Chinese live-streaming platform Huya reported its financial results for the second quarter of 2020. The company generated net revenues of ¥2.7B RMB ($382M USD) for the period ended June 30, which marks an increase of roughly 34% compared to ¥2B ($285M) in Q2 2019.
Huya’s major source of revenue was its live-streaming business, which generated ¥2.6B ($363M) or roughly 95% of total revenues. The company attributed the increase in live-streaming revenues of 33.5% primarily to the rise in average spending per paying user and the number of paying users on Huya, which was driven by the improvement of its content, products, and services.
The company recorded an increase of 17.1% to 168.5M in average monthly active users (MAUs) on its platform during the second quarter of the year. Mobile users, measured in average mobile monthly users, increased by 35.2% to 75.6M from 55.9M in the second quarter of 2019. Huya’s total number of paying users reached 6.2M in Q2 2020, representing an increase of 26.5% from 4.9M in the second quarter of 2019.
In total, Huya ended the second quarter of 2020 with a net profit of ¥227M ($32.1M), up 86% year-over-year from ¥122M ($17.3M) in the previous year.
On Monday, Huya’s board of directors received a preliminary non-binding proposal letter from Tencent Holdings proposing that Huya merge with DouYu. Tencent is the largest shareholder in both live-streaming platforms.
Furthermore, Tencent is looking to purchase an additional 31M shares of Huya, 30M from its previous parent company JOYY and 1M from its CEO Rongjie Dong. If Tencent is able to complete the intended share transfers, it will increase its shareholding in Huya to 51% and hold 70.4% of the company’s total voting power.
Note: The Esports Observer used the exchange rate in effect as of June 30 at a rate of ¥7.0651 RMB to $1 USD for currency conversions in this article.
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