HTC (2498) Q2 2024 earnings summary

Executive summary

• Quarterly revenue was NT$0.77 billion with a gross margin of 41.0% and an operating loss of NT$1.18 billion, reflecting continued profitability challenges.

• Net loss attributable to owners was NT$0.82 billion, EPS of -NT$0.98 for Q2 2024.

• Launched HTC U24 pro smartphone and expanded XR initiatives, winning multiple industry awards.

• Sustainability efforts included publishing a product carbon footprint report and advancing eco-friendly practices.

• Collaborated on VR content and events in Korea and Taiwan, including VTuber concerts and innovative experiences.

Financial highlights

• Q2 2024 revenue was NT$766.6 million, down from NT$1,143.9 million in Q2 2023.

• Gross profit for Q2 2024 was NT$314.7 million, gross margin at 41.0%.

• Operating loss for Q2 2024 was NT$1,181.6 million, with an operating margin of -154.1%.

• Net loss for Q2 2024 was NT$819 million, compared to NT$901 million in Q2 2023.

• EPS for Q2 2024 was -NT$0.98, improved from -NT$1.08 in Q2 2023.

Outlook and guidance

• Focus remains on expanding the XR ecosystem, leveraging VIVERSE and new product launches.

• Continued investment in sustainability and innovative product development.

• Management highlights risks from market demand, price fluctuations, competition, supply chain, and exchange rates.

• No specific quantitative guidance provided, but operational efficiency and innovation are priorities.