What's Going On With Huya Stock Friday?
Portfolio Pulse from Anusuya Lahiri
Huya Inc (HUYA) and Tencent Music Entertainment Group (TME) saw double-digit declines in their social entertainment revenues, including live streaming, after eliminating certain features to curb potential illegal gambling activities. This move significantly impacted their quarterly revenues following the Chinese government's crackdown on online gambling activities. HUYA's live-streaming revenues accounted for 89% of its total sales of $1.3 billion in FY22, while TME's revenue from social entertainment services accounted for 56% of its revenue in FY22. Analysts anticipate that the crackdown could reduce 20% to 70% of live streaming revenue, depending on a platform's exposure to these features.
August 25, 2023 | 12:58 pm
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Huya Inc saw a significant decline in its social entertainment revenues, including live streaming, after eliminating certain features to curb potential illegal gambling activities. This move significantly impacted its quarterly revenues. HUYA's live-streaming revenues accounted for 89% of its total sales of $1.3 billion in FY22.
The elimination of certain features to curb illegal gambling activities has led to a significant decline in HUYA's social entertainment revenues. Given that live-streaming revenues accounted for a large portion of its total sales, this could negatively impact the company's financial performance in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Tencent Music Entertainment Group saw a significant decline in its social entertainment revenues, including live streaming, after eliminating certain features to curb potential illegal gambling activities. This move significantly impacted its quarterly revenues. TME's revenue from social entertainment services accounted for 56% of its revenue in FY22.
The elimination of certain features to curb illegal gambling activities has led to a significant decline in TME's social entertainment revenues. Given that these services accounted for a large portion of its total revenue, this could negatively impact the company's financial performance in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100