11 consecutive quarters to achieve profits, tiger teeth by Tencent urge marriage is “disaster” or “blessing”?

After the betta, on August 11, before the U.S. stock market, another major live broadcast platform, Huya, also released its second quarter earnings report in 2020. The night before the financial report was announced, Huya announced that its board of directors had received a preliminary non binding proposal from Tencent, suggesting that douyu and Huya should enter into a share exchange and merger agreement. At the same time, happy times also announced the transfer of 30 million shares of Huya common stock with a total price of $810 million to Tencent, which seems to be sending signals to the outside world about the merger of the two. However, after the release of the news, the stock prices of the two companies have fallen sharply. At the end of the day, douyu fell 8.51% and Huya live dropped 9.83%. After the announcement of the financial report, however, it stimulated the share price of Huya to rise slightly. After the day’s trading, the share price continued to rise by 0.79%, and now it is at $24.25, which shows the positive side of the financial report to a certain extent. < / P > < p > – total revenue increased by 34.2% year-on-year to RMB 2.697 billion, which was the ninth consecutive quarter since its listing that exceeded the management’s expectation; < / P > < p > 0.05- The net profit attributable to Huya was RMB 227 million under US accounting standards, an increase of 86.2% compared with RMB 122 million in the same period of 2019; the net profit attributable to Huya under non US GAAP was RMB 351 million, an increase of 106.0% compared with RMB 170 million in the same period of 2019, achieving profits for 11 consecutive quarters; < / P > < p > 0.05- In terms of domestic user data, in the second quarter, Huya live Mau and mobile Mau were 168.5 million and 75.6 million respectively, with year-on-year growth of 17.1% and 35.2% respectively, setting a new record. < / P > < p > it is not difficult to see that the two core data indicators still continue the high growth posture of Huya. As one of the final winners of the live broadcast war, tiger tooth’s name in the industry has no need to say much. In the context of the continuous epidemic this year, although it has affected the development of some offline E-sports events, the housing economy has also become an important factor in the growth of the number of users of major live broadcast platforms. This is also one of the important reasons why Huya can continue to maintain high growth in the background of the bad environment. < / P > < p > at present, although Tencent’s promotion of the merger between Huya and douyu is in full swing, Huya has sent an internal letter today saying that it has not made any decision and will evaluate it carefully. This means that the duel between Tiger tooth and fighting fish is still not over. So, combined with the current industry situation and focusing on the second quarter financial report of Huya, what is the future trend of Huya? < p > < p > after the first quarter of this year, the number of monthly active users of Huya mobile terminal increased by 38.6% year-on-year to 53.9 million, a record high. In the second quarter, the number of monthly active users of the mobile terminal reached 55.9 million. < / P > < p > it is not difficult to understand the continuous growth of monthly active users of Huya mobile terminal. After the education of the market caused by the epidemic in the first quarter, the public also paid more attention to the internet live broadcasting platform, but it was the epidemic factors. Moreover, the development of live game platform so far, it seems that it is difficult to escape the pressure of the flow ceiling. < / P > < p > as early as the first half of 2019, questmobile released that the monthly active device scale of China Mobile Internet reached the top of 1.14 billion, and the demographic dividend peaked. < p > < p > what is more noteworthy is that the total Mau of Huya has actually shown a slow growth trend. Compared with the same period of last year, the number of active users in the same period of the same year increased from 4.911.47 billion to 4.911.17 billion in the same period of last year, and the average number of users increased from 4.911.47 billion in the same period of last year to 4.317 billion in the same period of the same year. < / P > < p > from this series of data, it is not difficult to see that the number of monthly active users of Huya has entered the downstream channel. Even though the number of mobile end users has increased beyond the epidemic, it is only 75.6 million, which accounts for too small a proportion of 168.5 million Maus, and its commercial liquidity is limited. < / P > < p > at present, the live broadcast platform, whether it is the e-commerce live platform or the short video platform, has become an indisputable fact, and the game live broadcast platform is no exception. < / P > < p > the gap between douyu and Huya is narrowing: according to the financial report of the second quarter of douyu, the net revenue was 2.508.2 billion yuan, up 33.9% over the same period of last year; the net profit was 319.3 million yuan, 12.76 times higher than that of the same period of last year; the difference was not particularly large compared with the revenue of 2.697 billion yuan and the net profit of 351 million yuan in the second quarter of Huya. < / P > < p > it may be said that a single quarter does not seem convincing, but from the comparison of revenue and net profit in the first quarter of this year, it can also be verified. In the first quarter, Huya’s revenue was 2.412 billion yuan, up 47.8% year-on-year, and its net profit was 171 million yuan, up 169.8% year-on-year. The income of Betta was 2.278 billion yuan, up 53% year on year, and the net profit was 254.5 million yuan, with a year-on-year increase of 1298%. < / P > < p > although Huya is still ahead of the betta in terms of revenue, it is only 188 million yuan. It should be noted that in 2018, the annual revenue of Betta was 3.65 billion yuan, while that of Huya was 4.663 billion yuan, with a difference of nearly 1 billion yuan. It can be seen that the fighting fish has been pressing on the tiger teeth step by step. Kwai Kwai Kwai

has game advantages: the short video content of the fast platform is the entrance to attract live users. The relevant data show that the large number of users of the fast track coincides with the game player. Similarly, Tencent is an important investor, and the Kwai will hardly encounter the awkward problem of lacking game copyright. During the

2020 ChinaJoy, the quick release data showed that as of the end of May this year, Kwai Kwai Live Live mobile users exceeded 220 million, and the short live video games users exceeded 300 million. Compared with about 160 million Mau of Huya and Betta, the flow advantage is quite obvious. Although the overall advantage of fast play in live broadcast is not as good as the Kwai Yu and tiger teeth with first hand advantage, adequate traffic has become an important factor in the winter platform moat for the live broadcasting platform with traffic as core business. For Huya, the pressure is not great. < / P > < p > station B has made a big investment in the field of live game broadcasting. It not only bought the exclusive live broadcasting right of lol finals for three years with a large sum of money last year, but also began to sign a contract to introduce head anchor last year, such as Feng Timo. This year, it also signed an additional head anchor lex. Whether it is a live e-commerce platform or a live game platform, the importance of a well-known anchor to the platform is unnecessary. < / P > < p > and live broadcasting has shown an obvious growth trend in the overall revenue of station B. Chen Rui, chairman and CEO of station B, said in his first quarter financial report conference call that he was optimistic about the live broadcasting business of station B and expected to double in the next two or three years. Combined with the current layout of Kwai live broadcast, it may continue to be annotate.

tiktok invasion: in fact, tiktok is a huge flow pool with byte beating, and has great ambitions in the game area. It tries to eat and wear live games, game distribution, game operation and game production. Not only started to lay out the game field in 2018, but also directly set up the “oasis plan” in 2019, and began to develop self-developed heavy games. In March this year, it won the first game board number, battle girl Parkour. Tiktok, though

has not made any remarkable achievements in the field of live broadcasting, but with its advantages of short video content + live broadcast, the jitter can extend the live broadcast of games in the fields of tiktok racing and other fields, thus forming a new game content ecosystem, thereby increasing user stickiness. < / P > < p > in the second quarter, the revenue cost of Huya was 2.122 billion yuan, an increase of 26.7% compared with 1.675 billion yuan in the same period of last year; the R & D expenses were 179.9 million yuan, an increase of 70.6% compared with the same period of last year; the revenue cost of the first quarter was 1.937.1 billion yuan, an increase of 42.6% over the same period of last year. Although this year-on-year growth is slowing down, but combined with revenue growth, it is found that the revenue growth and revenue cost of Huya basically maintain the same trend, and the revenue growth rate of Huya has also been slowing down. Behind this, it reflects that Huya’s high income was actually obtained by burning money. < p > < p > on August 10, douyu and Huya both received non binding merger proposals from Tencent. At the same time, Tencent will spend $810 million from YY to buy 30 million shares of class B common shares of Huya. After the acquisition, Tencent will further enhance its control over Huya and its equity ratio will rise to 51%. Voting rights increased by 70.4%. In fact, Tencent will be the final winner after the combination of the two. Because Tencent, as the largest shareholder of both sides, can form a greater leading edge in the live game, and form a strategic synergy with Tencent’s game business with annual revenue of more than 100 billion yuan. < / P > < p > of course, this is also good for tiger teeth and bettas. Both sides may be able to take advantage of their own differentiation advantages in user attributes under the control of Tencent. < / P > < p > according to relevant data, in 2019, more than half of the users of tiger tooth are watching non game live broadcast. In the second quarter of 2019, the number of users watching the game live broadcast accounted for more than 80% of the total viewing amount of the platform. In the financial report of the first quarter of this year, the game Division also contributed about 80% of the viewing time. < / P > < p > from this differentiated data, it is not difficult to predict that after the merger, Betta may occupy a leading position in the field of live game broadcasting, because the operation of game traffic is obviously more important for Tencent. Of course, this is only a hypothesis. After all, tiger teeth and fighting fish have their own advantages, and the relevant operating data will continue to change. The second quarter financial report shows that the 168.5 million domestic Mau in Huya has achieved the first reverse surpassing of 165 million Betta Fish. However, it is worth noting that the strong entry of B stations and Kwai Fu operators with obvious advantages in user numbers and resources is still worth vigilance. < / P > < p > of course, from the perspective of the industry’s development prospects, the live game industry is indeed developing at a sustained high speed. According to the forecast of prospective research institute, from 2018 to 2022, the game live broadcasting industry will still maintain a growth rate of more than 13%, and by 2022, the market scale of game live broadcast will reach about 30 billion yuan. < / P > < p > at present, it is too early to conclude that tiger teeth will be a trend after the combination of Betta and tiger teeth. After all, judging from the past merger cases of the Internet industry, it has always been dominated by industry leaders, such as Youku, meituan, 58, etc. It seems that it is difficult to measure from a certain dimension who is the first in the game live platform. At present, it is certain that the merger of Huya and douyu will create a giant platform in the industry, and the specific direction of Huya in the future remains to be seen. Older posts →