NEW YORK - Shares of Chinese game live streaming platform Huya Inc. (NYSE:HUYA) jumped 5.2% in premarket trading on Tuesday after the company reported better-than-expected third quarter results.
Huya posted adjusted earnings per share of RMB0.34 ($0.05), significantly beating analyst estimates of RMB0.20. Revenue came in at RMB1.54 billion ($219.1 million), slightly above the consensus forecast of RMB1.53 billion.
While total revenue declined 7.6% YoY, game-related services, advertising and other revenues surged 209.3% YoY to RMB410.2 million ($58.4 million). This segment now accounts for 26.7% of total net revenues, a record high contribution.
"In the third quarter of 2024, our game-related services business achieved robust growth thanks to our continuous efforts to enhance cooperation with game studios and deepen broadcasters' engagement on our platform," said Junhong Huang, Acting Co-Chief Executive Officer of Huya.
The company maintained stable user engagement, with average mobile monthly active users reaching 84.0 million in Q3. Paying users rose 9.5% YoY to 4.6 million, driven by increased users paying for game-related services.
Despite macroeconomic headwinds impacting live streaming revenues, Huya improved efficiency by reducing total operating expenses by 20.9% YoY. The company ended the quarter with RMB8.08 billion ($1.15 billion) in cash and cash equivalents.
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