HUYA's 2025 Q2 Earnings Call: Unpacking Contradictions in Game Services, Live Streaming, and AI Integration

Game-Related Services Revenue Growth:
- Huya's game-related services, advertising, and other revenues grew to RMB 414 million, contributing over 26.4% of total net revenues.
- This growth was driven by deepened cooperation with Tencent and other game companies, as well as the expansion of sales of in-game accessories and cosmetics.

AI Integration and Innovation:
- Huya is leveraging AI in various aspects of its operations, including AI live streaming, AI plus IP, and AI services, utilizing its proprietary gaming datasets.
- Initiatives include AI agent Hu Xiao Ai for enhanced e-sports stream interaction and the AI game companion robot, Huya AI Superbot, which has gained significant market buzz.

Overseas Expansion and User Base Growth:
- Huya's overseas initiatives have reached tens of millions of monthly active users internationally through its mobile application service platform and live streaming.
- This growth is positioning Huya to capture opportunities in the growing overseas game-related services market, particularly in FPS and mobile genres.

Cost Management and Profitability:
- Huya achieved breakeven non-GAAP operating profit for the quarter, marking a significant milestone in its path to improved profitability.
- Operational efficiency and cost management, particularly in content costs, were key to this achievement.

Content and Partnership Strategy:
- Huya has strengthened collaborations with third-party content platforms, co-creating professional content and expanding its reach.
- The company is also strategically entering the game publishing arena, as evident in its pilot content-led launch strategy for Goddess of Victory: Nikke.