GUANGZHOU, China - HUYA Inc . (NYSE: HUYA), a leading game live streaming platform in China, has reported a significant beat on its first-quarter earnings, surpassing analyst expectations.
The company announced an adjusted EPS of RMB0.39 ($0.05), which was RMB0.59 higher than the analyst estimate of a loss of RMB0.20. Revenue for the quarter reached RMB1.5 billion ($208.3 million), slightly above the consensus estimate of RMB1.49 billion.
In comparison to the same period last year, HUYA's total net revenues saw a decline from RMB1,962.5 million in the first quarter of 2023. However, the company's net income attributable to HUYA Inc. increased to RMB71.0 million ($9.8 million) from RMB39.6 million, marking a positive turn in profitability. The adjusted net income also saw a rise from RMB85.1 million to RMB92.5 million ($12.8 million) year-over-year (YoY).
Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya (NYSE:HUYA), attributed the quarter's success to strategic execution, which led to advancements despite a challenging industry environment. The company's efforts in upgrading the Huya Live mobile application and hosting innovative e-sports events contributed to a marginal YoY growth in average mobile monthly active users (MAUs), reaching 82.6 million. Additionally, a significant increase in revenues from game distribution and advertising services, as well as in-game item sales, was reported, with a YoY surge of 137.6%.
Ms. Ashley Xin Wu, HUYA's Acting Co-Chief Executive Officer and Vice President of Finance, highlighted the company's improved gross margin, which rose to 14.7% from 13.7% YoY. This improvement was attributed to growing revenue contributions from businesses with higher gross margins and ongoing cost optimization efforts.
Despite the soft macroeconomic conditions and strategic business adjustments, HUYA managed to reduce total operating expenses by 17.8% YoY, contributing to the overall profitability enhancement. The company also emphasized its commitment to shareholder value by repurchasing shares and declaring a special cash dividend totaling approximately $150 million.
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