eSports

Huya Doubles Q3 Profits to $38M, Continues Increasing Its User Base

Chinese live-streaming platform Huya reported its financial results for the third quarter of 2020. The company generated net revenues of ¥2.81B RMB ($425M USD) for the period ended Sept. 30, which marks an increase of roughly 24% compared to ¥2.27B ($343M) in Q3 2019.

Huya’s major source of revenues was its live streaming business, which generated ¥2.66B ($402M) or roughly 94% of total revenues. The company attributed the increase in live streaming revenues of 23.2% primarily to an increase in the number of paying users and the average spending per paying user on Huya Live.

The company recorded an increase of 18.3% to 172.9M in average monthly active users (MAUs) on its platform during the third quarter of the year. Mobile users, measured in average mobile monthly users, increased by 16.3% to 74.2M from 63.8M in the third quarter of 2019. Huya’s total number of paying users reached 6M in Q3 2020, representing an increase of 13.2% from 5.3M in the third quarter of 2019.

In total, Huya ended the third quarter of 2020 with a net profit of ¥253M ($38.2M), up 105.3% year-over-year from ¥123M ($18.6M) in the same period of last year.

In October, Huya entered into an agreement with its Chinese competitor DouYu to merge the two businesses. Huya will acquire all outstanding shares of DouYu in a stock-for-stock merger at an exchange ratio of 0.73 shares of Huya per share of DouYu. The merger’s completion will result in DouYu becoming a privately-held and wholly-owned subsidiary of Huya, therefore, being delisted from the NasdaqGS. Tencent Holdings, which is the largest shareholder of both companies, will control 67.5% of the new company’s voting power once the merger is completed.

Note: The Esports Observer used the exchange rate in effect as of Nov. 12 at a rate of 6.62151 RMB to 1 USD for currency conversions in this article.