HUYA Inc. (NYSE:HUYA) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 08:00 pm ET

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HUYA Inc. (NYSE:HUYA) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Your first question is from Hillman Chan from Citigroup. Please ask.

Analyst
Hillman Chan

[Foreign Speech] Thank you for taking my question, and congrats on a solid quarter results and guidance. I have two questions. First one is on the competition from Kuaishou and ByteDance and how it would impact the game live streaming industry going forward?

And my second question is on Tencent expense on Kuaishou, Huya and Douyu, and how we should think about Tencent's strategy in one to two years, regarding the game live streaming industry? Thank you very much.

Executive
Rongjie Dong

[Foreign Speech] All right. I'll translate the question, first, I would like to talk about our comparison with ByteDance. To my half knowledge, I can say, Tencent has actually taken some actions against the ByteDance's use of their game titles in terms of licensing and copyrights. So we don't think ByteDance will create much of an influence over Huya live streaming. And also, we think the user base of Huya isn't really much overlapped with what is offered in ByteDance, since they are part of a [Indecipherable] short-video platforms.

Regarding the competition -- potential competition with Kuaishou, I confirm from a macro perspective, we remain optimistic in welcoming that Kuaishou is entering into the game live streaming industry and with this massive DAU currently. I think the move is going to release up the top filling for the industry in terms of the user base by introducing the mass audiences into this specific sector. And with Kuaishou, entering into this industry, we think by end of this year, the user base, the market size in terms of user base will likely to double by end of this year for game live streaming industry.

And probably you have known that user acquisition cost for short-video platforms like Kuaishou, it's all over already than inviting -- then the user is going to get through inviting top tier broadcasters. So with Kuaishou's entrance and we supposed that should be largely [Phonetic] user base, probably our acquisition process is going to be more efficient as well. And also, we have already seen that over the past few quarters, Kuaishou has already made money through video [Phonetic] live streaming in the showroom business. And we don't really only think game live streaming will create incremental revenue for them. So I hope that answers your question. Thank you.

Analyst
Hillman Chan

[Foreign Speech] For the Tencent's position in the competitive landscape of Huya and Douyu, we think from the perspective of Huya, what we can do is just to help Tencent regarding how to help maintain their position in the game industry as a whole.

Executive
Henry Dachuan Sha

Yeah. This is Henry. I'm here to accommodate one question. So actually, I think in considering the market dynamics and industry competitive landscape, I believe that now we are in the duopoly of the market, and also seeing a very fast growth stage. So I think it's too early to comment on this question.

Thank you, Hillman. I think that's all