Momo.com aims for an enhanced Q2 performance following a 1.76% dip in first-quarter revenues.
Leading Taiwanese online and TV retailer Momo.com, Inc. sees potential for growth in the second half of the year as it awaits the maturation of new business ventures, according to Daniel Tsai, the company's chairman.
Speaking at the company's annual general meeting in Taipei, Tsai stated that while the company's performance last year was acceptable, the pressure felt in the first half of 2025 remains significant.
Founded as a subsidiary of Taiwan Mobile Co, Momo.com operates an extensive network of online shopping, TV home shopping, and catalog shopping. The company reported record revenue of NT$112.56 billion (US$3.76 billion) in 2024, marking a modest 3% increase from the previous year.
However, revenue in the first quarter declined by 1.76% year-on-year and 21.1% quarter-on-quarter to NT$26.41 billion. Sales in business-to-customer operations dropped by 1% year-on-year at NT$2.55 billion, marking the first annual decline in the company's history. This dip in revenue was attributed to weakening consumer spending patterns during the post-COVID-19 pandemic era, as well as stiff competition from local and international e-commerce peers.
Increased operating expenses caused an operating margin of 2.98% in the first quarter, representing a fall of 1.18 percentage points from the prior year. Net profit for the quarter was NT$859.59 million, down 5.5% annually, with earnings per share at NT$3.41, according to company data.
Despite facing aggressive competition from foreign e-commerce operators like South Korea's Coupang Corp, Momo.com has entered into a strategic partnership with Meta Platforms Inc to merge e-commerce and social media platforms and develop a retail media network for advertising.
The company introduced a new business-to-business-to-consumer model through its "mo-shop+" platform, enabling third-party sellers to reach consumers via the Momo platform. Momo.com also operates a live broadcast business and opened a logistics center in Tainan, with plans to construct another in central Taiwan to expand its footprint.
New businesses are expected to boost Momo.com's gross merchandise value and operating margin in the long term, but they will require considerable initial investment and extensive internal integration efforts before contributing significantly in the short term.
Trade and tariff policies of the United States create uncertainty in the global economic landscape, according to Tsai, who noted that these factors make consumers more cautious about spending, which has indirectly affected the e-commerce industry.
Significant shares of the company's shareholders approved the distribution of a dividend of NT$13.3 per share, consisting of a cash dividend of NT$12.8 and NT$0.5 from capital surplus, based on earnings per share of NT$13.69 in 2024.
- The strategic partnership between Momo.com and Meta Platforms Inc, aimed at merging e-commerce and social media platforms, indicates the company's interest in integrating technology with finance and business to foster growth.
- Amid the projected growth in the second half of the year due to new business ventures, Momo.com's focus on expanding its logistics network and live broadcast business reflects a willingness to invest in technology to bolster its operations.
