BRIEF: Game-related services drive Huya’s 10% revenue growth in third quarter

Livestream gaming company Huya Inc. (HUYA.US) announced on Wednesday that its revenue for the third quarter rose 9.8% year-on-year to 1.69 billion yuan ($237 million), marking its strongest quarterly growth this year.

Revenue from the company’s newer game-related services, advertising and other businesses jumped 29.6% to 532 million yuan, accounting for over 30% of the total for the first time, as the company maintained its revenue growth after several years of declines. Livestreaming revenue edged up 2.6% to 1.16 billion yuan, mainly driven by higher average spending per paying user. As of the third quarter, Huya’s monthly active users (MAUs) totaled 162 million.

The company reported a quarterly net profit of 9.6 million yuan, reversing a net loss of 5.5 million yuan in the previous quarter, but down 59.3% from its 23.6 million yuan profit a year earlier. Its adjusted net profit came in at 36.3 million yuan, down 53.5% year-on-year. Its gross margin remained stable at 13.4%, up slightly from 13.2% a year earlier.

Huya’s stock opened higher on Wednesday in New York after the results announcement, but later reversed course and closed down 4.29% at $2.68. The stock is down about 27% over the past six months.

By Lee Shih Ta

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