China’s leading live gaming platform Huya Inc. announced its third-quarter 2022 financial results on November 15. Although macroeconomic and regulatory sentiment continued to shift, which could impact the live streaming industry as a whole, Huya reported quarterly growth in total net revenue and net income, the mobile MAU Huya Live’s average steadily increasing to 86 million.
To be more specific, Huya’s total net income for the third quarter was 2,378.5 million yuan ($334.4 million), with non-GAAP net income of 106.1 million. yuan ($14.9 million). The increase in Huya Live’s average mobile MAU, according to Dong Rongjie, CEO of Huya, was attributed to Huya’s enhanced interactive experience offerings, as well as engaging gaming and entertainment content. Moreover, the user growth is rather encouraging, because on the one hand, it has been increased from a relatively high base compared to the same period last year; and on the other hand, the company adopted stricter marketing channel spend strategies to help contain costs, as evidenced by Huya’s continued efforts to increase efficiency and reduce costs during the third quarter.
According to Ashley Xin Wu, Huya’s Vice President of Finance, Huya focused on refining operations within the organization during the third quarter of 2022. When it comes to operational optimization, Huya has started bringing strategic adjustments to its overseas business to allocate resources to key areas since April. . Ashley said on the conference call that these initiatives have resulted in a more streamlined and efficient business, and that the company “looks forward to further benefits from these adjustments in our overseas operations.”
Additionally, savings in broadcaster costs and bandwidth utilization also contributed to lower overall costs in the quarter. Thanks to certain optimization initiatives that reduced sales and marketing expenses, Ashley said that “our business has become more streamlined and we have reduced our total operating expenses by 27.3% in the third quarter from a year to year”. She also said that against the backdrop of a volatile market environment, the company will continue to be cautious and consolidate its business and financial foundations.
As a live game streaming company in China, Huya’s leading position in the market is bolstered by its long-term goal of improving live streaming technologies, exploring new product features and developing enrich quality content.
Regarding the advancement of products and technology in the third quarter, Huya explored the application of virtual live broadcast technologies, which include the development of digital humans and the provision of broadcast tools. live from avatar on its platform. These virtual streaming technologies can be integrated into broadcast sessions to help create more immersive viewing experiences and inspire more engaging user interactions.
To demonstrate, Huya introduced a “Virtual Live House” tool on its mini-tool open platform. In the live virtual scene where the background can be separated and cut out, streamers’ images and actions are automatically recognized. The public can also have their own virtual characters to control and interact with the steamers. Based on these advantages, Huya partnered with CrossFire gaming and launched the industry’s first virtual viewing feature for live streaming tournaments in the final of Pro CrossFire League in August.
And building on the success of the CrossFire event, Huya has implemented an enhanced virtual venue for League of Legends Worlds 2022 to provide an immersive virtual viewing option. Additionally, in order to provide users with more accurate game scenes across all devices, Huya has also extended HDR-ready display support for match viewing for mobile apps, web pages and PC clients. for live streaming and video on demand. Additionally, there is a “Tournament Assistant” feature for the event that makes it easy for users to access real-time tournament information without leaving the live page. These characteristics have helped to maintain Huya’s leading market share in China for this highly anticipated 2022 World Cup.
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Over the years, Huya has continued to invest in enriching and diversifying content, particularly in professional e-sports tournaments. 95 such tournaments were broadcast during the third quarter, with the total audience for these events reaching approximately 660 million, representing a 12% year-over-year growth. In the third quarter, the most popular included the summer seasons of League of Legends Pro League (LPL), King Pro League (KPL) and CrossFire Pro League (CFPL) and ESL Pro League Season 16. According to data provided during the conference call , the number of peak concurrent users of the LPL Summer increased by 57% compared to the previous edition.
Self-organized esports tournaments and PGC entertainment shows are another source of great content. Huya aired 23 events during the third quarter, generating a total audience of approximately 100 million viewers. Two major Huya-branded tournaments, the Thunder Kings Honor Series and the PeaceKeeper Elite All Star Summer Cupcontinued to perform well over the summer.
All of these above efforts have paid off. According to Huya, in the third quarter, the average mobile MAU of Huya Live increased to 86 million, the average daily time spent by Huya Live mobile app users increased by about 7% year-on-year. and the retention rate of app users the following month stabilized. over 70%. Even though the ongoing macro headwinds have affected the whole industry and the company to some extent, Huya CEO Dong Rongjie believed that by continuing to improve live streaming technology, to explore new product features and enrich quality content, this will improve Huya’s resilience in uncertain market conditions. This way, according to Dong Rongjie, it can help Huya “better interact with our users, putting us in a stronger position to seize future opportunities in the gaming and live streaming market.”