HUYA Inc. Q4 FY2025 earnings call

2025 was a record year. In the fourth quarter, total net revenues grew 16% to RMB 1.74 billion, highest in last 10 quarters. Live streaming business stable. Game-related services, advertising, etc. grew 59% y-o-y. Full year total net revenues reached RMB 6.5 billion, up 7% y-o-y. Successful launch of Goose Goose Duck Mobile demonstrating content-driven publishing strategy. In esports ecosystem, offered close to 100 licensed tournaments and around 40 self-produced tournaments and variety shows in Q4. Made progress in AI-powered live streaming, integrated AI host into esports programs. Focused on improving product experiences and strengthening content ecosystem overseas.

In the fourth quarter, total net revenues grew by 16% to RMB 1.74 billion. Live streaming revenues were RMB 1.15 billion, up 2% year-over-year. Game-related services, advertising, and other revenues were RMB 593 million, up 59% year-over-year. For the full year 2025, total net revenues were RMB 6.5 billion, up 7% year-over-year. Live streaming revenues were RMB 4.59 billion, and game-related services, advertising and other revenues were RMB 1.91 billion.

Will continue to enhance social features and build stronger community. Expect more monetization with major game content update later this year. Confident in publishing pipeline with multiple new titles this year. Will continue to expand customized rights offerings, joint marketing and localized partnerships across more top tier titles.

Profit fluctuation mainly driven by a RMB 66 million provision related to a 2021 streamer arrangement and an impairment loss of investments of RMB 81 million. These are non-cash accounting adjustments based on management's evaluation, not reflecting core net profit trend, but company will perform regular impairment review.

Q: About the supply chain and cut-off of investment as main reasons for profit fluctuation, share specific structure of projects and reasons behind and future trend.

A: Two main factors, one related to 2021 streamer contract arrangement with RMB 66 million provision, another related to investment impairment of RMB 81 million due to weak performance of invested companies. These are one-time effects, company conducts regular evaluation of long-term investment and no other large-scale assets need improvement currently.

Q: Status of Goose Goose Duck's DAU, ARPU and 2026 KPIs and lifecycle extension strategy.

A: DAU has been high and stable, expect DAU jump in summer with game events and updates. Monetization conservative now, but content updates drive ARPU growth. Lifecycle extension focuses on rapid content updates, launching WeChat mini game version, building UGC ecosystem.

Q: Progress of AI in live streaming, game tools, etc.

A: AI live streaming channels contribute nearly 10% of DAU, outperform peers. AI game tools like Delta Force map tool launched, with real-time AI-driven navigation coming. Developing AI hardware and interactive products.

Q: Game release strategy, pipeline and revenue contribution.

A: Insist on content-driven strategy, have multiple mini games and mobile games in pipeline with strong content appeal. Game publishing seen as important growth driver for revenue mix.

Q: Future gross profit margin trend.

A: Q4 2025 gross margin improved by 2.7% y-o-y, driven by high-margin advertising and rapid growth of in-game item business. Future, with growth of high margin businesses and operating leverage improvement, expect continued gross margin improvement.

Q: Game virtual item sales progress.

A: In-game item sales revenue grew over 200% y-o-y. Achieved milestone in exclusive rights for Wang Zhaoyun's FMVP scheme in Honor of Kings. Optimizing channel structure and expanding cooperation with game developers.