China's HUYA Q1 revenue rises on in-game item sales, advertising collaborations

HUYA

12/05/2026 09:40

Overview

China game-related entertainment provider's Q1 revenue rose 14.6% yr/yr

Operating loss for Q1 narrowed compared to prior year

Revenue growth driven by in-game item sales and advertising collaborations

Outlook

Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

GAME-RELATED SERVICES GROWTH - Co said revenue growth was primarily driven by higher in-game item sales and advertising, attributed to deeper collaborations with game companies

NEW GAME LAUNCHES - Goose Goose Duck mobile gained traction in China, reaching Top 5 on the Apple App Store top-grossing games chart, supporting monetization potential

REVENUE MIX SHIFT - Increased contribution from higher-margin businesses led to gross margin expansion, per CFO Raymond Peng Lei

Company press release: ID:nPn5nkW5a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 1.73 bln
Q1 Net Income
-RMB 4.07 mln
Q1 Gross Profit
RMB 253.15 mln
Q1 Operating Expenses
-RMB 284.87 mln
Q1 Operating Income
-RMB 28.79 mln
Q1 Pretax Profit
-RMB 165,000


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for HUYA Inc is $3.55, about 8.2% above its May 11 closing price of $3.28

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 26 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)