MediaTek (2454) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$153.3 billion, up 14.9–15% year-over-year and 11.1% sequentially, driven by AI, Wi-Fi 7, and robust demand.

• Net income was NT$29.5 billion, down 6.7–7% year-over-year but up 23.3% sequentially; EPS was NT$18.43, down from NT$19.85 YoY, up from NT$14.95 QoQ.

• Gross margin was 48–48.1%, down 0.4pp sequentially and 4.3pp year-over-year.

• Operating income was NT$30.1 billion, up 40.4% sequentially but down 6.6% year-over-year; operating margin was 19.6–20%.

• The company completed the acquisition of IC PLUS Corp., expanding its Ethernet IC portfolio.

Financial highlights

• Revenue: NT$153.3B (+11.1% QoQ, +14.9–15% YoY).

• Gross margin: 48–48.1% (-0.4pp QoQ, -4.3pp YoY).

• Operating income: NT$30.1B (+40.4% QoQ, -6.6% YoY); operating margin: 19.6–20%.

• Net income: NT$29.5B (+23.3% QoQ, -6.7–7% YoY); net margin: 19–19.3%.

• EPS: NT$18.43 (up from NT$14.95 QoQ, down from NT$19.85 YoY).

Outlook and guidance

• Q2 revenue expected at NT$147.2B–NT$159.4B, down 4% to up 4% sequentially, up 16–25% YoY.

• Gross margin forecasted at 47% ±1.5pp; operating expense ratio at 29% ±2pp.

• Management highlighted risks including competitive pressures, supply-demand shifts, regulatory changes, and global economic conditions.

• Cautious on H2 due to global trade/tariff uncertainties, but positive on mid- to long-term growth in AI and automotive.