FAST NEWS: Hello Group’s profit soars as Tantan breaks even
The latest: Dating app operator Hello Group Inc. (MOMO.US) on Thursday reported its net profit reached 568 million yuan ($78.3 million) in the second quarter, up 64.5% year-on-year and 45.6% quarter-over-quarter.
Looking up: The company’s revenue rose 0.9% year-on-year to 3.14 billion yuan in the second quarter, beating market forecasts for 3.04 billion yuan, mainly due to a 4.5% increase in revenue from live video services to 1.59 billion yuan.
Take Note: Revenue from the company’s Tantan segment decreased by 3% to 320 million yuan as a result of lower membership subscription revenue. But the business reported an operating profit of 30.2 million yuan, reversing an operating loss of 131 million yuan in the same period last year.
Digging Deeper: Founded in 2011 and listed on the Nasdaq in December 2014, Hello Group, formerly known as Momo Inc., has several mobile apps, including Momo and Tantan, and is often referred to as the “Tinder of China.” When Hello Group acquired Tantan in 2018, the latter was seen as a rising star due to the popularity of its two mobile social apps. However, Tantan’s performance has declined significantly in recent years, and it failed to make profits for several years in a row, recording a loss of 334 million yuan last year. But Hello Group has been overhauling the service, leading it to achieve a break-even milestone in the second quarter, the company said.
Market Reaction: Shares of Hello Group slid 9.4% to $8.63 on Thursday in New York. The stock now trades in the middle of its 52-week range.
Translation by A. Au
Have a great investment idea but don’t know how to spread the word? We can help! Contact us for more details.
To subscribe to Bamboo Works weekly free newsletter, click here
