MediaTek’s 2Q19 GM and operating profit margin both hit new highs

MediaTek (2454-TW) held an online investors conference and announced its 2Q19 earnings report today on July 31st. Its GM and operating profit margin both hit 15-quarter highs. Its 2Q19 net profit was NTD6.5bn (+90.4% QoQ, -12.6% YoY) with EPS of NTD4.11. Its 1H19 net profit was NTD9.9bn with EPS of NTD6.28, staying flat YoY.

MediaTek's 2Q19 revenue was NTD61.567bn (+16.8% QoQ, +1.8% YoY). Its 2Q19 GM was 41.9% (+1.2% QoQ, +3.7% YoY), hitting 15-quarter highs. Its 2Q19 net operating profit was NTD6.143bn (+93.9% QoQ, +50.1% YoY). Its 2Q19 operating profit margin was 10% (+4% QoQ, +3.2% YoY). Its 2Q19 net profit was NTD6.5bn (+90.4% QoQ, -12.6% YoY) with EPS of NTD4.11.

Its 1H19 revenue was NTD114.289bn (+3.8% YoY). Its 1H19 GM was 41.4% (+3.1% YoY). Its 1H19 net operating profit was NTD9.31bn (+54.6% YoY). Its 1H19 operating profit margin was 8.1% (+2.6% YoY). Its 1H19 net profit was NTD9.919bn with EPS of NTD6.28, staying flat YoY.

In 3Q19, Rick Tsai (蔡力行), CEO of Mediatek, pointed out that the balanced development of the three major categories of products may lead its revenue/earnings to stay stable. Its 3Q19 revenue is estimated to reach NTD 65.3-70.2bn (+6-14% QoQ). And, its 3Q19 is estimated to be 40-43%. The upper end was 43%. Its 3Q19 revenue/earnings is expected to grow QoQ.