarter-over-quarter decrease was mainly due to lower selling expenses in this quarter. The year-over-year increase was mainly due to higher R&D investments in this quarter.
Operating expenses for the quarter included:
- R&D expenses of NT$30,833 million (24.2% of revenue), decreased from NT$31,147 million in the previous quarter and increased from NT$26,188 million in the year-ago quarter.
- Selling expenses of NT$3,401 million (2.7% of revenue), decreased from NT$3,754 million in the previous quarter and increased from NT$3,375 million in the year-ago quarter.
- Administration expenses of NT$2,947 million (2.3% of revenue), increased from NT$2,820 million in the previous quarter and NT$2,333 million in the year-ago quarter.
Consolidated Operating Income and Operating Margin Operating income for the quarter was NT$24,956 million, down 22.4% sequentially and up 69.2% year-over-year. Operating margin for the quarter was 19.6%, down from 24.1% in the previous quarter and up from 15% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$4,241 million, or 3.3% of revenue, mainly from interest income and dividend income. Income tax expense for the quarter was NT$3,242 million.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$25,955 million, down 18% sequentially and up 62% year-over-year. Net profit margin for the quarter was 20.4%, decreased from 23.7% in the previous quarter and increased from 16.3% in the year-ago quarter. EPS was NT$16.19, down from NT$19.85 in the prior quarter and up from NT$10.07 in the year-ago quarter. The quarter-over-quarter decrease in net income, net profit margin and EPS were mainly due to lower revenue and gross margin in this quarter. The year-over-year increase in net income, net profit margin and EPS were mainly due to higher revenue in this quarter.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT$208,674 million. This represents 30.6% of the company’s total assets. Cash and financial assets-current was NT$159,767 million and NT$192,428 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$45,945 million. The accounts receivable turnover was 36 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 37 days in the previous quarter and 43 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$53,578 million. The inventory turnover was 72 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 66 days in the previous quarter and lower than 115 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$49,940 million, compared with NT$25,204 million in the previous quarter and NT$46,732 million in the year-ago quarter.
Please refer to the link for financial tables
Earnings Webcast
MediaTek will hold a public webcast today (July 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, July 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: 1713531#
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.