2024 Q3 Financial Results
MediaTek Inc. Reports Third-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
-3Q24 consolidated revenue of NT$131,813 million, up 3.6% quarter-over-quarter and 19.7% year-over-year
-3Q24 consolidated gross margin of 48.8%, flat from the previous quarter and up 1.4 percentage points year-over-year
-3Q24 consolidated operating income of NT$23,864 million, down 4.4% from the previous quarter and up 33% year-over-year
-3Q24 consolidated net income of NT$25,590 million, down 1.4% quarter-over-quarter and up 37.8% year-over-year; EPS of NT$15.94
Consolidated Revenue
MediaTek Inc. today announced financial results of its third quarter ended September 30, 2024. The third-quarter revenue was NT$131,813 million, up 3.6% quarter-over-quarter and 19.7% year-over-year. In the third quarter, revenue from the three revenue groups, including Mobile Phone, Smart Edge Platforms and Power IC, grew both quarter-over-quarter and year-over-year.
Consolidated Gross Profit and Gross Margin
The third-quarter gross profit was NT$64,348 million, up 3.6% quarter-over-quarter and 23.3% year-over-year. Gross margin for the quarter was 48.8%, flat from the previous quarter and up 1.4 percentage points year-over-year. The year-over-year increase was mainly due to better product mix.
Consolidated Operating Expenses
Operating expenses for the quarter was NT$40,483 million (30.7% of revenue), compared with NT$37,180 million (29.2% of revenue) in the previous quarter and NT$34,248 million (31.1% of revenue) in the year-ago quarter. The quarter-over-quarter and year-over-year increases were mainly due to higher R&D investments in the quarter.
Operating expenses for the quarter included:
- R&D expenses of NT$33,261 million (25.2% of revenue), increased from NT$30,833 million in the previous quarter and NT$28,242 million in the year-ago quarter.
- Selling expenses of NT$4,237 million (3.2% of revenue), increased from NT$3,401 million in the previous quarter and NT$3,745 million in the year-ago quarter.
- Administration expenses of NT$2,985 million (2.3% of revenue), increased from NT$2,947 million in the previous quarter and NT$2,261 million in the year-ago quarter.
Consolidated Operating Income and Operating Margin
Operating income for the quarter was NT$23,864 million, down 4.4% sequentially and up 33% year-over-year. Operating margin for the quarter was 18.1%, down from 19.6% in the previous quarter and up from 16.3% in the year-ago quarter.
Consolidated Non-operating Income (loss) and Income Tax
Non-operating income for the quarter was NT$4,577 million, or 3.5% of revenue, mainly from interest income and dividend income. Income tax expense for the quarter was NT$2,851 million.
Consolidated Net Income, Net Profit Margin and EPS
Net income for the quarter was NT$25,590 million, down 1.4% sequentially and up 37.8% year-over-year. Net profit margin for the quarter was 19.4%, down from 20.4% in the previous quarter and up from 16.9% in the year-ago quarter. EPS was NT$15.94, down from NT$16.19 in the previous quarter and up from NT$11.64 in the year-ago quarter. The quarter-over-quarter decreases in net income, net profit margin and EPS were mainly due to higher operating expenses in the quarter. The year-over-year increases in net income, net profit margin and EPS were mainly due to higher revenue and gross margin in the quarter.
Consolidated Cash and Financial Assets-Current
Cash and financial assets-current at the end of the quarter was NT$198,020 million. This represents 29.3% of the company’s total assets. Cash and financial assets-current was NT$208,674 million and NT$119,324 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$47,219 million. The accounts receivable turnover was 32 days based on quarterly average net receivables divided by annualized net revenue. The turnover was lower than 36 days in the previous quarter and 44 days in the year-ago quarter.
Consolidated Inventory
Net inventory at the end of the quarter was NT$55,635 million. The inventory turnover was 74 days based on quarterly average inventory divided by annualized cost of goods sold. The turnover was higher than 72 days in the previous quarter and lower than 90 days in the year-ago quarter.
Consolidated Cash Flow from Operations
Net cash provided by operating activities during the quarter was NT$36,225 million, compared with NT$49,940 million in the previous quarter and NT$14,966 million in the year-ago quarter.
Please refer to the link for financial tables.
Earnings Webcast
MediaTek will hold a public webcast today (October 30). 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, October 30, 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: 1718030#
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.