Huya Inc. Earnings Call Highlights Robust Growth

Huya Inc ((HUYA)) has held its Q3 earnings call. Read on for the main highlights of the call.

Huya Inc. Reports Strong Revenue Growth Amidst Challenges

The recent earnings call for Huya Inc. presented a positive outlook, highlighting substantial growth in revenues and successful expansion in various sectors, particularly in game-related services and international markets. Despite facing challenges such as decreased interest income and net income, the overall performance and growth prospects of the company remain strong.

Record Revenue Growth

Huya Inc. achieved a milestone in the third quarter with total net revenues reaching approximately RMB 1.7 billion. This marks the highest level in the past nine quarters, showcasing a year-over-year growth of around 10%. This achievement underscores the company’s robust financial health and its ability to capitalize on market opportunities.

Significant Growth in Game-related Services

The company reported a remarkable 30% year-over-year increase in revenue from game-related services, advertising, and others, amounting to RMB 532 million. This sector now accounts for over 31.5% of Huya’s total net revenues, reflecting the company’s successful strategy in diversifying its revenue streams.

In-game Item Sales Surge

In-game item sales revenue experienced an impressive surge, growing by more than 200% year-over-year in the third quarter. This growth was driven by strong partnerships with flagship titles, highlighting the effectiveness of Huya’s collaborations within the gaming industry.

Successful Game Publishing Strategy

Huya’s foray into game publishing has shown promising results, with the game Goose Goose Duck Mobile surpassing 10 million preregistrations. This marks a significant step forward in the company’s expansion into new business areas.

First Positive Growth in Live Streaming Revenue Since 2021

For the first time since Q3 2021, Huya reported a 3% year-over-year increase in live streaming revenues. This positive growth indicates a recovery in this segment and reflects the company’s efforts to enhance its live streaming offerings.

International Expansion Success

Huya’s international expansion efforts have been fruitful, with a steady growth in the user base on overseas platforms. Enhanced engagement and diversified monetization strategies have contributed to this success, positioning Huya well in the global market.

Decreased Interest Income

Interest income for Q3 was RMB 35 million, a decrease from RMB 97 million in the same period last year. This reduction is primarily attributed to a lower time deposit balance following special cash dividends paid, highlighting a challenge in maintaining previous income levels.

Operating Loss Despite Improvements

Despite significant improvements in various areas, Huya reported an operating loss of RMB 14 million for Q3. This indicates ongoing challenges in achieving profitability, despite the overall positive growth trends.

Decline in Net Income

Net income attributable to Huya Inc. was RMB 10 million for Q3, down from RMB 24 million in the same period last year. This decline reflects the financial pressures the company faces, even as it pursues growth opportunities.

Forward-looking Guidance

Looking ahead, Huya remains optimistic about maintaining strong growth momentum across its business segments. The company highlighted key growth drivers such as in-game item sales and strategic expansion into game publishing, with the upcoming launch of Goose Goose Duck Mobile. Additionally, Huya plans to enhance its platform capabilities and continue its international expansion efforts, aiming for long-term development and success.

In conclusion, Huya Inc.’s recent earnings call painted a picture of a company on the rise, with strong revenue growth and successful expansion strategies. While challenges remain, particularly in terms of interest and net income, the company’s forward-looking guidance suggests a focus on sustaining growth and enhancing its market position.