Net income attributable to HUYA Inc. was RMB524.4 million (US$81.4 million) for the third quarter of 2021, compared with RMB253.0 million for the same period of 2020.

Non-GAAP net income attributable to HUYA Inc. was RMB180.0 million (US$27.9 million) for the third quarter of 2021, compared with RMB361.2 million for the same period of 2020.

The average mobile MAUs of Huya Live in Q3 2021 increased by 14.7% to 85.1 million, from 74.2 million in the same period of 2020. The total number of paying users of Huya Live in the third quarter of 2021 reached 6.0 million, compared with 6.0 million in the same period of 2020.

China eSports market overview and forecast

The net income attributable to HUYA Inc. was RMB171.2 million (US$24.2 million) for Q1 2020, representing an increase of 169.8% YoY from RMB63.5 million.

Non-GAAP net income attributable to Huya was RMB263.4 million (US$37.2 million) for Q1 2020, representing an increase of 100.7% YoY from RMB131.3 million.

The average mobile MAUs of Huya Live in the first quarter of 2020 reached 74.7 million, an increase of 38.6% YoY from 53.9 million. The average MAUs of Huya Live reached 151.3 million, an increase of 22.2% YoY.

The total number of paying users of Huya Live in Q1 2020 reached 6.1 million, an increase of 13.0% YoY from 5.4 million.

Since Tencent became its largest shareholder in April 2020, they have been strengthening their collaboration, especially in live streaming content and capabilities.

Huya Financial Results in Q1 2020

Total net revenues for the first quarter of 2020 increased by 47.8% to RMB2,411.9 million (US$340.6 million), from RMB1,631.5 million for the same period of 2019.

Live streaming revenues increased by 46.5% to RMB2,274.5 million (US$321.2 million) for the first quarter of 2020, from RMB1,552.5 million for the same period of 2019, primarily due to the increase in average spending per paying user and the number of paying users on Huya Live.

The increase in average spending per paying user was primarily driven by the enhancement of content attractiveness and the improvement in user experience. The increase in the number of paying users was primarily driven by the Company’s user growth.

Advertising and other revenues increased by 74.0% to RMB137.5 million (US$19.4 million) for the first quarter of 2020, from RMB79.0 million for the same period of 2019, primarily driven by the rising demand from an increasing number of advertisers, the advertising distribution platform launched by the Company in the third quarter of 2019 and strengthened recognition of Huya’s brand name in China’s online advertising market.

Cost of revenues increased by 42.6% to RMB1,937.1 million (US$273.6 million) for the first quarter of 2020 from RMB1,358.1 million for the same period of 2019, primarily attributable to the increase in revenue-sharing fees and content costs, bandwidth costs and personnel-related costs.

Revenue sharing fees and content costs increased by 37.7% to RMB1,532.6 million (US$216.4 million) for the first quarter of 2020 from RMB1,113.1 million for the same period of 2019, primarily due to the increase in virtual item revenue sharing fees in relation to higher live streaming revenues, and continued spending in content creators and e-sports content in both domestic and overseas markets.

The year-over-year increase was partially offset by benefits from economies of scale.

Bandwidth costs increased by 42.1% to RMB240.1 million (US$33.9 million) for the first quarter of 2020 from RMB169.0 million for the same period of 2019, primarily due to an increase in bandwidth usage as a result of the Company’s larger user base and enhanced live streaming video quality, partially offset by improved efficiency in bandwidth utilization through continued technology enhancement efforts.

Gross profit increased by 73.7% to RMB474.8 million (US$67.1 million) for the first quarter of 2020 from RMB273.4 million for the same period of 2019. The gross margin increased to 19.7% for the first quarter of 2020 from 16.8% for the same period of 2019.

Research and development expenses increased by 73.3% to RMB156.1 million (US$22.0million) for the first quarter of 2020 from RMB90.0 million for the same period of 2019, mainly attributable to increased personnel-related expenses.

Sales and marketing expenses increased by 36.3% to RMB106.5 million (US$15.0 million) for the first quarter of 2020 from RMB78.2 million for the same period of 2019. The increase was primarily attributable to the increased marketing expenses associated with the promotions for the Company’s products and brand name in both domestic and overseas markets, as well as increased personnel-related expenses.

General and administrative expenses increased by 5.1% to RMB90.2 million (US$12.7 million) for the first quarter of 2020 from RMB85.8 million for the same period of 2019, mainly due to the increased personnel-related expenses.

Operating income increased by 372.5% to RMB133.3 million (US$18.8 million) for the first quarter of 2020 from RMB28.2 million for the same period of 2019. The operating margin increased to 5.5% for the first quarter of 2020 from 1.7% for the same period of 2019.

Non-GAAP operating income, which excludes share-based compensation expenses, increased by 136.5% to RMB227.2 million (US$32.1 million) for the first quarter of 2020 from RMB96.0 million for the same period of 2019. Non-GAAP operating margin increased to 9.4% for the first quarter of 2020 from 5.9% for the same period of 2019.

Income tax expenses increased by 98.0% to RMB37.6 million (US$5.3 million) for the first quarter of 2020 from RMB19.0 million for the same period of 2019.

Net income attributable to HUYA Inc. for the first quarter of 2020 increased by 169.8% to RMB171.2 million (US$24.2 million), from RMB63.5 million for the same period of 2019.

Non-GAAP net income attributable to HUYA Inc. for the first quarter of 2020, which excludes share-based compensation expenses, gain on fair value change of investments, and income tax effects on non-GAAP adjustments, increased by 100.7% to RMB263.4 million (US$37.2 million), from RMB131.3 million for the same period of 2019.

Diluted net income per American depositary share (“ADS”) was RMB0.73 (US$0.10) for the first quarter of 2020, compared with RMB0.29 for the same period of 2019. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP diluted net income per ADS was RMB1.12 (US$0.16) for the first quarter of 2020, compared with RMB0.59 for the same period of 2019.

As of March 31, 2020, the Company had cash and cash equivalents, short-term deposits and short-term investments of RMB10,316.7 million (US$1,457.0 million), compared with RMB6,329.1 million as of March 31, 2019.

Net cash provided by operating activities decreased to RMB135.1 million (US$19.1 million) for the first quarter of 2020, from RMB501.7 million for the same period of 2019. The decrease was primarily attributable to the increase of annual cash bonuses paid to its employees, the increase of fees paid to broadcasters and the increase of licensing fees paid for broadcasting e-sports tournaments.

For the second quarter of 2020, Huya currently expects total net revenues to be in the range of RMB2,600 million to RMB2,630 million, representing a year-over-year growth of between 29.3% and 30.8%.

The average mobile MAUs of Likee (formerly known as Like) increased by 208.3% to 115.3 million in Q4 2019 from 37.4 million in Q4 2018.

The average mobile MAUs of JOYY’s global live streaming services increased by 21.5% to 158.9 million from 130.8 million in Q4 2018, 102.8 million of which were from China, including 41.2 million from YY, which increased by 3.8% year over year, and 61.6 million from Huya, which increased by 21.5% year over year.

56.1 million live streaming MAUs were from outside of China, including 23.1 million from BIGO LIVE, which increased by 18.6% year over year, and 33.0 million from HAGO (casual-game-oriented social media platform), which increased by 57.9% year over year.

Average mobile MAUs of imo was 211.0 million.

The total number of paying users of YY increased by 9.8% to 4.5 million from 4.1 million in Q4 2018. Total number of paying users of Huya increased by 5.9% to 5.1 million from 4.8 million in Q4 2018. See Huya’s competitor Douyu here.

YY’s financial highlights in Q4 2019:

• YY’s net revenues increased by 64.2% to RMB7,618.2 million (US$1,094.3 million) from RMB4,640.9 million in Q4 2018.
• Net income attributable to controlling interest of JOYY Inc.1 was RMB172.8 million (US$24.8 million), compared to RMB694.7 million in Q4 2018.
• Non-GAAP net income attributable to controlling interest of JOYY was RMB600.8 million (US$86.3 million), compared to RMB846.9 million in Q4 2018, primarily due to the impact of the consolidation of Bigo Inc (“Bigo”)

YY’s net revenues increased by 62.2% to RMB25,576.2 million (US$3,673.8 million) from RMB15,763.6 million in 2018. Net income attributable to controlling interest of JOYY Inc. was RMB3,445.2 million (US$494.9 million), compared to RMB2,209.0 million in 2018.

Non-GAAP net income attributable to controlling interest of JOYY was RMB2,252.6 million (US$323.6 million), compared to RMB3,274.1 million in 2018.

9 Brands’ great results from WeChat Mini Program live streaming campaigns

Huya, a leading game live streaming platform in China, delivered non-GAAP net income for five consecutive quarters, reaching a record high of US$67.0 million for the fiscal year of 2018. The average mobile MAUs and MAUs reached 50.7 million and 116.6 million, respectively. Total paying users increased by 73.1% year-on-year to 4.8 million.

In the fourth quarter of 2018, the average mobile MAUs of Huya reached 50.7 million, an increase of 30.7% year-on-year. Average MAUs totaled 116.6 million, an increase of 34.5% year-on-year. The total number of paying users increased by 73.1% year-on-year to 4.8 million.

Related: China’s video cloud market to grow by 37.5% in 2019

Huya generated more than 1.6 billion viewership from over 400 e-sports events broadcasted in 2018. Furthermore, Huya has acquired more than 10 million active monthly overseas users in less than a year.

As the first domestic game live streaming platform being published, Huya’s total net revenues increased by 113.4% year-on-year to 4,663.4 million yuan (US$678.3 million) in 2018. Net revenues reached 1,504.9 million yuan (US$218.9 million) for the fourth quarter, a 103.1% increase compared with the prior year period.

For the fourth quarter of 2018, Non-GAAP net income attributable to Huya grew by 486.8% year-on-year to 166.9 million (US$24.3 million) yuan. The non-GAAP net margin went up by 160 basis points quarter-over-quarter to 11.1%.

The high rise of 34.5% in average MAUs was mainly driven by the improved desktop viewing experience, the launch of a series of eSports competitions in the fourth quarter, and its major competitor Douyu being removed from app stores.

On the other hand, the rising number of paying users also played a part in it. Noteworthy, mobile MAUs exceeded 50 million with a 30-day retention rate of over 70%. With a higher monetization capacity and conversion rate, this part contributed over 80% of live streaming revenues, which increased by 108.15 year-on-year to 1,441.8 million (US$209.7 million) in the fourth quarter.

The technology innovation on bandwidth utilization promoted the booming gross profit. In the fourth quarter of 2018, bandwidth costs increased by 42.1% year-on-year to 161.6 million yuan (US$23.5 million), whose presence in total cost of revenues has been declining, partially offset by improved efficiency in bandwidth utilization as a result of the deployment of new technologies in content distribution.

Apart from that, profited from a better user experience, the gross profit surged by 120.7% year-on-year to 238.6 million yuan (US$34.7 million).

Huya generated more than 1.6 billion viewership from over 400 e-sports events including LOL S8, and KPL Autumn broadcasted in 2018. Also, Huya had held nearly 20 competitions by itself, which attracted over 58 million viewership.

Holding competitions by themselves is a major part of their differentiation strategy, which not only brings traffic and users but also helps cultivate premium game hosts, according to Mr. Rongjie Dong, Chief Executive Officer of Huya. In 2019, Huya will put more to premium e-sports content.

Huya established a strategic partnership with Tencent in June 2018 to march into the South Asia market. It has acquired more than 10 million overseas active users as of December 2018. Check out top 20 Chinese video mobile apps in the overseas market.

How China’s short video app Kuaishou grew its DAU by 40M in 5 months

iQiyi ranks on top in China’s mobile video category with 245.61 million active users in Feb 2017, followed by Tencent Video, Youku, Letv, and Mango TV.

Sohu TV, Baofeng, PPTV, Tudou, and Migu Video apps are also in the top 10 video apps by MAUs in Feb 2017. Bilibili Cartoon ranks first in the vertical digital video mobile apps category with 30.52 million active users, followed by Hanju TV (Korean drama), Migu Movie, AcFun, Renren Movie, 1905 Movie, etc.

CCTV mobile app is the top one in TV programs category, followed by Migu, Mobile TV, and Yuntu TV.

In the short videos category, Kuaishou mobile app ranks on top in China in Feb 2017 with over 86 million active users, followed by Meipai, Xiaokaxiu, Miaopai, and Doupai.

Douyu, Huya, Inke, YY Live, and Huajiao are the top 5 digital video broadcasting mobile apps by MAU in Feb 2017.

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