YY Q3 Earnings And Revenues Beat Estimates, Increase Y/Y
Zacks Investment Research | Nov 13, 2018 10:04PM ET
Shares of YY Inc. (NASDAQ:YY) plunged 1.16% on Nov 13, following the announcement of third-quarter 2018 results. Notably, the stock has lost 46.6% against the industry’s decline of 30.4% on a year-to-date basis.
YY Inc. (YY) delivered third-quarter 2018 earnings of $1.76 per American depositary shares (ADS), which beat the Zacks Consensus Estimate by 3 cents.
Revenues totaled $597 million, which surpassed the Zacks Consensus Estimate of $590 million.
In domestic currency, earnings increased 11.1% to RMB 12.07 per share on revenues of RMB 4.10 billion, which jumped 32.6%.
Top-Line Details
The top-line growth can primarily be attributed to strong live streaming revenues, which jumped 35.6% year over year to RMB 3.89 billion, accounting for 95% of total net revenues in the reported quarter. Notably, Other revenues decreased 6.7% to RMB 205.9 million.
The stellar performance of YY Live and HUYA contributed to the impressive top-line growth. Huya and YY Live contributed 68.8% and 31.2%, respectively to total live streaming revenues in the third quarter. Further, the year-over-year growth at Huya and YY Live was t 15.5% and 120.3%, respectively.
Additionally, Mobile contributed 62.4% of YY’s live streaming revenues.
Mobile live streaming Monthly Active Users (MAU) increased 20.7% year over year to 88.1 million, as the company added new features. Live streaming paying users increased 26.3% to 8 million. Mobile paying users constituted 73.9% the total live streaming paying users in the reported quarter.
Cost of revenues for both Huya and YY Live increased 112.2% and 15.4%, respectively, year over year. The increase in revenue sharing fees and content costs paid to performers and content providers was in line with the increase in live streaming revenues for both YY Live and Huya segments.
Furthermore, management announced a cooperation agreement with Xiaomi, which will enable the company to operate certain entertainment live streaming services on Xiaomi Live. Additionally, the company is also developing products for its audio live streaming segment, to target mobile users in China.
Notably, YY was successful in retaining its users in the reported quarter, with content enrichment and cross-channel promotions. The company expects to expand its presence in the overseas market on the back of early-stage innovative products and rapid user growth.
YY Inc. Price, Consensus and EPS Surprise
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.