Tiger tooth third quarter revenue 1 billion 276 million 600 thousand yuan year-on-year losses


Tiger tooth third quarter revenue 1 billion 276 million 600 thousand yuan year-on-year losses

Sina Science and Technology News Beijing time, November 13 morning news, NYSE: HUYA today released the third quarter of fiscal year 2018 as of September 30. According to the report, Huya's total net revenue in the third quarter was 1.276.6 billion yuan ($185.9 million), up 118.8% from 583.5 billion yuan in the same period last year, and its net profit was 56.8 million yuan ($8.3 million), compared with a net loss of 29.3 million yuan in the same period last year.

Financial and Operational Highlights for the third quarter of 2018

Total revenue in the third quarter of 2018 was RMB 1.276 billion yuan ($185.9 billion), up 118.8% from RMB 583.5 billion yuan in the same period of 2017.

* The net profit attributable to Huya in the third quarter of 2018 was RMB 56.8 million yuan ($8.3 million), while the net loss attributable to Huya in the same period of 2017 was RMB 29.3 million yuan.

* In the third quarter of 2018, the net profit attributable to Huya under non-US GAAP was RMB 121 million yuan ($17.6 million), while in the same period of 2017, the net loss attributable to Huya under non-US GAAP was RMB 25.4 million yuan.

* The average mobile MAU in the third quarter of 2018 was 49.4 million, up 28.2% from 38.6 million in the third quarter of 2017.

* The average number of live users per month in the third quarter of 2018 was 99 million, up 14.6% from 86.3 million in the third quarter of 2017.

* The number of paid users in the third quarter of 2018 was 4.2 million, up 37.8% from 3 million in the third quarter of 2017.

Mr. Dong Rongjie, chief executive of Huya, commented: "We are pleased to have achieved strong financial and operational results again in this quarter, with revenue increasing 118.8% year-on-year and earning a steady profit. Our monthly number of live subscribers increased by 14.6% over the same period of last year, especially thanks to our mobile strategy. The number of live subscribers on mobile end increased by 28.2% over the same period of last year. In addition, the number of paying users reached 4.2 million, an increase of 37.8% over the same period last year, which reflects the user's recognition of the value of our content.

"Our sustained strategic investment in the field of electronic competition has also achieved encouraging results. We have broadcast more mainstream electronic competitions and self-made competitions live. At the same time, the popularity of world class competition has brought the number of innovative audiences. In order to increase the influence of the competitive industry, we not only continue to invest in content ecology, but also begin to participate in the operation of competitive teams and hosting more events. With the growing interest in E-sports in China and around the world, we have seen great market potential in this field. To further optimize content coverage and rapidly expand our user base, we will continue to invest in this area. Dong Rongjie concluded.

Mr. Sha Dachuan, Chief Financial Officer of Huya, commented: "We have achieved strong revenue growth and sound operating performance this quarter, benefiting from healthy endogenous growth in user size. We attach great importance to the service of the anchor to its audience community, and continue to enhance the participation of users, while the good growth trend of paying users further validates the opportunities we see. We will continue to invest in e-commerce, new products and technologies to promote user growth, while providing more value-added services, thereby strengthening our partnership with content creators of our platform.

Financial performance in the third quarter of 2018

The total revenue in the third quarter of 2018 was RMB 1,276.6 billion yuan ($185.9 billion), an increase of 118.8% compared with RMB 583.5 billion yuan in the same period of 2017.

In the third quarter of 2018, the revenue of live broadcasting was RMB 1.216 billion yuan ($177.1 million), an increase of 120.2% compared with RMB 552.4 billion yuan in the same period of 2017. The main reason for the increase is the increase in expenditure per payer and the increase in the number of payers on Tiger's Tooth Platform. The increase in the number of paying subscribers is mainly due to the promotion of the company's mobile strategy, the diversification of content products on Huya platform and the continuous efforts to convert active users into paying subscribers.

Advertising and other revenue in the third quarter of 2018 was RMB 60.1 million yuan ($8.8 million), up 92.9% from RMB 31.2 million yuan in the same period of 2017. This growth reflects the company's ongoing efforts to expand its advertising business and to achieve cash flow and live content through cooperation with its business partners.

The cost of revenue in the third quarter of 2018 was RMB 1,082.9 billion yuan ($157.7 million), an increase of 112.2% compared with RMB 510.3 billion in the third quarter of 2017, mainly due to the increase of income share and content cost, bandwidth cost and salary and welfare.

In the third quarter of 2018, revenue share and content cost were 844 billion yuan ($122.9 billion), up 125.0% from 375.1 billion yuan in the same period of 2017. This is mainly due to the increase of sales revenue share of virtual goods on the platform, which is also consistent with the growth trend of the company's live revenue. As a result of Huya's continuous investment in both domestic and overseas markets for creators of competitive content and platform content.

The cost of bandwidth in the third quarter of 2018 was 174 billion yuan ($25.3 million), up 66.8% compared with 104.3 billion yuan in the same period of 2017. This was mainly due to the increase of users on the platform and the improvement of video quality, which led to the increase of bandwidth usage, while the use of bandwidth was enhanced through the adoption of new technologies in content distribution. Efficiency is partly offset.

Gross profit in the third quarter of 2018 was 193.7 million yuan ($28.2 million), up 164.5% from 73.2 million yuan in the same period in 2017. Gross profit margin increased from 12.6% in the same period in 2017 to 15.2% in the third quarter of 2018, mainly due to the company's enhanced liquidity, economies of scale effect and the continuous contribution of technological innovation.

The R&D expenditure in the third quarter of 2018 was 74.6 million yuan ($10.9 million), up 52.6% from 48.9 million yuan in the third quarter of 2017, mainly due to the increased salaries and benefits of R&D personnel and the impact of equity incentive fees newly awarded in this quarter.

Sales and marketing expenses in the third quarter of 2018 were 61.7 million yuan ($9 million), an increase of 191.6% compared with 21.2 million yuan in the third quarter of 2017, mainly due to the increase in marketing and marketing costs caused by the promotion of brand awareness, the promotion of electricity competitions and summer cooperation with various marketing channels.

The administrative expenses in the third quarter of 2018 were 71.2 million yuan ($10.4 million), an increase of 90.7% compared with 37.3 million yuan in the third quarter of 2017, mainly due to the impact of equity incentive fees newly awarded in the first quarter of 2018, and the increase of salaries and benefits of managers.

In the third quarter of 2018, the operating loss was RMB 2.7 million yuan ($400,000), while in the same period of 2017, the operating loss was RMB 34.1 million yuan.

In the third quarter of 2018, the operating profit under non-US GAAP (excluding equity incentive fees) was 61.5 million yuan ($9 million), while in the same period of 2017, the operating loss under non-US GAAP was 30.1 million yuan.

The net profit attributed to Huya in the third quarter of 2018 was RMB 56.8 million yuan ($8.3 million), while the net loss attributed to Huya in the same period of 2017 was RMB 29.3 million yuan.

In the third quarter of 2018, the net profit attributable to Huya under non-US GAAP (excluding equity incentive fees) was RMB 121 million ($17.6 million), while in the same period of 2017, the net loss attributable to Huya under non-US GAAP was RMB 25.4 million.

In the third quarter of 2018, the net income per share of American Depository Shares ("ADS") was 0.26 yuan ($0.04), while in the same period of 2017, the net loss per share of ADS was 0.39 yuan. ADS per share represents a class a common stock.

In the third quarter of 2018, net income per share of ADS diluted under non-US GAAP was 0.55 yuan ($0.08), while net loss per share of ADS diluted under non-US GAAP was 0.35 yuan in the same period of 2017.

As of September 30, 2018, the company had cash, cash equivalents, short-term deposits and short-term investments totaling RMB 5.873.6 billion yuan ($855.2 million). Operational cash inflows were RMB 237.7 billion yuan (US$34.6 million) and RMB 87.2 million yuan in the same period in 2017. (Tang Feng)


Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens