BRIEF: Huya returns to revenue growth after three years of contraction
Livestream gaming company Huya Inc. (HUYA.US) on Tuesday reported it returned to revenue growth in the first quarter of this year, ending more than three years of contraction, as it emerged from a difficult period that included growing competition, regulatory crackdowns and the veto of its merger with a smaller rival.
Huya said its revenue totaled 1.51 billion yuan ($210 million) in the first three months of this year, up slightly from 1.5 billion yuan a year earlier. Before that, the last time the company reported year-on-year growth was the third quarter of 2021, when its revenue rose 5.7% to 2.98 billion yuan from 2.81 billion yuan a year earlier.
The company’s core livestreaming revenue continued to fall, dropping about 10% to 1.14 billion yuan year-on-year in the latest quarter. But that was offset by a 52% rise in revenue from its game-related services, which reached 370 million yuan during the quarter. The company reported a non-GAAP net profit of 24 million yuan in the latest three-month period, down from 92.5 million yuan a year earlier.
Huya shares rose 1.9% on Tuesday in New York after the report’s release. The stock is up 25% so far this year.
By Doug Young
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