YY Inc. (NASDAQ:YY) Q2 2018 Earnings Conference Call Transcript
Aug 14, 2018 • 09:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to YY Incorporated Second Quarter 2018 Earnings Call. At this time, all the participants are in a listen-only mode. After the managements prepared remarks, we will have a question-and-answer session. I must advise you that this conference is being recorded today, Tuesday August 14th, 2018.
I'd now like to hand the conference over to your speaker host today Mr. Matthew Zhao, IR Director of YY. Thank you. Please go ahead.
Thank you, operator. Good morning, and good evening, everyone. Welcome to YY Second Quarter 2018 Earnings Conference Call. Joining us today are Mr. David Xueling Li, Chairman and acting CEO; Mr. Bing Jin, CFO; and Ms. Ting Li, COO of YY. For today's call, management will first provide a review of the quarter and then we will conduct a Q&A session.
The second quarter 2018 financial result and webcast of this conference call are available at ir.yy.com. A replay of this call will also be available on our website in a few hours.
(Forward-Looking Cautionary Statements)
Finally, please note that, unless otherwise stated all figures mentioned during this conference call are in renminbi.
I will now turn the call over to Mr. David Xueling Li, our Chairman and acting CEO. Please go ahead, sir.
Thank you, Matthew. Hello, everyone. Welcome to our second quarter 2018 earnings conference call. This is Bing Jin, CFO of YY. I will now speak on behalf of our Chairman and acting CEO, Mr. David Xueling Li. We once again sustained our strong growth structurally and delivered a robust quarter. Our total revenues increased by 44.6% year-over-year to RMB3.77 billion, which exceeded the high end of our previous guidance. Revenues from our live streaming business grew by 50% year-over-year to RMB3.56 billion and remain the primary driving force of our growth in the second quarter.
Our continued growth momentum in YY Live demonstrates our achievements in three areas; in various traffic acquisition, continuous product advancement and AI-backed technology enhancement. First, during the second quarter, we continued our unwavering commitment towards defining innovative measures to increase our traffic. One such measure is to promote our host, not only on our own YY Live platform but also through other social media or short-form video platforms, and then channel their fan base back into our ecosystem. A prime example is how we have boosted one of our top host called Modern Brother, Modern Chung Di (ph) to stardom and then capitalized on their popularity.
Recognizing that short-form video platforms are flourishing rapidly in China, we have leveraged their traffic to help Modern Brother multiply their fan base. Once Modern Brother became an online phenomenon in China from the short-form video content, we then actively connected the increasing number of loyal followers back on to our YY Live platform to enjoy live streaming performance and real time interaction with the celebrity. Going forward, we will replicate the model into promoting other hosts. We will also continue exploring new and innovative ways