Gaming company Huya Inc. (HUYA.US) on Tuesday reported its revenue rose 11% year-on-year to 1.74 billion yuan ($258 million) in the second quarter, as a decline for its core livesteaming business was offset by strong growth for game-related services and advertising.
Huya’s livestreaming revenue fell 4.3% during the quarter to 1.1 billion yuan from 1.15 billion yuan a year earlier, as the company cited the livestreaming industry’s current environment for the weakness. But its game-related services and advertising segment rose 54% year-on-year to 638 million yuan, accounting for about 37% of revenue from just 26% a year earlier.
The company’s gross margin improved to 14.7% during the quarter from 13.5% a year earlier. It returned to the black with a quarterly net profit of 1.6 million yuan, reversing a loss of 5.5 million yuan a year earlier. But Huya’s non-GAAP net income fell to 36.4 million yuan in the second quarter from 47.5 million yuan a year earlier.
Huya’s stock fell 0.4% on Tuesday to close at $2.42. The shares are down about 16.6% this year.
By Doug Young
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