TV and online retailer Momo.com Inc (富邦媒體) on Friday reported its highest quarterly profit since it was listed on the nation’s main board in December 2014, driven by increased market share in its online business-to-customer (B2C) segment and a recovery in TV home shopping.
Net profit increased 25.3 percent annually to NT$360 million (US$12.37 million) last quarter, with earnings per share of NT$2.6, the company said in a statement.
Quarterly revenue rose 30.4 percent to NT$9.94 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 39.4 percent to NT$470 million, the company added.
The favorable results for the October-to-December period came as the company further developed its B2C segment via warehouse construction, automated logistics and category expansion.
“The company launched the NT$4.1 billion Northern Automated Logistics Center [in Taoyuan] in October last year ... and is looking to build automated logistics centers in central and southern Taiwan to enhance operational efficiency and increase added value to our service,” Momo.com said in the statement.
Momo.com, a retail subsidiary of Taiwan Mobile Co (台灣大哥大), also operates a platform for catalog shopping.
Sales in the firm’s online shopping division last year rose 29.1 percent from a year earlier, continuing to be a major growth driver for the firm, despite fierce competition from rivals, Momo.com said.
The growth was better than the 22.67 percent increase estimated by Capital Securities Corp (群益證券).
Momo.com did not identify its rivals by name, but close peers like PChome Online Inc (網路家庭) and Shopee Taiwan Co Ltd (樂購蝦皮) worked hard to increase their market share in the past year through pricing wars and promotional activities.
Momo.com attributed the growth to partnerships with major brand vendors that expanded its product lineup and the establishment of an overseas procurement system.
Sales momentum was also strong due to contribution from the online sales of books, second-hand cars and insurance policies, it said.
For the entire last year, Momo.com reported that net profit hit a record NT$1.27 billion, with earnings per share increasing 7.3 percent from 2016 to NT$9.07.
Overall revenue expanded 18.4 percent to NT$33.24 billion, also a record for the company.
Gross margin was 10.81 percent and operating margin reached 4.27 percent, with EBITDA margin of 4.7 percent, the company said.
Shares in Momo.com rose 0.22 percent to NT$232.5 on Friday in Taipei trading, having risen 23.34 percent in the past 12 months, higher than the broader market’s 17.98 percent increase over the period, Taiwan Stock Exchange data showed.
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