YY Inc (ADR)(NASDAQ: YY) stock rose over 0.4% on August 10th, 2017 after a volatile session (as of 2:25PM EDT; Source: Google finance). The group’s live streaming business, including YY Live and Huya broadcasting, showed decent growth during the second quarter of 2017. Mobile live streaming monthly active users (MAU) surged 27.1% yoy to over 66.1 million, while overall live streaming paying users enhanced 46.1% yoy to over 5.7 million. YY Live showed good results. The group launched Happy Werewolf Kill, a small-room online social game in April 2017.
They launched the short-form video services in YY Live with more diverse content and social features, while Huya showed the user as well as revenue growth. YY would continue to expand product offerings on their live streaming social media platform.
YY total net revenues surged 31.7% yoy to RMB2, 609.0 million, surpassing their forecasts. Live streaming revenues growth by 42.9% on a year-over-year basis drove the performance which reached RMB2, 373.4 million during the quarter. Online games revenues reached RMB154.0 million (US$22.7 million) in the second quarter of 2017, from RMB188.3 million in the same period last year while Membership revenue rose to RMB52.2 million (US$7.7 million) from RMB72.1 million in the pcp. Other revenues, which comprises online advertising revenues, fell to RMB29.4 million (US$4.3 million) in the second quarter of 2017, from RMB59.4 million in pcp due to online gaming, membership, and other revenues pressure as the firm is focusing on mobile live streaming business.
Non-GAAP net income spiked 55.2% yoy to RMB597.2 million in the second quarter of 2017, wherein Huya’s Non-GAAP operating losses further shrank year over year from RMB146.6 million to RMB11.1 million. Non-GAAP net margin enhanced to 22.9% in the second quarter of 2017 from 19.4% in pcp driven by better operating leverage and product cost and expense control.
They forecasted net revenues in the range of RMB2.75 billion and RMB2.85 billion for the next quarter, which is year-over-year growth of over 31.6% to 36.4%. YY stock already generated over 98.5% in this year to date. But three analyst recommend a $58.67 target price which is 24.8% downside (Source: tipranks.com)