MediaTek (2454) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached NT$127.3 billion, up 29.7% year-over-year, at the midpoint of guidance, with gross margin at 48.8%, exceeding guidance due to improved product mix.

• Net income for Q2 was NT$26.0 billion, down 18% sequentially but up 62% year-over-year; EPS was NT$16.19, up from NT$10.07 year-over-year.

• H1 2024 revenue totaled NT$260.7 billion, up from NT$193.8 billion year-over-year, with net income at NT$57.6 billion and EPS at NT$36.04.

• Strategic focus remains on technology leadership, AI, and global expansion for mid- to long-term growth.

• Consolidated financial statements for H1 2024 were reviewed by independent accountants, with no material misstatements identified.

Financial highlights

• Q2 revenue: NT$127.3 billion, down 4.6% sequentially, up 29.7% year-over-year.

• Gross margin: 48.8%, down 3.6 ppt sequentially, up 1.3 ppt year-over-year; H1 gross margin was 51% year-over-year.

• Operating income: NT$25.0 billion in Q2, down 22.4% sequentially, up 69.2% year-over-year; H1 operating income was NT$57.1 billion.

• Net income: NT$26.0 billion in Q2, up 62% year-over-year; H1 net income was NT$57.6 billion.

• Cash and cash equivalents as of June 30, 2024 were NT$189.9 billion.

Outlook and guidance

• Q3 2024 revenue expected between NT$123.5–132.4 billion, down 3% to up 4% sequentially, up 12–20% year-over-year.

• Q3 gross margin forecast at 47% ±1.5 ppt; operating expense ratio at 30% ±2 ppt.

• Full-year 2024 revenue in USD expected to grow mid-teens percent; gross margin (excluding one-time items) to be 46–48%.

• The acquisition of IC PLUS Corp. in July 2024 is expected to enhance strategic cooperation and expand the product portfolio.

• New AI and ASIC projects expected to contribute revenue from H2 2025.