Hello Group expects Q3 2026 net revenues between RMB2.4 bln and RMB2.5 bln
Overview
China online social platform's Q2 revenue fell 5.1% yr/yr
Company returned to net profit in Q2 after loss a year earlier
Overseas revenue rose 52% yr/yr, partly offsetting domestic weakness
Result Drivers
Domestic weakness - Co said domestic revenue fell due to external factors affecting broadcaster operations on Momo, weak consumer sentiment, and a decline in Tantan's user base
Overseas expansion - Co said overseas revenue rose on growth of new audio- and video-based products in MENA and incremental gains from dating brands outside MENA
Cost increases - Co said costs rose due to higher production costs, increased marketing for new overseas apps, and higher payment channel costs for overseas business
Analyst Coverage and Valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
MOMO•
