Sat, Jul 23, 2016 - Page 12 News List

Momo.com reports 10.46% growth for second quarter

By Lisa Wang  /  Staff reporter

Television and online retailer Momo.com Inc (富邦媒體) yesterday reported 10.46 percent annual growth in net profit for the second quarter, thanks to strong holiday sales, such as Mother’s Day, and high demand for summer appliances, such as cooling fans.

Last quarter’s net profit of NT$297 million (US$9.26 million) fell just short of Yuanta Securities Investment Consulting Co’s (元大投顧) estimate of NT$309 million.

Momo.com, a wholly owned subsidiary of the nation’s No. 2 telecom operator Taiwan Mobile Co (台灣大哥大), competes with PChome Online Inc (網路家庭) in the nation’s e-commerce market.

During the first half of this year, net profits rose 17.86 percent to NT$640 million from NT$543 million in the same period of last year, according to a statement posted on the company’s Web site.

Operating margin climbed to a record high at 5.03 percent in the first half, compared with 4.54 percent a year ago.

Revenue expanded about 10 percent to NT$13.7 billion in the first six months, from NT$12.46 billion last year.

The company said a strong performance in its Chinese subsidiary helped boost its revenue in the first half.

Looking ahead, Momo.com said it expects growth momentum to extend into the second half, driven by holiday sales during Father’s Day and the Ghost Festival, as well as the end-of-year shopping season.

The company said it might also benefit from its overseas subsidiaries, including TVD mom — a joint venture with Thailand’s TVD Shopping Co Ltd, which ranks as the second-biggest online shopping store in Thailand.

The company also said that a new logistics center in Taoyuan, which is currently under construction, would start test operations in the second quarter of next year, which should help improve its storage management and enhance efficiency in goods deliveries.

Shares of Momo.com rose 0.24 percent to NT$213 yesterday on the Taiwan Stock Exchange, outperforming the TAIEX, which lost 0.48 percent.

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