On Tuesday, Huya’s stock surges (NYSE: HUYA), a Chinese game live streaming platform, saw its stock rise by 10.5% during pre-market trading. The increase followed the release of second-quarter earnings that exceeded analyst expectations.
Huya’s Stock Surges
Huya’s stock surges reported adjusted earnings per share of RMB 0.47 ($0.06), which surpassed the consensus estimate of RMB 0.43. Revenue came in at RMB 1.54 billion ($212.1 million), slightly below analysts’ expectations of RMB 1.56 billion. Although revenue declined by 16.1% year-over-year, it grew by 2.5% from the previous quarter. This growth was driven by the company’s game-related services, advertising, and other businesses, which saw a 152.7% year-over-year increase, reaching RMB 308.5 million.
Strategic Growth and User Engagement
Junhong Huang, Acting Co-Chief Executive Officer, emphasized the company’s efforts to expand its presence in the game industry. Huya’s average mobile monthly active users increased slightly to 83.5 million in Q2, up from 82.9 million a year ago. This growth resulted from successful e-sports events organized by Huya.
Future Plans: Dividend and Share Repurchase Program
Huya announced a special cash dividend of $1.08 per ADS, totaling approximately $250 million. The company also extended its $100 million share repurchase program through March 2025, showing a strong commitment to returning value to shareholders.
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