MediaTek (2454) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NT$131.8 billion, up 3.6% sequentially and 19.7% year-over-year, with all revenue groups growing.

• Net income was NT$25.6 billion, down 1.4% sequentially but up 37.8% year-over-year; EPS was NT$15.94.

• Flagship SoC Dimensity 9400 launched, driving strong momentum and adoption among major OEMs.

• Consolidated financial statements reviewed by independent accountants, with no material misstatements identified for the nine months ended September 30, 2024 and 2023.

• The company operates as a leading designer and manufacturer of multimedia and mobile phone integrated circuits, with a global presence and a broad portfolio of subsidiaries.

Financial highlights

• Operating income was NT$23.9 billion, down 4.4% sequentially but up 33% year-over-year; operating margin was 18.1%.

• Gross margin was 48.8%, flat sequentially and up 1.4 percentage points year-over-year, exceeding guidance due to favorable product mix.

• Net profit margin was 19.4%, down 1 percentage point sequentially, up 2.5 percentage points year-over-year.

• Non-T-IFRS net income was NT$25.9 billion; non-T-IFRS EPS was NT$16.15.

• R&D expenses accounted for 25.2% of revenue in Q3 2024.

Outlook and guidance

• Q4 2024 revenue expected between NT$126.5 billion and NT$134.5 billion, a sequential change of -4% to +2% and year-over-year change of -2% to +4%.

• Gross margin forecasted at 47% ±1.5 percentage points; operating expense ratio at 32% ±2 percentage points.

• Annual revenue growth target of 18% in USD expected to be exceeded; gross margin target range of 46%-48% reaffirmed.

• The company expects continued revenue growth, with strong demand for its integrated circuit products and ongoing expansion in global markets.

• No significant subsequent events or major disasters were reported after the reporting period.