Huya.com exhibits at China Beijing International Audiovisual Conference on November 19, 2020. Photo: CFP

Chinese leading live game streaming platforms registered fast growth in the past year, according to the latest financial data revealed on Tuesday, showing the resilience of the country's digital economy amid the pandemic. 

Huya Inc. announced on Tuesday its preliminary financial results for the fourth quarter ending on December 31, 2020. The company saw its total net revenue for the period increase by 21.2 percent to 2.99 billion yuan ($458.3 million), from 2.47 billion yuan for the same period of 2019.

Average monthly active users (MAUs) in the fourth quarter of 2020 reached 178.5 million, an increase of 18.8 percent from 150.2 million in the fourth quarter of 2019. Total net revenue in fiscal year 2020 increased by 30.3 percent to 10.91 billion yuan, from 8.37 billion yuan in the previous year.

Douyu International Holdings Ltd, another leading live game streaming platform in China, also announced on Tuesday its early financial results for the year 2020, which show a growth of 10 percent in total net revenue in the fourth quarter of 2020 to 2.27 billion yuan, an increase from the 2.06 billion in the same period of 2019.

The company said its average MAUs in the fourth quarter of 2020 increased by 5.2 percent to 174.4 million, from 165.8 million in the same period of 2019.

Huya attributed the growth to the rise in the number of paying users and the increase in revenue per paying user, both of which have expanded year-over-year.

We believe our enhanced monetization capability sets a solid foundation for us to reinvest into the business and strengthen our future, Liu Xiaozheng, CFO of Huya said at the earnings call on Tuesday. 

Huya data showed that paying users increased by 18 percent year-over-year to 6 million in the fourth quarter. Notably, around 80 percent of their paying users connect through mobile devices and contributed to more than 85 percent of their live streaming revenue this quarter. This result further endorsed their mobile strategy focus as they continue to allocate resources to grow mobile user base.

Huya announced a potential merger with Douyu in October last year and the company has made relevant filings with US Securities and Exchange Commission. 

As negotiations continue with Douyu, Dong Rongjie, CEO of Huya, said on Tuesday that they have voluntarily submitted the declaration of concentration of undertaking with the State Administration for Market Regulation of China. Currently, the review is still in the process.

Tencent is Huya's biggest shareholder with 36.9 percent and also owns over a third of Douyu, with both firms listed in the US, and worth a combined $10 billion by market value, according to Reuters. 

Global Times