Earnings Review and Free Research Report: YY’s Revenue Surged 31.7%; Net Income per ADS Rocketed 67.2%

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on YY Inc. (NASDAQ: YY) (“Yy”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=YY, following the Company’s posting of its second quarter fiscal 2017 operating results on August 03, 2017. The social media Company topped the high-end of its revenue guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on YY. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

YY’s total net revenues increased by 31.7% to RMB2.61 billion (US$384.8 million) in Q2 2017 compared to RMB1.98 billion in Q2 2016, primarily driven by the 42.9% y-o-y increase in its live streaming revenues which reached RMB2.37 billion (US$350.1 million) in the reported quarter compared with RMB1.66 billion in the prior year’s same quarter. Live streaming revenues from YY Live segment were RMB1.93 billion (US$284.9 million) and from its Huya segment revenues were RMB441.8 million (US$65.2 million) in Q2 2017.

For Q2 2017, YY’s cost of revenues advanced 29.4% to RMB1.56 billion (US$230.6 million) compared to RMB1.21 billion in Q2 2016, primarily attributable to an increase in revenue-sharing fees and content costs to RMB1.26 billion (US$185.7 million) in the reported quarter from RMB893.3 million in the year ago corresponding period. The Company’s bandwidth costs slightly increased to RMB165.3 million (US$24.4 million) in Q2 2017 from RMB150.7 million in Q2 2016, primarily reflecting the continued user base expansion and video quality improvements.

YY’s gross profit surged by 35.4% to RMB1.05 billion (US$154.2 million) in Q2 2017 from RMB772.4 million in Q2 2016. The Company’s gross margin improved to 40.1% in the reported quarter from 39.0% in the prior year’s comparable quarter.

For Q2 2017, YY’s operating income soared 42.6% to RMB599.4 million (US$88.4 million) from RMB420.4 million in Q2 2016. The Company’s operating margin expanded to 23.0% in the reported quarter compared to 21.2% in the prior year’s same quarter. YY’s non-GAAP operating income rose 34.8% to RMB622.8 million (US$91.9 million) in Q2 2017 from RMB461.9 million in Q2 2016, while non-GAAP operating margin advanced 23.9% in Q2 2017 from 23.3% in Q2 2016.

Net income attributable to YY Inc. surged 67.1% to RMB573.7 million (US$84.6 million) in Q2 2017 from RMB343.3 million in Q2 2016. Non-GAAP net income attributable to YY Inc. rose 55.2% to RMB597.2 million (US$88.1 million) from RMB384.8 million in the prior year’s same quarter.

YY’s diluted net income per ADS soared 67.2% to RMB9.98 (US$1.47) in Q2 2017 from RMB5.97 in Q2 2016. The Company’s non-GAAP diluted net income per ADS grew 56.2% to RMB10.39 (US$1.53) in the reported quarter from RMB6.65 in the year earlier corresponding quarter.

Revenue Details

During Q2 2017, YY’s revenues from online games were RMB154.0 million (US$22.7 million) compared to RMB188.3 million in Q2 2016. The Company’s revenues from membership were RMB52.2 million (US$7.7 million) in the reported quarter compared to RMB72.1 million in the prior year’s comparable quarter.

Other revenues, mainly representing revenues from the Company’s online advertising revenues, were RMB29.4 million (US$4.3 million) in Q2 2017 compared to RMB59.4 million in Q2 2016.

Balance Sheet & Cash Flows

As of June 30, 2017, YY had cash and cash equivalents of RMB1.35 billion (US$199.0 million); short-term deposits of RMB1.89 billion (US$278.8 million); and restricted short-term deposits of RMB1.00 billion (US$147.5 million). For Q2 2017, the Company’s net cash from operating activities was RMB885.6 million (US$130.6 million).

Business Outlook

For Q3 2017, YY is forecasting net revenues in the range of RMB2.75 billion and RMB2.85 billion, representing y-o-y growth of approximately 31.6% to 36.4%.

Stock Performance

On Wednesday, August 23, 2017, the stock closed the trading session at $74.24, slightly climbing 0.13% from its previous closing price of $74.14. A total volume of 812.68 thousand shares have exchanged hands. YY Inc.’s stock price soared 1.67% in the last one month, 62.38% in the past six months, and 46.06% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 88.33%. The stock is trading at a PE ratio of 13.77 and currently has a market cap of $4.45 billion.

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