As for what Tencent will do afterwards, how to solve the problem of Huya is actually very transparent, because Tencent is now a major shareholder of Douyu.
Editor’s note: This article comes from WeChat public account “Game Watch” (ID: gamewower) , author Gamewower.
On the morning of March 17, Huya released its 2019 Q4 financial report and annual financial report.
According to the financial report data, in Q4 2019, Huya ’s live broadcast revenue was 2.467 billion yuan, an increase of 64.0% year-on-year; net profit was 159.7 million yuan, an increase of 60.3% year-on-year.
In the whole of 2019, Huya’s revenue was 8.375 billion yuan, a year-on-year increase of 79.6%, and net profit was 750 million yuan, a year-on-year increase of 62.7%.
Huya ’s performance in 2019 is very outstanding, both in terms of revenue growth and profit growth. However, it must be pointed out that Huya’s revenue still has some issues that deserve attention.
Revenue of revenue growth has slowed, Ad business is still far from being a pillar
According to Huya ’s financial report, although starting from Q2 2019, Huya ’s advertising revenue has maintained a 90% year-on-year growth for three consecutive quarters, but Huya ’s main revenue is still derived from the live broadcast business.
Data shows that Huya Q4’s live broadcast revenue was 2.461 billion yuan, and the annual live broadcast revenue was 7.9762 billion yuan, which accounted for 95% of the overall revenue compared to the beginning of the listing.
This aspect reflects that its advertising business is still relatively small. Although the rapid growth rate is unlikely to cause large fluctuations in Huya’s revenue structure, on the other hand, it also reflects the growth of its live broadcast business in 2019. More good.
However, it is worth noting that Huya ’s revenue growth has been declining year-on-year, and the same is true for the quarter-on-quarter growth. In Q3 2019, its growth rate was 12.17%, and in Q4 it was 8.8%.
From the data, we can see that if Huya cannot find a new direction in revenue and still relies on the current model, then Huya’s revenue will encounter a bottleneck.
According to the guidelines published by Huya, Huya currently estimates that its total revenue in the first quarter of 2020 will be between RMB 2.36 billion and RMB 2.4 billion, which is basically the same as the data of Q4 2019.
Entertainment and games may be five or five
In addition to revenue, another data is the size of paid users. In Q4 2019, Huya ’s live broadcast total number of paid users was 5.1 million, an increase of 5.9% year-on-year from 4.8 million in 2018.