HUYA Inc. Q2 FY2025 earnings call

• Leveraged cross-platform strategy with average 162 million monthly active users across platforms and distribution on third-party platforms like WeChat channels, Douyin, and Kuaishou.
• Game-related services, advertising, and other revenues grew significantly, now over 25% of total net revenues, with game-related services from RMB 122 million in Q2 2023 to RMB 414 million in Q2 2025.
• Strengthened e-sports content with over 100 licensed e-sports tournaments and over 40 in-house produced tournaments, including high-profile events like LoL Mid-Season Invitational and CS2 Austin major.
• Piloted content-led game publishing with Goddess of Victory: Nikke and actively pursuing more publishing partnerships.
• Overseas initiatives gaining momentum with tens of millions of monthly active users internationally, focusing on FPS and mobile genres.
• AI embedded in operations, with initiatives like AI agent Hu Xiao Ai for e-sports streams and AI-powered virtual live streamers.

Live streaming revenues for Q2 2025 were RMB 1.15 billion, accounting for 74% of total net revenues. Game-related services, advertising and other revenues were RMB 414 million, contributing over 26.4% of total net revenues. Game-related services, advertising and other revenues grew from RMB 122 million in Q2 2023 to RMB 414 million in Q2 2025.

• Total net revenues expected to grow in the second half of 2025.
• Non-GAAP operating profit expected to improve meaningfully for the full year 2025 compared to 2024.
• Interest income in the second half expected to be significantly lower due to lower cash balance from shareholder returns and market rate fluctuations.

Forward-looking statements involve inherent risks and uncertainties. Further information regarding risks and uncertainties is included in the company's latest annual report on Form 20-F and other public filings with the U.S. Securities and Exchange Commission.

Q: Can you share more updates on the game-related services business and outlook for the second half?

A: Continued expansion and deepening of collaborations with game companies, portfolio of joint-distributed games in domestic market over 300 titles, 90% year-over-year growth in in-game accessories sales, and strategic entry into game publishing with successful pilot for Goddess of Victory: Nikke.

Q: Feedback on the first e-Sports event for Delta Force?

A: In July, launched inaugural Delta Force Diamond Champions Summer Season with 24 leading domestic teams, showcasing 4K ultra-high definition, 120 FPS streaming, multiscreen viewing, and in-team voice chat for a premium interactive experience.

Q: Update on overseas business progress?

A: Overseas initiatives gaining momentum with tens of millions of monthly active users, building gamer communities and local marketing capabilities, particularly in FPS and mobile genres.

Q: Future plans on AI development, especially in live streaming and e-sports?

A: AI embedded in operations, with initiatives like AI agent Hu Xiao Ai for real-time commentary during e-sports streams and AI-powered virtual live streamers like Huya AI Superbot for new consumption opportunities.

Q: Outlook for live stream business and total revenue trend in 2025?

A: Live streaming revenue stabilized with slight Q-over-Q increase, total revenue back on growth trajectory driven by game-related services, advertising, etc., expecting total net revenues to grow in H2 2025, and non-GAAP operating profit to improve.