xijian/E+ via Getty Images
Huya (NYSE:HUYA) logged some modest gains Tuesday morning against a lower market in Communications stocks after the Chinese streaming company’s second-quarter earnings report showed declining revenue but boosted net profits amid cost controls.
The company also authorized a share repurchase program covering buybacks of up to $100M in American Depositary Shares or ordinary shares.
Overall net revenues slipped 20% year-over-year to 1.82B yuan (about $251.2M), mainly as quarterly paying users of Huya Live dropped significantly. The company attributed that to a “soft macro and industry environment, as well as the increase in offline entertainment activities” that tamped down time spent by “long-tail” users of the platform.
But cost of revenues slipped nearly 25% amid lower revenue sharing fees, content costs and bandwidth costs.
That led gross profit to rise to 273M yuan (about $37.7M) from 219.1M yuan, and gross margin rose to 15% from a year-ago 9.6%. Operating loss narrowed to 28.8M yuan ($4M) from a year-ago 81.1M yuan.
And alongside some sharply higher investing income, non-GAAP attributable net income jumped to 115.1M yuan (about $15.9M) from 5.9M yuan.
“Although the impact of increasing offline recreational activities among our users continued into the second quarter of 2023, we maintained a stable user base through our ongoing efforts to enrich e-sports, game and entertainment content,” co-CEO Junhong Huang said.
Revenue by segment: Live streaming, 1.72B yuan (about $236.6M), down 16.4%; Advertising and other, 105.8M yuan (about $14.6M), down 52.6%.
Liquidity at quarter-end came to 10.85B yuan (about $1.5B), up from last quarter’s 10.35B yuan.
#Huya #gains #cost #controls #boost #profits #company #launches #buyback #NYSEHUYA
