YY Inc. (NASDAQ:YY) Q3 2019 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 09:00 pm ET
the third quarter was RMB160.3 million, compared to RMB610.9 million in the prior year period.
Operating margin for the third quarter was 2.3% compared to 14.9% in the prior year period, primarily due to the decrease in gross margin, the impact of depreciation and amortization related to Bigo consolidation and other overseas expansion initiatives. Non-GAAP operating income, which excludes share-based compensation expense, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, was RMB611.4 million in the third quarter, compared to RMB774.2 million in the prior year period.
Non-GAAP operating margin for the third quarter was 8.9% compared to 18.9% in the prior-year period. GAAP net income attributable to controlling interest of YY for the third quarter of 2019 was RMB109.9 million, compared to RMB650.7 million in the prior year period.
Non-GAAP net income attributable to the controlling interest of YY was RMB574.1 million compared to RMB787 million in the prior period. Non-GAAP net margin in the third quarter of 2019 was 8.3% compared to 19.2% in the prior period. Diluted net income per ADS in the third quarter of 2019 was RMB1.11 compared to RMB10.01 in the prior year period. Non-GAAP diluted net income per ADS was RMB6.42 compared to RMB12.07 in the prior year period.
Looking forward to the fourth quarter of 2019, we expect our net revenues to be between RMB7.32 billion and RMB7.52 billion, representing a year-over-year increase of 57.7% to 62%. This forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change. That concludes our prepared remarks.
Operator, we'd now like to open up the call to questions.