YY Inc. (NASDAQ:YY) Q3 2018 Earnings Conference Call - Final Transcript
Nov 12, 2018 • 09:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to YY Incorporated Third Quarter 2018 Earnings Call. At this time, all participants will be in a listen-only mode. After the management's prepared remarks, we will have a question-and-answer session. I must advise you that this conference is being recorded today, Tuesday, the 13th of November 2018.
I'd now like to hand the conference over to your speaker host today, Mr. Matthew Zhao, IR Director of YY. Thank you. Sir, please go ahead.
Thank you, operator. Good morning, and good evening, everyone. Welcome to YY's third quarter 2018 earnings conference call. Joining us today are Mr. Bing Jin, Chief Financial Officer of YY; and Ms. Ting Li, Chief Operating Officer 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 third quarter 2018 financial results 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 Ms. Bing Jin -- Mr. Bing Jin, CFO of YY, to provide you a business update on behalf of our Chairman and acting CEO, David Xueling Li. Then he will also go over the details of our financial results of the quarter. Please go ahead, sir.
Thank you, Matthew. Hello, everyone. Welcome to our third quarter 2018 earnings conference call.
Our total revenues increased by 32.6% year-over-year to RMB4.1 billion during the third quarter, exceeding the high end of our previous guidance range. Revenue from our live streaming business grew by 35.6% year-over-year to RMB3.89 billion. Revenue from Huya, our game live streaming subsidiary, grew by 118.8% year-over-year to RMB1.28 billion.
Today, we are very pleased to announce that we have entered into a strategic cooperation agreement with Xiaomi in late October. Under this arrangement, YY has the exclusive right to operate certain entertainment live streaming services on Xiaomi's primary live streaming platform, Xiaomi Live. This agreement will enable us to integrate both our high-quality live streaming content and extensive experience in live streaming operations into Xiaomi's ecosystem. We are confident that the cooperation will provide Xiaomi's users with a better experience in entertainment live streaming services and enable YY and Xiaomi to explore additional monetization opportunities together. Going forward, we will maintain our open approach to the development of multiplatform cooperation. By leveraging the user traffics of our partners, we will introduce more innovative live streaming services to the market, thus creating multiple benefits to all the parties involved.
During the third quarter, we continue to execute our growth strategies on three key areas: content enrichment and upgrades; product enhancement and overseas market exploration; and AI-backed technology enhancement. Improvements in these three areas translate into enhancement in both user growth and stickiness which, in turn, will create more