Huanju Group’s second-quarter net profit reached US$51.5 million, with a steady growth in profitabilityFly into the homes of ordinary people
Xinmin Evening News (Reporter Jin Zhigang) On August 30, 2022, Beijing time, Huanju Group (NASDAQ: YY) released its financial report for the second quarter of 2022. In the second quarter, Huanju achieved revenue of $596.1 million and BIGO revenue of $502.6 million. Not considering the divested YY Live business, under non-GAAP, in the second quarter, the group’s net profit was US$51.5 million, with a net profit margin of 8.6% (net loss rate in the same period last year was 0.1%); the BIGO segment’s net profit was US$86.3 million, Net profit margin was 17.2% (3.3% for the same period last year). The group recorded positive operating net cash flow of US$61.7 million.
Li Xueling, Chairman and CEO of Huanju, said: “In the second quarter, starting from user value, we continued to focus on product function innovation and refined local operations, integrated the latest technology to innovate user interaction methods, and used the building of interest communities to further Improve the efficiency and quality of users’ online social networking. Benefiting from this, the user scale of Bigo Live has achieved good growth, and the social activity of users of other product lines has also increased. In addition, in the second quarter, our profitability level Steady growth has also been maintained, underscoring our improved operational efficiency and enhanced business resilience.”
Among Huanju’s products, Bigo Live continues to localize and cultivate the content ecology, and has launched a series of product function iterations. Driven by product innovation and localized operations, Bigo Live users maintained a strong growth trend. In the second quarter, MAU increased by 10.6% year-on-year to 32.6 million; among them, Southeast Asia and other regions grew by 18.6% year-on-year; Europe increased by 8.7% year-on-year.
In June, Likee launched an interest community (Loop) in some regions of Europe and the United States to facilitate the aggregation of fans with the same points of interest in the community and improve the quality and efficiency of social interaction. Shortly following its launch, Loop received enthusiastic feedback from users. For example, users of the two-dimensional animation community have contributed more than 6 million video content to the community, and the proportion of users who follow each other in the community exceeds 50%. Loop has further enhanced the activity and stickiness of the Likee community. In the second quarter, the global per capita usage time of Likee increased by 10.2% month-on-month, and the per capita usage time of the Loop online area increased by 22.7% month-on-month.
In addition, in the second quarter, Hago’s live broadcast revenue and paid users both increased, live broadcast revenue increased by 7.1% year-on-year, and the number of paid users increased by 12.8% year-on-year. This quarter, Hago focused on creating a 3D Hago Space virtual reality social interaction scene, creating a more diverse and immersive social experience for users.
In terms of shareholder feedback, Huanju added $12.1 million in stock repurchases in the second quarter. In 2021, Huanju has added a total of US$1.2 billion in repurchase quotas. As of the second quarter of 2022, a cumulative repurchase of US$327.9 million has been completed. Huanju continued to promote share repurchase, demonstrating the company’s confidence in its long-term future development.
Editor: Fang Hao
