HUYA (HUYA) Q3 Earnings call transcript Nov 12, 2024
2min read HUYA, a leading live streaming platform in China, recently held its third-quarter earnings call, showcasing a robust performance in its game-related services business and strategic investments. The call was marked by optimistic outlooks and strategic plans, indicating a promising future for HUYA.
Financial Highlights
HUYA's total net revenues for the third quarter reached RMB 1.54 billion, a testament to the company's resilience in the face of challenging macroeconomic conditions. Notably, game-related services, advertising, and other businesses contributed significantly to the top line, up by 209.3% year-over-year and 32.9% quarter-over-quarter. This growth was attributed to increased revenue from game distribution and advertising services, as well as in-game item sales. The company also reported a non-GAAP net income of RMB 78 million, demonstrating a stable operating performance.
Game-Related Services
The third quarter saw significant strides in HUYA's game-related services business, with game distribution and advertising revenue reaching a record high. HUYA's close collaboration with game developers on new game launches and version updates, coupled with its strategic focus on broadcasters, has led to a strong growth in distribution revenue. The company also reported an impressive increase in the total gross receipts from games distributed through HUYA's distribution channel, indicating a broadening reach and strong demand for its services.
Investments and Strategic Collaborations
HUYA's strategic investments in in-game item sales and exclusive collaborations have proven to be fruitful. The platform's initiative to launch exclusive and customized in-game items for its users and broadcasters has garnered enthusiastic responses, validating the growth potential of this business. Furthermore, HUYA's strategic partnerships with content platforms and selective distribution of game live streams and video content across Tencent's ecosystem and other platforms have significantly expanded its reach, with an estimated 140 million users as of September.
Looking Ahead
HUYA's management expressed confidence in the continued growth of its game-related services business, citing a high-quality gaming user base and long-term partnerships with game developers as key advantages. The company also plans to deepen collaborations with additional game developers and broaden its reach in the vast gaming market. HUYA's strategic focus on enhancing user engagement and creating differentiated live streaming experiences is expected to pave the way for more diversified commercialization forms in the future.
Financial Strategy and Shareholder Returns
HUYA's financial strategy includes a focus on consolidating its financial fundamentals while allocating funds for business development and investments in the industry chain. The company also emphasized its commitment to shareholder returns, having already returned approximately USD 400 million to shareholders through special cash dividends in 2024. Future dividend plans and share repurchase strategies will depend on market conditions and approval by the company's Board of Directors.
In conclusion, HUYA's third-quarter earnings call underscored a period of strategic growth and financial stability for the company. Its strong performance in game-related services and strategic collaborations, coupled with a forward-looking outlook, position HUYA well for continued success in the gaming industry.