The domestic live broadcast giant Huya released the latest Q3 quarterly report, and its performance and guidance exceeded expectations.
Editor’s note: This article is from Huasheng Securities, author Lin Hai.
Huya (HUYA) US stocks released their third-quarter earnings for the 2019 fiscal year ending September 30 after the market. The stock price rose nearly 4% after the market exceeded expectations.
Source: Huasheng Securities
Overview of the quarterly report: high income growth, earnings exceeded expectations
Revenue: Q3 total revenue was RMB 2,265.1 billion (US$366.9 billion), an increase of 77.4% year-on-year, exceeding Wall Street analysts’ expectations of US$350.3 million.
Profit: Net profit was RMB 123.2 million (US$ 17.2 million), an increase of 117.1% year-on-year. Under non-GAAP, the operating profit excluding equity incentive expenses was RMB 147 billion (US$20.6 million), an increase of 139.0% compared with RMB 61.5 million for the same period in 2018; the net profit attributable was RMB 2.064. 100 million yuan ($28.9 million), an increase of 70.5% compared with RMB 121 million in the same period in 2018. Since the fourth quarter of 2017, the company has achieved profitability for eight consecutive quarters.
Platform users: The average domestic MAU (monthly live users) and mobile average MAU (mobile monthly users) were 146.19 billion and 63.8 million, respectively, up 47.6% and 29.1% respectively. The number of paid users in the quarter reached 5.3 million, an increase of 28.5% over the same period last year of 4.2 million.
Segment: Live & Advertising High Growth
The company’s revenue is divided into two parts, the most important one is live broadcast, followed by the small proportion of advertising and other revenues. Both revenues have a higher growth rate in the quarter, and the live broadcast revenue increased from 1.217 billion in the previous year. To 2.156 billion yuan, a substantial increase of 77% year-on-year, advertising and other business revenue increased by 81.3% year-on-year to 109 million yuan.
