HUYA Inc. (NYSE:HUYA) Q1 2019 Earnings Conference Call Transcript

May 17, 2019 • 02:00 am ET

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HUYA Inc. (NYSE:HUYA) Q1 2019 Earnings Conference Call Transcript

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Executive
Rongjie Dong

achieved higher sequential growth than that of the PC end, contributing more than 80% of live streaming revenues, justifying our resource allocation and technology focus in this area. Additionally, we experienced higher MAU conversion rates to paying users at 5.4 million, up 57% year-over-year and up 11% quarter-over-quarter, mainly thanks to our mobile-end strength. E-sports remains a strategy -- strategic concentration as we further integrate ourselves across the ecosystem's value chain. We are making further positive strides in deepening relationships with key stakeholders as we build up our vibrant e-sports community, engaging with more industry players.

Talking about deepening industry relationships vertically, in the first quarter, we broadcasted over 80 e-sports tournaments with viewership of approximately 380 million covering all major events, such as LPL, LCK, KPL, HoK Champion Cup Winter Season and WESG Grand Final as compared with broadcasting 60 tournaments and generating 260 million viewership in the year ago period. It's also worth noting that our exclusively broadcasted LCK series alone hit viewership of 89 million in the quarter. In the spirit of mapping out the horizontal relationship within the e-sports matrix, we have recently signed Team WE and TOP and look forward to more teams who are producing exclusive and professional gaming content for Huya. We are also quite committed to self-organized tournament services by hosting over 20 events in quarter one. These self-organized tournaments generated viewership of over 63 million, among which Huya Destiny PUBG Solo Series and the Fifth Honor of Kings Guild Tournament each generated viewership of more than 10 million.

Through our dedicating to generating a broader range of diversified content, Huya has successively evolved its ecosystem to create more original and quality content targeted at our expanded cohort from hardcore gamers to the entire gaming population.

In the past 12 months, Huya's platform has expanded its content suppliers into a mix of user generated content or UGC, professionally generated content or PGC and the professional user generated content or PUGC from the original composition of major UGC and limited e-sports PGC. Meanwhile, we are leveraging our talent agency mechanism, especially the platinum talent agencies to produce high-quality PUGC efficiently. Platinum talent agencies are recognized as capable of managing large pools of broadcasters and contributing to constant streaming hours upon thorough and ongoing assessment of their quality by us. The number of platinum agencies increased from approximately 1,000 in 2017 to over 1,500 by the end of 2018. As a marketplace for content producers, we strategically provide platinum talent agencies with additional resources to promote and develop their broadcasters, while we also set some incentive measures for top earning platinum agencies.

Platinum talent agencies are playing a key role in producing both gaming and the non-gaming content, since we have been seeing the outcome from our efforts in providing them with more foreseeable diversification guidelines based on our data mining and operation experiences. For example, as are sharing some overlapping cohorts with gaming content, both outdoor activities and animation themed streaming have also