Huya (HUYA, Financial) has released its financial results for the third quarter ending September 30, 2024. The company reported net revenue of 1.5377 billion RMB (approximately $219.1 million), down from 1.6643 billion RMB in the same period of 2023. Net profit attributable to Huya reached 23.6 million RMB (around $3.4 million), an increase from 10.5 million RMB in 2023. Under non-GAAP measures, net profit was 78 million RMB (about $11.1 million), compared to 106.7 million RMB last year.
Revenue from live streaming services was 1.1275 billion RMB (around $160.7 million), a decline from 1.5317 billion RMB the previous year. Game-related services, advertising, and other income totaled 410.2 million RMB (approximately $58.4 million), decreasing from 1.326 billion RMB.
The cost of revenue fell by 6.1% to 1.3341 billion RMB (about $190.1 million), driven by reductions in revenue-sharing fees, content costs, broadband, and server hosting expenses. Revenue-sharing and content costs dropped by 4.9% to 1.1727 billion RMB (around $167.1 million). Broadband and server hosting fees decreased by 26.4% to 61.4 million RMB (approximately $8.8 million).
Gross profit stood at 203.6 million RMB (about $29 million), down from 242.8 million RMB. The gross margin slipped to around 13.2% from 14.6% in the previous year. R&D expenses decreased by 12.1% to 125.5 million RMB (about $17.9 million). Sales and marketing costs reduced by 30.4% to 73.3 million RMB (approximately $10.4 million). General and administrative expenses were down by 24.7% to 50 million RMB (about $7.1 million).
Other income was 13 million RMB (roughly $1.8 million), compared to 40.2 million RMB in 2023. Operating loss was 32.3 million RMB (about $4.6 million), slightly up from 31.6 million RMB. Interest income was 96.6 million RMB (approximately $13.8 million), compared to 128.5 million RMB a year ago.
Basic and diluted earnings per ADS were 0.10 RMB (about $0.01), up from 0.04 RMB in the previous year. Under non-GAAP standards, adjusted earnings per ADS were 0.34 RMB (around $0.05), down from 0.44 RMB and 0.43 RMB, respectively, last year.
As of September 30, 2024, Huya held cash, equivalents, short-term deposits, short-term investments, and long-term deposits totaling 8.0784 billion RMB (approximately $1.1512 billion), slightly down from 8.1933 billion RMB as of June 30, 2024.
Average mobile Monthly Active Users (MAU) for Huya's live streaming services reached 84 million, compared to 86 million in 2023. The number of paying users increased by 9.5% to 4.6 million, primarily due to growth in game-related services.
Huya's board authorized a share repurchase plan in August 2023, allowing the company to buy back up to $100 million worth of ADS or ordinary shares within 12 months. In August 2024, the plan expiration was extended to March 31, 2025. By September 30, 2024, Huya had repurchased 18.2 million ADS for a total of $61.1 million.
