China's HUYA Q2 revenue rises as game services grow
HUYA•Outlook
The company did not provide specific financial guidance for future quarters or the full year.
Result drivers
- Game-related services growth — Revenue from game-related services, advertising and other segments rose 54% year over year, driven by higher in-game item sales, advertising, and Goose Goose Duck mobile commercialization.
- Live streaming decline — Live streaming revenue fell year over year, which the company attributed to the live streaming industry's current environment.
- Higher marketing spend — Sales and marketing expenses rose about 58% year over year, mainly due to promotional efforts for Goose Goose Duck mobile.
Key details and analyst coverage
| Metric | Actual |
|---|---|
| Q2 Revenue | RMB 1.74 bln |
| Q2 Net Income | RMB 1.62 mln |
| Q2 Gross Profit | RMB 254.99 mln |
| Q2 Operating Income | -RMB 7.02 mln |
| Q2 Pretax Profit | RMB 3.39 mln |
The current average analyst rating on the shares is buy, with 5 strong buy or buy ratings, 4 ratings and no or ratings.
