Huya's Fourth Quarter Loss Exceeds Expectations, Stock Price Declines

robot
Abstract generation in progress

Investing.com - HUYA Inc. (NYSE: HUYA) reported its Q4 earnings on Tuesday, showing a loss that exceeded analyst expectations. The stock fell 4.6% after the earnings release.

The gaming-related entertainment service provider reported an adjusted loss of RMB 0.04 per ADS, compared to the analyst consensus of a RMB 0.20 profit per ADS.

Revenue for the quarter reached RMB 1.74 billion ($248.6 million), slightly above the market expectation of RMB 1.73 billion, representing a 16.2% year-over-year increase from RMB 1.5 billion last year. Revenue growth was mainly driven by gaming-related services, advertising, and other income, which surged 59.4% year-over-year to RMB 592.5 million.

The company’s Q4 results included a one-time accounting provision of RMB 66 million related to receivables from a streamer arrangement in 2021, which had a significant impact on operating performance.

General and administrative expenses increased 55.4% year-over-year to RMB 126 million, primarily due to this provision.

Co-CEO and CFO Peng Lei stated, “Our Q4 results include a one-time accounting provision, which had a significant impact on our reported operating performance and resulted in an operating loss for the quarter.”

For fiscal year 2025, HUYA announced total net revenue of RMB 6.5 billion, a 7.0% increase from RMB 6.08 billion in 2024. The company’s full-year adjusted net profit was RMB 99.5 million ($14.2 million), compared to RMB 268.8 million in 2024.

The company’s board approved a special cash dividend of $0.135 per ADS for 2026, expected to be paid around June 30, 2026.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin