MediaTek, a leading IC design manufacturer, reported substantial growth in its first-quarter 2024 results, surpassing expectations with a revenue of NT$133.458 billion, marking a 39.5% increase from the same period in 2023. The company’s performance is primarily attributed to robust replenishment demand from its mobile phone, broadband, and TV segments. The gross profit margin also rose significantly by 4.1 percentage points quarter-over-quarter to 52.4%, benefiting from one-time favorable impacts.
Net profit soared by 87.4% compared to Q1 2023, reaching 31.655 billion yuan, with earnings per share (EPS) climbing to 19.85 yuan. This performance ranks as the third highest in the company’s history for a single quarter, reflecting strong operational execution and improved profitability metrics.
The company’s improved inventory management was evident, with inventory turnover days steady at 66, significantly reduced from 128 days in Q1 2023, suggesting a return to healthier inventory levels. Looking ahead to Q2 2024, MediaTek projects a strong growth in revenue from 2023, though it anticipates a sequential decline of up to 9% from Q1 2024. The company expects continued growth in TV and computing device revenues and a recovery in power management chip demand.
This optimistic outlook is supported by an expected gross profit margin of approximately 47% and stable operating expenses, positioning MediaTek favorably in a competitive semiconductor landscape.
