Huanju group announced its third quarter results: net profit of $119 million, up 64% year on year

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Sina science and technology news Beijing time on November 17 morning news, happy gathering group( Nasdaq:YY In the third quarter of 2020 as of September 30, net income increased by 36.1% to 6.286.4 million yuan (US $925.9 million), compared with 4.613 billion yuan in the same period in 2019. Net profit was 2 303.2 million yuan (US $339.2 million), compared with 61.8 million yuan in the same period in 2019. Under non US GAAP, net profit was 809.4 million yuan (US $119.2 million), compared with 493.4 million yuan in the same period in 2019.
Third quarter operating results:
The global average monthly mobile active users fell 4.0% to 390.1 million, compared with 406.3 million in the same period of last year.
The average monthly active mobile users of like (formerly like) increased by 3.8% to 104 million, compared with 100.2 million in the same period in 2019.
The number of mobile active users of global live broadcasting services fell by 2.3% year-on-year to 92 million, compared with 94.1 million in the same period in 2019. Among them, 1) YY live broadcast was 41.3 million, with a year-on-year growth of 3.4%; 2) outside China, it was 50.7 million, including 28 million from bigo live, with a year-on-year increase of 27.7%; and 22.7 million from Hago, with a year-on-year decrease of 29.7%.
The total number of households paid by YY decreased by 4.7% to 4.1 million, compared with 4.3 million in the same period in 2019, mainly due to the impact of the epidemic.
Third quarter financial results:
net income
Net income in the third quarter of 2020 increased by 36.1% year-on-year to 6.286.4 million yuan (US $925.9 million), compared with 4.6173 billion yuan in the same period in 2019.
Among them, the live broadcast revenue increased by 40.1% to RMB 6049.1 million (US $890.9 million), compared with RMB 4.3178 billion in the same period of 2019.
Other income decreased by 20.8% year-on-year to RMB 237.3 million (US $34.9 million), compared with RMB 299.4 million in the same period in 2019.
Revenue cost and gross profit
In the third quarter of 2020, revenue and cost increased by 38.8% to 3961.7 million yuan (583.5 million US dollars), compared with 2854.5 million yuan in the same period of 2019.
Revenue sharing fees and content costs increased from RMB 1.951 billion in the same period of 2019 to RMB 28403.3 million (US $418.3 million) in the third quarter of 2020.
Bandwidth costs dropped from 286.3 million yuan in the same period of 2019 to 236.9 million yuan (US $34.9 million).
Gross profit increased 31.9% year-on-year to 2324.7 million yuan (US $342.4 million), compared with 1.762.7 million yuan in the same period in 2019. The gross profit margin was 37.0%, compared with 38.2% in the same period in 2019.
Operating profit
In the same period of 2020, the operating expenses were RMB 309.918 million (RMB 309.918 million) in the same period of 2020.
Among them, sales and marketing expenses increased to 1083 million yuan (159.5 million US dollars) from 957.3 million yuan in the same period of 2019.
R & D expenditure increased to 636 million yuan (US $93.7 million) from 538.1 million yuan in the same period of 2019.
Operating profit was 466.6 million yuan (US $68.7 million), compared with 96.4 million yuan in the same period in 2019. The operating margin was 7.4%, compared with 2.1% in the same period in 2019.
Under non US GAAP, operating profit was 825.8 million yuan (US $121.6 million), compared with 464.4 million yuan in the same period in 2019. The operating margin was 13.1%, compared with 10.1% in the same period in 2019.
Net profit
In the third quarter of 2020, the net profit from continuing operations attributable to the controlling interest of huanju group was 23003.2 million yuan (US $339.2 million), compared with 61.8 million yuan in the same period of 2019. The net profit margin was 36.6%, compared with 1.3% in the same period in 2019. This is mainly due to the income from the partial sale of Huya investment.
Under non US GAAP, the net profit from continuing operations attributable to the controlling interest of huanju group was 809.4 million yuan (US $119.2 million), compared with 493.4 million yuan in the same period in 2019. The net profit margin was 12.9%, compared with 10.7% in the same period in 2019.
Net income per ads
In the third quarter of 2020, the net profit from continuing operations per ads was 25.92 yuan (US $3.82), compared with 0.56 yuan in the same period of 2019.
Under non-U.S. general accounting standards, the net profit from continuing operations per ads is 8.89 yuan (US $1.31), compared with 5.60 yuan in the same period in 2019.
Balance sheet and cash flow
As of September 30, 2020, huanju group had 24.469.7 billion yuan (US $3.604 billion) in cash and cash equivalents, restricted cash and cash equivalents, restricted short-term deposits and short-term investments. In the third quarter of 2020, cash flow from operating activities was 1 029.9 million yuan (US $151.7 million).
Recent developments:
On November 16, 2020, huanju group and Baidu signed a final binding agreement, in which Baidu wholly acquired huanju group’s domestic live broadcasting business (i.e. “YY live broadcast”), with a total transaction amount of about US $3.6 billion. The transaction is expected to be completed in the first half of 2021.
Teleconferencing:
The management team of huanju group will hold a financial report teleconference at 9:00 p.m. on November 16, 2020 (10:00 a.m. Beijing time) on November 16, 2020 to interpret the financial results.
Due to the impact of the epidemic, it is not possible to provide operator assisted teleconference. All participants must use the links provided below to complete online registration before the teleconference starts. After registration, each participant will receive a set of dial in number, password and registrant ID by email.

The registration link is: http://apac.directeventreg.com/registration/event/8576720 , meeting ID:.
In addition, huanju group website investor relations channel http://ir.yy.com/ The conference call will be broadcast live and recorded.