Huya’s total net revenues for the third quarter of 2020 increased by 24.3% to RMB2,814.8 million (US$414.6 million), from RMB2,265.1 million in Q3 2019.
Net income attributable to Huya Inc was RMB253.0 million (US$37.3 million) for Q3 2020, representing an increase of 105.3% from RMB123.2 million in Q3 2019.
Non-GAAP net income attributable to Huya was RMB361.2 million (US$53.2 million) for Q3 2020, representing an increase of 75.0% from RMB206.4 million in Q3 2019.
The average mobile MAUs of Huya Live in Q3 2020 reached 74.2 million, representing an increase of 16.3% from 63.8 million in Q3 2019. And, the average MAUs of Huya Live in Q3 2020 reached 172.9 million, representing an increase of 18.3% YoY.
The total number of paying users of Huya Live in Q3 2020 reached 6.0 million, representing an increase of 13.2% from 5.3 million in Q3 2019.
On October 12, 2020, Huya and DouYu jointly announced that they had entered into an Agreement and Plan of Merger (with Tiger Company Ltd., a direct wholly-owned subsidiary of Huya, and, solely for the limited purposes set forth therein, Nectarine Investment Limited (“Tencent”), a wholly-owned subsidiary of Tencent Holdings Limited.
Pursuant to the Merger Agreement, Huya will acquire all the outstanding shares of DouYu, including ordinary shares represented by ADSs, through a stock-for-stock merger.
At the effective time of the merger, each ordinary share of DouYu will be canceled in exchange for the right to receive 7.30 Class A ordinary shares of Huya, and each DouYu ADS will be canceled in exchange for the right to receive 0.73 Huya ADS.
If the Merger is completed, the shareholders of Huya and DouYu immediately prior to the Merger, respectively, will each hold approximately 50% shares of the combined company on a fully diluted basis.
Douyu’s performance highlights in Q3 2020:
- Total net revenues in Q3 2020 increased by 37.0% YoY to RMB2,546.5 million (US$373.3 million)
- Gross profit increased by 16.6% YoY to RMB369.4 million (US$54.2 million), implying a gross margin of 14.5% in Q3 2020, compared with 17.0% in Q3 2019.
- Net income in Q3 2020 was RMB59.6 million (US$8.7 million), compared with a net loss of RMB165.4 million in the same period of 2019, implying a net margin of 2.3% in Q3 2020.
- Adjusted net income was RMB98.7 million (US$14.5 million), compared with RMB72.2 million in the same period of 2019, implying an adjusted net margin of 3.9% in Q3 2020, compared with 3.9% in the same period of 2019.
- The average MAUs reached 194.0 million, up 18.6% YoY
- The average mobile MAUs increased by 14.4% YoY to 59.6 million
- Quarterly average paying users increased by 12.7% to 7.9 million
China eSports market overview and forecast 2020
Q2 2020
Douyu’s average MAUs in the second quarter of 2020 was 165.3 million, compared with 162.8 million in Q2 2019. The average mobile MAUs in Q2 increased by 15.4% to 58.4 million from 50.6 million in Q2 2019.
Douyu’s quarterly average paying users in the second quarter of 2020 increased by 13.4% to 7.6 million from 6.7 million in Q2 2019.
Its competitor Huya, who’s also Tencent’s, saw its average mobile MAUs in Q2 2020 reach 75.6 million, representing an increase of 35.2% from 55.9 million in Q2 2019. Its average MAUs of Huya Live in Q2 2020 reached 168.5 million, representing an increase of 17.1% from 143.9 million in Q2 2019.
The total number of paying users of Huya Live in Q2 of 2020 reached 6.2 million, representing an increase of 26.5% from 4.9 million in Q2 2019.
China gaming revenues rose 25% in Q1 2020
Douyu’s Financial Highlights
Total net revenues in Q2 2020 increased by 33.9% to RMB2,508.2 million (US$354.4 million) from RMB1,872.7 million in Q2 2019.
Gross profit in Q2 2020 increased by 73.7% to RMB522.9 million (US$73.9 million) from RMB301.1 million in Q2 2019, implying a gross margin of 20.8% in Q2 2020, compared with 16.1% in Q2 2019.
Net income in Q2 2020 was RMB319.3 million (US$45.1 million), compared with RMB23.2 million in Q2 2019, implying a net margin of 12.7%, compared with 1.2% in Q2 2019.
Adjusted net income in Q2 2020 was RMB322.9 million (US$45.6 million), compared with RMB52.6 million in Q2 2019, implying an adjusted net margin of 12.9% in Q2 2020, compared with 2.8% in Q2 2019.
Average MAUs in Q2 2020 were 165.3 million, compared with 162.8 million in Q2 2019.
Huya’s Financial Highlights
Total net revenues for the second quarter of 2020 increased by 34.2% to RMB2,697.2 million (US$381.8 million), from RMB2,010.5 million for the same period of 2019.
Net income attributable to HUYA Inc. was RMB226.8 million (US$32.1 million) for the second quarter of 2020, representing an increase of 86.2% from RMB121.8 million for the same period of 2019.
Non-GAAP net income attributable to HUYA Inc was RMB351.0 million (US$49.7 million) for the second quarter of 2020, representing an increase of 106.0% from RMB170.4 million for the same period of 2019.
