Benefitting from the expansion of its user base, Huya, a leading game live streaming platform in China, continued gaining profits for the seventh consecutive quarter, according to its newly released earnings report in the second quarter of 2019.
Net revenues increased by 93.4% annually to 2.01 billion yuan ($292.9 million), beating the high end of the company’s expected growth of 72.4%. Unadjusted profit, or net income attributable to Huya, was 121.8 million yuan ($17.7 million), compared with a loss of 2.12 billion yuan in the second quarter of 2018.
The stock price went up to $21.33 with a 4.6% increase after the release.
“We delivered another solid quarter with steady growth in our key financial and operating metrics, underscoring the proven effective strategies and strong execution across our business,” said Dong Rongjie, chief executive officer of Huya.
The platform had 143.9 million monthly active users, including 55.9 million from mobile phones, up 57% from the same period of last year. The increase is primarily driven by the company’s mobile strategy, diversification of content offerings and continued efforts in converting active users into paying users, according to AlphaStreet.
Gaming live streaming has been the company’s key focus. The segment’s revenue increased by 93.7% to 1,921.5 million yuan ($279.9 million) in the second quarter of 2019, accounting for 95.6% of the company’s net revenue. The increase is mainly because of the growth in the number of paying users and the average amount of money they spend.
Huya expects net revenues to grow between 66.1% and 72.3% year-over-year to 2.12 billion yuan ($300 million) to 2.20 billion yuan ($310 million) in the third quarter of 2019.
“Looking ahead, we will remain dedicated to strengthening our leadership in China game live streaming industry and enhancing our presence across the globe,” Dong said.