Free Research Report as YY's Revenues Surged 48%; Earnings Soared 59%

LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors.com has just released a free earnings report on YY Inc. (YY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=YY. YY Inc. reported its third quarter fiscal 2017 operating results on November 14, 2017. The Chinese leading live streaming social media platform outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter.

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Earnings Highlights and Summary

For the three months ended September 30, 2017, YY's net revenues surged 48.0% to RMB3.09 billion (US$464.8 million) from RMB2.09 billion in Q3 2016. The growth was primarily attributable to the significant increase of the Company's live streaming revenues, which surged by 60.4% to RMB2.87 billion on a y-o-y basis. YY's revenue topped analysts' estimates by $41.98 million.

During Q3 2017, YY's cost of revenues increased by 48.2% to RMB1.89 billion (US$284.0 million) compared to RMB1.28 billion in Q3 2016, primarily attributable to an increase in revenue-sharing fees and content costs to RMB1.60 billion (US$241.2 million) in the reported quarter from RMB967.4 million in the year ago same period. The increase in revenue-sharing fees and content costs paid to performers, guilds and content providers was in-line with the increase in revenues and was primarily due to the higher level of user engagement and spending driven by promotional activities.

YY's bandwidth costs increased to RMB160.5 million (US$24.1 million) in Q3 2017 from RMB149.2 million in Q3 2016, primarily reflecting continued user base expansion and video quality improvements, but largely offset by the Company's improved efficiency and pricing terms.

For Q3 2017, YY's gross profit advanced 47.6% to RMB1.20 billion (US$180.8 million) versus RMB814.8 million in Q3 2016. The Company's gross margin was 38.9% in the reported quarter compared to 39.0% in the year earlier same quarter

YY's operating income advanced 39.9% to RMB661.4 million (US$99.4 million) in the reported quarter from RMB472.9 million in the prior year's corresponding quarter. The Company's operating margin in Q3 2017 was 21.4% compared to 22.6% in Q3 2016. YY's non-GAAP operating income grew 30.7% to RMB664.5 million (US$99.9 million) in Q3 2017 from RMB508.4 million in Q3 2016. The Company's non-GAAP operating margin was 21.5% in the reported quarter versus 24.3% in the year earlier same quarter.

During Q3 2017, net income attributable to YY soared 59.0% to RMB636.0 million (US$95.6 million) from RMB400.0 million in Q3 2016. The Company's diluted net income per ADS increased by 52.3% to RMB10.51 (US$1.58) in the reported quarter versus RMB6.90 in the corresponding period of 2016.

For Q3 2017, non-GAAP net income attributable to YY surged 46.7% to RMB639.1 million (US$96.1 million) from RMB435.6 million in Q3 2016. The Company's non-GAAP diluted net income per ADS advanced 41.2% to RMB10.56 (US$1.59) in the reported quarter versus RMB7.48 in the prior year's comparable quarter. YY's earnings beat Wall Street's estimates by $0.14 per share.

Operating Results

During Q3 2017, the Company's live streaming revenues from the YY Live segment were RMB2.32 billion (US$348.6 million), while the Huya segment saw revenues at RMB552.4 million (US$83.0 million) in the reported quarter.

For Q3 2017, YY's revenues from online games totaled RMB122.0 million (US$18.3 million) compared to RMB149.5 million in Q3 2016. The Company's revenues from membership were RMB49.5 million (US$7.4 million) in the reported quarter compared to RMB68.8 million in the corresponding period of 2016.

During Q3 2017, YY's other revenues, mainly representing revenues from the Company's online advertising revenues were RMB49.2 million (US$7.4 million) compared to RMB81.1 million in Q3 2016. Declines in online gaming, membership, and other revenues mainly reflected the Company's continued strategic shift towards its live streaming business.

Cash Matters

As of September 30, 2017, YY had cash and cash equivalents of RMB1.13 billion (US$169.7 million), short-term deposits of RMB6.47 billion (US$973.1 million), and restricted short-term deposits of RMB1.00 billion (US$150.3 million). For the reported quarter, YY's net cash from operating activities was RMB1.05 billion (US$157.1 million).

Business Outlook

For the fourth quarter of 2017, YY expects net revenues to be in the range of RMB3.4 billion and RMB3.5 billion, representing a y-o-y growth of 36.5% to 40.6%.

Stock Performance Snapshot

December 26, 2017 - At Tuesday's closing bell, YY Inc.'s stock marginally fell 0.65%, ending the trading session at $113.85.

Volume traded for the day: 395.78 thousand shares.

Stock performance in the last three-month - up 34.86%; previous six-month period - up 100.65%; past twelve-month period - up 174.01%; and year-to-date - up 188.81%

After yesterday's close, YY Inc.'s market cap was at $7.24 billion.

Price to Earnings (P/E) ratio was at 18.98.

The stock is part of the Technology sector, categorized under the Internet Information Providers industry.

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