GUANGZHOU - Chinese game live streaming platform Huya Inc. (NYSE:HUYA) saw its shares jump 10.5% in premarket trading on Tuesday after reporting second quarter earnings that beat analyst expectations.
The company posted adjusted earnings per share of RMB0.47 ($0.06), surpassing the consensus estimate of RMB0.43. Revenue came in at RMB1.54 billion ($212.1 million), slightly below analysts' projections of RMB1.56 billion.
While revenue declined 16.1% YoY, it increased 2.5% sequentially from Q1. The company attributed this to growth in its game-related services, advertising and other businesses, which saw revenues surge 152.7% YoY to RMB308.5 million.
"Our strategic transformation initiatives to expand our game industry presence with more game-related services also continued to advance," said Junhong Huang, Acting Co-Chief Executive Officer.
Huya's average mobile monthly active users rose slightly to 83.5 million in Q2, up from 82.9 million a year ago. The company said this was driven by successful e-sports events it organized.
Looking ahead, Huya announced a special cash dividend of $1.08 per ADS, totaling approximately $250 million. It also extended its existing $100 million share repurchase program through March 2025.
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