YY Inc. (NASDAQ:YY) (“YY” or “the Company”), a leading live
streaming social media platform in China, today announced its
unaudited financial results for the first quarter of 2018.
First Quarter 2018 Highlights
- Net revenues increased by 43.3% to RMB3,248.9 million (US$518.0
million) from RMB2,267.0 million in the corresponding period of
2017.
- Net income attributable to YY was RMB444.1 million (US$70.8
million) compared to RMB543.2 million in the corresponding period
of 2017.
- Non-GAAP net income attributable to YY1 increased by 31.1% to
RMB699.9 million (US$111.6 million) from RMB533.9 million in the
corresponding period of 2017.
“We are delighted to start 2018 with robust growth
in the first quarter,” stated Mr. David Xueling Li, Chairman and
acting Chief Executive Officer of YY. “Our mobile live streaming
monthly active users (MAU) increased by 23.9% year over year to
77.6 million, and our total live streaming paying users increased
by 17.3% year over year to 6.9 million. As we continue to roll out
innovative functionalities such as Host Battalion in the latest
version of YY Live, we are further enhancing our user acquisition
and monetization capabilities. Meanwhile, the successful public
listing of our game live streaming subsidiary HUYA Inc. on the New
York Stock Exchange in May has ushered in a new era for the group
company. Together as a group company, we are confident that YY will
maintain and expand its leadership positions in both entertainment
live streaming and game live streaming markets in China. In
addition, we further invested US$272 million in the series D
preferred shares of Bigo Inc, a fast-growing global video-based
social media platform. YY is Bigo’s existing shareholder and has
become the largest shareholder of Bigo after the series D
financing. YY has also obtained a right, exercisable after the
first anniversary of the closing date, to purchase additional Bigo
shares at the then fair market price to exceed 50.1% of the voting
power in Bigo. We believe that the significant synergistic
relationship between YY Live and Bigo will further contribute
momentum to our expansion into the global market. ”
Mr. Bing Jin, Chief Financial Officer of YY,
further commented, “We are pleased to deliver another quarter with
strong financial results. During the quarter, our total net
revenues increased by 43.3% year over year to RMB3,248.9 million,
exceeding the high end of our previous guidance range. Our revenue
growth was mainly driven by the robust growth of our live streaming
revenues, which increased by 47.4% year over year to RMB3,032.0
million. In addition, our non-GAAP net income attributable to YY
increased by 31.1% year over year to RMB699.9 million in the first
quarter of 2018. Going forward, we will continue to innovate and
offer more engaging services to users in order to further grow our
market share and create more value for all of our
stakeholders.”
First Quarter 2018 Financial
Results
NET REVENUES Net revenues
increased by 43.3% to RMB3,248.9 million (US$518.0 million) in the
first quarter of 2018 from RMB2,267.0 million in the corresponding
period of 2017, primarily driven by an increase in live streaming
revenues. Live streaming revenues increased by 47.4% to RMB3,032.0
million (US$483.4 million) in the first quarter of 2018 from
RMB2,057.4 million in the corresponding period of 2017.
Starting from the first quarter of 2018, the
Company re-classified its revenues from online games, revenues from
memberships, and other revenues (which mainly represent revenues
from the Company’s online advertising revenues) to the category
“other revenues” in order to better reflect the Company’s continued
strategic shift towards its live streaming business.
Other revenues increased by 3.5% to RMB216.9
million (US$34.6 million) in the first quarter of 2018 from
RMB209.5 million in the corresponding period of 2017.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 46.4% to RMB2,015.8 million (US$321.4
million) in the first quarter of 2018 from RMB1,377.0 million in
the corresponding period of 2017, primarily attributable to an
increase in revenue-sharing fees and content costs to RMB1,621.0
million (US$258.4 million) in the first quarter of 2018 from
RMB1,035.3 million in the corresponding period of 2017.
Revenue-sharing fees and content costs paid to performers, guilds,
and content providers as a percentage of the live streaming
revenues increased year over year primarily because of the
Company’s efforts to strengthen its relationships with performers
and further enrich its live streaming content offerings. In
addition, bandwidth costs increased to RMB225.4 million (US$35.9
million) in the first quarter of 2018 from RMB188.9 million in the
corresponding period of 2017, primarily reflecting continued user
base expansion and live streaming quality improvements. Bandwidth
costs as a percentage of total revenues decreased year over year
partially because of the Company’s improved efficiency through
technological advances and better pricing terms resulting from its
economies of scale.
Gross profit increased by 38.6% to RMB1,233.1
million (US$196.6 million) in the first quarter of 2018 from
RMB890.0 million in the corresponding period of 2017. Gross margin
was 38.0% in the first quarter of 2018 compared to 39.3% in the
corresponding period of 2017.
OPERATING INCOMEOperating expenses
was RMB649.1 million (US$103.5 million) in the first quarter of
2018 compared to RMB330.8 million in the corresponding period of
2017.
Operating income was RMB596.4 million (US$95.1
million) in the first quarter of 2018 compared to RMB617.0 million
in the corresponding period of 2017. Operating margin was 18.4% in
the first quarter of 2018 compared to 27.2% in the corresponding
period of 2017, primarily due to the increase in sales and
marketing expenses, amounting to RMB147.1 million and the increase
in share-based compensation, amounting to RMB89.9 million.
Non-GAAP operating income2 increased by 20.6% to
RMB727.3 million (US$115.9 million) in the first quarter of 2018
from RMB603.3 million in the corresponding period of 2017. Non-GAAP
operating margin3 was 22.4% in the first quarter of 2018 compared
to 26.6% in the corresponding period of 2017.
NET INCOMENet income attributable
to YY Inc. was RMB444.1 million (US$70.8 million) in the first
quarter of 2018 compared to RMB543.2 million in the corresponding
period of 2017. Net income attributable to YY Inc. in the first
quarter of 2018 includes RMB426.5 million (US$68.0 million) of gain
on fair value change of investments and deemed dividend to
subsidiary's series A preferred shareholders related to HUYA Inc.’s
series B equity financing, which was a loss of RMB489.3 million
(US$78.0 million). Net margin was 13.7% in the first quarter of
2018 compared to 24.0% in the corresponding period of 2017.
Non-GAAP net income attributable to YY Inc.
increased by 31.1% to RMB699.9 million (US$111.6 million) from
RMB533.9 million in the corresponding period of 2017. Non-GAAP net
margin was 21.5% in the first quarter of 2018 compared to 23.5% in
the corresponding period of 2017.
NET INCOME PER ADSDiluted net
income per ADS4 was RMB6.86 (US$1.09) in the first quarter of 2018
compared to RMB9.25 in the corresponding period of 2017.
Non-GAAP diluted net income per ADS5 increased by
18.5% to RMB10.78 (US$1.72) in the first quarter of 2018 from
RMB9.10 in the corresponding period of 2017.
BALANCE SHEET AND CASH FLOWS As of
March 31, 2018, the Company had cash and cash equivalents of
RMB4,086.5 million (US$651.5 million) and short-term deposits of
RMB8,748.9 million (US$1,394.8 million). For the first quarter of
2018, net cash from operating activities was RMB780.3 million
(US$124.4 million).
SHARES OUTSTANDING As of March 31,
2018, the Company had a total of 1,263.9 million common shares, or
the equivalent of 63.2 million ADSs, outstanding.
Business OutlookFor the second
quarter of 2018, the Company expects net revenues to be between
RMB3.6 billion and RMB3.7 billion, representing a year-over-year
growth of 38.0% to 41.8%. In addition, the Company expects to have
a fair value loss on derivative liabilities, which is related to
preferred shares of HUYA Inc. amounting to approximately RMB2.3
billion due to an increase in HUYA Inc.’s enterprise value as
indicated by the price of its initial public offering, which will
cause a negative net income attributable to YY Inc. in the second
quarter of 2018. This forecast reflects the Company's current and
preliminary views on the market and operational conditions, which
are subject to change.
Recent DevelopmentsIn May 2018,
HUYA Inc., the Company’s majority-controlled subsidiary,
successfully completed its initial public offering of 17,250,000
American depositary shares ("ADSs") at a price of US$12.0 per ADS,
including 2,250,000 ADSs offered pursuant to the underwriters’ full
exercise of their over-allotment options. Each HUYA Inc. ADS
represents one Class A ordinary share of HUYA Inc.
In June 2018, the Company announced that it had
invested US$272 million in the series D preferred shares of Bigo
Inc. as the lead investor. YY is an existing shareholder of Bigo
and had become its largest shareholder after the series D
financing. In addition, YY had obtained a right, exercisable
after the first anniversary of the closing date, to purchase
additional Bigo shares at the then fair market price to exceed
50.1% of the voting power in Bigo.
The Company announced that it has appointed Mr.
Pengjun Lu as the Company’s Chief Technology Officer, effective on
May 28, 2018. With over 12 years of technology and management
experience, Mr. Lu brings to the Company a wealth of knowledge and
expertise in search technology, recommendation algorithm, computer
vision and speech related AI technologies. Prior to joining YY, Mr.
Lu served as the general manager in charge of search advertising
and chief architect in infrastructure team at Baidu from 2014 to
early 2018. From 2006 to 2014, Mr. Lu worked at Google, most
recently as a staff engineer in charge of Shanghai advertising
back-end team, and received the Google Founders Award for the QueST
project. Mr. Lu received a Master’s degree in computer
science and technology from Fudan University, and a Bachelor’s
degree in computer science and technology from Wuhan
University.
Conference Call InformationThe
Company will hold a conference call on June 5, 2018, at 9:00 pm
Eastern Time or June 6, 2018, at 9:00 am Beijing Time to discuss
the financial results. Participants may access the call by dialing
the following numbers:
United States:
+1-845-675-0438International:
+65-6713-5440China Domestic: 400-1200-654Hong
Kong: +852-3018-6776Conference ID:
#7090909
The replay will be accessible through June 13,
2018, by dialing the following numbers:
United States Toll Free:
+1-855-452-5696International: +61-2-9003-4211
Conference ID: #7090909
A live and archived webcast of the conference call
will also be available at the Company's investor relations website
at http://ir.yy.com/.
Exchange RateThis press release
contains translations of certain Renminbi amounts into U.S. dollars
at specified rates solely for the convenience of readers. Unless
otherwise noted, all translations from Renminbi to U.S. dollars, in
this press release, were made at a rate of RMB6.2726 to US$1.00,
the noon buying rate in effect on March 30, 2018 in the City of New
York for cable transfers in Renminbi per U.S. dollar as certified
for customs purposes by the Federal Reserve Bank of New York.
About YY Inc.YY Inc. (“YY” or the
“Company”) is a leading live streaming social media platform in
China. The Company’s highly engaged users contribute to a vibrant
social community by creating, sharing, and enjoying a vast range of
entertainment content and activities. YY enables users to interact
with each other in real time through online live media and offers
users a uniquely engaging and immersive entertainment experience.
YY Inc. was listed on the NASDAQ in November 2012.
Safe Harbor StatementThis
announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Among other things, the
business outlook and quotations from management in this
announcement, as well as YY's strategic and operational plans,
contain forward-looking statements. YY may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (“SEC”), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about YY’s beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: YY’s goals
and strategies; YY's future business development, results of
operations and financial condition; the expected growth of the
online communication social platform market in China; the
expectation regarding the rate at which to gain active users,
especially paying users; YY’s ability to monetize the user base;
fluctuations in general economic and business conditions in China
and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks is included in
YY’s filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and YY does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
Use of Non-GAAP Financial
MeasuresThe unaudited condensed consolidated financial
information is prepared in conformity with accounting principles
generally accepted in the United States of America (“U.S. GAAP”).
YY uses non-GAAP operating income, non-GAAP operating margin,
non-GAAP net income attributable to YY Inc.,
non-GAAP net margin, and basic and diluted non-GAAP net income per
ADS, which are non-GAAP financial measures. Non-GAAP operating
income is operating income excluding share-based compensation
expenses, impairment of goodwill and investments, and gain on
deconsolidation and disposal of subsidiary. Non-GAAP operating
margin is non-GAAP operating income as a percentage of net
revenues. Non-GAAP net income attributable to YY Inc. is net income
attributable to YY Inc. excluding share-based compensation
expenses, impairment of goodwill and investments, gain on
deconsolidation and disposal of subsidiary, gain on deemed disposal
and disposal of investments, gain on fair value change of
investments, fair value loss on derivative liabilities, deemed
dividend to subsidiary’s Series A preferred shareholders and income
tax effects of above non-GAAP reconciling items and adjustment for
non-GAAP reconciling items for the income attributable to
non-controlling interests. Non-GAAP net margin is non-GAAP net
income attributable to YY Inc. as a percentage of net revenues.
Basic and diluted non-GAAP net income per ADS is non-GAAP net
income attributable to YY Inc. divided by weighted average number
of ADS used in the calculation of basic and diluted net income per
ADS. The Company believes that separate analysis and exclusion of
the non-cash impact of above reconciling items adds clarity to the
constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It
uses the non-GAAP financial measure for planning, forecasting and
measuring results against the forecast. The Company believes that
non-GAAP financial measure is useful supplemental information for
investors and analysts to assess its operating performance without
the non-cash effect of (i) share-based compensation expenses, which
have been and will continue to be significant recurring expenses in
its business, (ii) impairment of goodwill and investments, gain on
deconsolidation and disposal of subsidiary, gain on deemed disposal
and disposal of investments, gain on fair value change of
investments, fair value loss on derivative liabilities, and deemed
dividend to subsidiary’s Series A preferred shareholders, which may
not be recurring in its business, (iii) income tax expenses and net
income (loss) attributable to non-controlling interest
shareholders, which are affected by above non-GAAP reconciling
items. However, the use of non-GAAP financial measures has material
limitations as an analytical tool. One of the limitations of using
non-GAAP financial measures is that they do not include all items
that impact the Company’s net income for the period. In addition,
because non-GAAP financial measures are not measured in the same
manner by all companies, they may not be comparable to other
similar titled measures used by other companies. In light of the
foregoing limitations, you should not consider non-GAAP financial
measure in isolation from or as an alternative to the financial
measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial
measures is not intended to be considered in isolation from, or as
a substitute for, the financial information prepared and presented
in accordance with U.S. GAAP. For more information on these
non-GAAP financial measures, please see the table captioned “YY
Inc. Reconciliations of GAAP and Non-GAAP Results” near the end of
this release.
Investor Relations ContactYY
Inc.Matthew ZhaoTel: +86 (20) 8212-0000Email: IR@YY.com
ICR, Inc. Jack WangTel: +1 (646) 915-1611Email:
IR@YY.com
____________________________
1 Non-GAAP net income attributable to YY Inc. is
a non-GAAP financial measure, which is defined as net income
attributable to YY Inc. excluding share-based compensation
expenses, impairment of goodwill and investment, gain on
deconsolidation and disposal of subsidiary, gain on deemed disposal
and disposal of investments (deemed disposal refers to dilution of
equity interest in equity-method investments), gain on fair value
change of investments, fair value loss on derivative liabilities,
deemed dividend to subsidiary’s Series A preferred shareholders and
income tax effects on above non-GAAP reconciling items and
adjustment for non-GAAP reconciling items for the income
attributable to non-controlling interests. Please refer to the
section titled “Reconciliation of GAAP and Non-GAAP Results” for
details.
2 Non-GAAP operating income is a non-GAAP financial
measure, which is defined as operating income excluding share-based
compensation expenses, impairment of goodwill and investments and
gain on deconsolidation and disposal of a subsidiary. Please refer
to the section titled "Reconciliation of GAAP and Non-GAAP Results"
for details.
3 Non-GAAP operating margin is a non-GAAP financial measure,
which is defined as non-GAAP operating income as a percentage of
net revenues. Please refer to the section titled "Reconciliation of
GAAP and Non-GAAP Results" for details.
4 ADS is American Depositary Share. Each ADS represents
twenty Class A common shares of the Company. Diluted net income per
ADS is net income attributable to YY Inc. divided by weighted
average number of diluted ADS.
5 Non-GAAP diluted net income per ADS is a non-GAAP
financial measure, which is defined as non-GAAP net income
attributable to YY Inc. divided by weighted average number of ADS
used in the calculation of diluted net income per ADS. Please refer
to the section titled "Reconciliation of GAAP and Non-GAAP Results"
for details).
|
|
YY INC. |
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS |
(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
December 31,2017 |
|
March31,2018 |
|
March31,2018 |
|
|
RMB |
|
RMB |
|
US$ |
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
2,617,432 |
|
4,086,517 |
|
651,487 |
Short-term deposits |
|
6,000,104 |
|
8,748,883 |
|
1,394,778 |
Restricted short-term deposits |
|
1,000,000 |
|
- |
|
- |
Short-term investment |
|
124,550 |
|
119,118 |
|
18,990 |
Accounts
receivable, net |
|
153,944 |
|
161,339 |
|
25,721 |
Inventory |
|
315 |
|
269 |
|
43 |
Amount
due from related parties |
|
11,190 |
|
13,355 |
|
2,129 |
Prepayments and other current assets |
|
221,939 |
|
770,111 |
|
122,773 |
|
|
|
|
|
|
|
Total current
assets |
|
10,129,474 |
|
13,899,592 |
|
2,215,921 |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Deferred
tax assets |
|
113,017 |
|
117,765 |
|
18,775 |
Investments |
|
1,153,019 |
|
1,247,317 |
|
198,852 |
Property
and equipment, net |
|
1,016,998 |
|
1,086,574 |
|
173,225 |
Land use
rights, net |
|
1,832,739 |
|
1,820,711 |
|
290,264 |
Intangible assets, net |
|
37,481 |
|
34,812 |
|
5,550 |
Goodwill |
|
11,716 |
|
11,681 |
|
1,862 |
Amount
due from related parties |
|
20,000 |
|
- |
|
- |
Other
non-current assets |
|
144,275 |
|
118,622 |
|
18,911 |
|
|
|
|
|
|
|
Total
non-current assets |
|
4,329,245 |
|
4,437,482 |
|
707,439 |
|
|
|
|
|
|
|
Total assets |
|
14,458,719 |
|
18,337,074 |
|
2,923,360 |
|
|
|
|
|
|
|
Liabilities,
mezzanine equity and shareholders’ equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts
payable |
|
76,351 |
|
68,010 |
|
10,842 |
Deferred
revenue |
|
758,044 |
|
764,214 |
|
121,834 |
Advances
from customers |
|
80,406 |
|
86,364 |
|
13,768 |
Income
taxes payable |
|
146,298 |
|
156,554 |
|
24,958 |
Accrued
liabilities and other current liabilities |
|
1,465,963 |
|
1,689,490 |
|
269,344 |
Amounts
due to related parties |
|
30,502 |
|
26,053 |
|
4,153 |
Derivative liabilities |
|
- |
|
899,116 |
|
143,340 |
Short-term loan |
|
588,235 |
|
- |
|
- |
|
|
|
|
|
|
|
Total current
liabilities |
|
3,145,799 |
|
3,689,801 |
|
588,239 |
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
Convertible bonds |
|
6,536 |
|
6,289 |
|
1,003 |
Deferred
revenue |
|
57,718 |
|
60,571 |
|
9,656 |
Deferred
tax liabilities |
|
10,810 |
|
62,725 |
|
10,000 |
|
|
|
|
|
|
|
Total
non-current liabilities |
|
75,064 |
|
129,585 |
|
20,659 |
|
|
|
|
|
|
|
Total
liabilities |
|
3,220,863 |
|
3,819,386 |
|
608,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)(All
amounts in thousands, except share, ADS and per ADS data)
|
|
December
31,2017 |
|
|
March 31,2018 |
|
|
March 31,2018 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
Mezzanine
equity |
|
524,997 |
|
|
3,029,437 |
|
|
482,964 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
|
|
|
Class A common shares
(US$0.00001 par value; 10,000,000,000 |
|
|
|
|
|
|
|
|
|
and
10,000,000,000 shares authorized, 945,245,908 and 965,928,668
shares issued and outstanding as of December 31, 2017 and March 31,
2018, respectively) |
|
57 |
|
|
58 |
|
|
9 |
|
Class B common shares
(US$0.00001 par value; 1,000,000,000 |
|
|
|
|
|
|
|
|
|
and
1,000,000,000 shares authorized, 317,982,976 and 297,982,976 shares
issued and outstanding as of December 31, 2017 and March 31, 2018,
respectively) |
|
23 |
|
|
22 |
|
|
4 |
|
Additional paid-in
capital |
|
5,339,844 |
|
|
5,828,395 |
|
|
929,183 |
|
Statutory reserves |
|
62,718 |
|
|
62,718 |
|
|
9,999 |
|
Retained
earnings(1) |
|
5,218,110 |
|
|
5,750,050 |
|
|
916,693 |
|
Accumulated other
comprehensive loss(1) |
|
(9,597 |
) |
|
(217,115 |
) |
|
(34,613 |
) |
|
|
|
|
|
|
|
|
|
|
Total YY Inc.’s
shareholders’ equity |
|
10,611,155 |
|
|
11,424,128 |
|
|
1,821,275 |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests |
|
101,704 |
|
|
64,123 |
|
|
10,223 |
|
|
|
|
|
|
|
|
|
|
|
Total
shareholders’ equity |
|
10,712,859 |
|
|
11,488,251 |
|
|
1,831,498 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities, mezzanine equity and |
|
|
|
|
|
|
|
|
|
shareholders’ equity |
|
14,458,719 |
|
|
18,337,074 |
|
|
2,923,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On January 1, 2018, the Group adopted ASU
2016-1, “Classification and Measurement of Financial Instruments”.
After the adoption of this new guidance, the Company will measure
long-term investments other than equity method investments at fair
value through earnings. For those investments without readily
determinable fair values, the Group will elect to record these
investments at cost, less impairment, and plus or minus subsequent
adjustments for observable price changes. Changes in the basis of
these investments will be reported in current earnings. Following
the adoption of this guidance, accumulated fair value gain,
amounting to RMB87.8 million, was reclassified from accumulated
other comprehensive loss to retained earnings as of January 1,
2018.
|
|
YY INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME |
(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
Three Months Ended |
|
|
March 31,2017 |
|
|
December
31,2017 |
|
|
March 31,2018 |
|
|
March 31,2018 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Live streaming |
|
2,057,427 |
|
|
3,368,520 |
|
|
3,032,035 |
|
|
483,378 |
|
Others |
|
209,531 |
|
|
258,018 |
|
|
216,896 |
|
|
34,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
revenues |
|
2,266,958 |
|
|
3,626,538 |
|
|
3,248,931 |
|
|
517,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues(2) |
|
(1,376,995 |
) |
|
(2,196,649 |
) |
|
(2,015,797 |
) |
|
(321,365 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
889,963 |
|
|
1,429,889 |
|
|
1,233,134 |
|
|
196,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses(2) |
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses |
|
(165,561 |
) |
|
(282,827 |
) |
|
(249,465 |
) |
|
(39,771 |
) |
Sales and marketing
expenses |
|
(88,602 |
) |
|
(148,765 |
) |
|
(235,658 |
) |
|
(37,569 |
) |
General and
administrative expenses |
|
(76,652 |
) |
|
(218,766 |
) |
|
(163,976 |
) |
|
(26,142 |
) |
Goodwill
impairment |
|
- |
|
|
(2,527 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses |
|
(330,815 |
) |
|
(652,885 |
) |
|
(649,099 |
) |
|
(103,482 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deconsolidation
and disposal of subsidiaries |
|
37,989 |
|
|
- |
|
|
- |
|
|
- |
|
Other income |
|
19,820 |
|
|
44,534 |
|
|
12,374 |
|
|
1,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
616,957 |
|
|
821,538 |
|
|
596,409 |
|
|
95,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(21,268 |
) |
|
(3,744 |
) |
|
(2,019 |
) |
|
(322 |
) |
Interest income |
|
31,031 |
|
|
74,531 |
|
|
92,191 |
|
|
14,697 |
|
Foreign currency
exchange gains (losses), net |
|
(1,293 |
) |
|
(351 |
) |
|
6,719 |
|
|
1,071 |
|
Gain on fair value
change of investments(3) |
|
- |
|
|
- |
|
|
426,547 |
|
|
68,002 |
|
Fair value loss on
derivative liabilities |
|
- |
|
|
- |
|
|
(11,868 |
) |
|
(1,892 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax expenses |
|
625,427 |
|
|
891,974 |
|
|
1,107,979 |
|
|
176,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses |
|
(89,073 |
) |
|
(151,523 |
) |
|
(148,245 |
) |
|
(23,634 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
share of income in equity method |
|
|
|
|
|
|
|
|
|
|
|
|
investments, net of income taxes |
|
536,354 |
|
|
740,451 |
|
|
959,734 |
|
|
153,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of income in
equity method investments, net of income taxes |
|
3,935 |
|
|
17,557 |
|
|
9,179 |
|
|
1,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
540,289 |
|
|
758,008 |
|
|
968,913 |
|
|
154,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net (loss) income
attributable to the non- |
|
|
|
|
|
|
|
|
|
|
|
|
controlling interest shareholders and the mezzanine
classified non-controlling interest shareholders |
|
(2,865 |
) |
|
17,602 |
|
|
35,491 |
|
|
5,658 |
|
Deemed
dividend to subsidiary's Series A preferred shareholders |
|
- |
|
|
- |
|
|
489,284 |
|
|
78,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to YY Inc. |
|
543,154 |
|
|
740,406 |
|
|
444,138 |
|
|
70,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(CONTINUED)(All amounts in thousands, except share, ADS
and per ADS data) |
|
|
|
|
|
Three Months Ended |
|
|
March 31,2017 |
|
December31,2017 |
|
|
March 31,2018 |
|
|
March 31,2018 |
|
|
|
RMB |
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to YY Inc. |
|
543,154 |
|
740,406 |
|
|
444,138 |
|
|
70,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss)
of available-for-sales securities, net of nil tax |
|
42,236 |
|
(21,440 |
) |
|
- |
|
|
- |
|
Foreign currency
translation adjustments, net of nil tax |
|
619 |
|
(48,828 |
) |
|
(119,187 |
) |
|
(19,001 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to YY Inc. |
|
586,009 |
|
670,138 |
|
|
324,951 |
|
|
51,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
9.58 |
|
11.63 |
|
|
6.97 |
|
|
1.11 |
|
—Diluted |
|
9.25 |
|
11.53 |
|
|
6.86 |
|
|
1.09 |
|
Weighted average number
of ADS used in calculating net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
56,675,919 |
|
63,686,056 |
|
|
63,694,535 |
|
|
63,694,535 |
|
—Diluted |
|
60,975,038 |
|
64,224,006 |
|
|
64,713,421 |
|
|
64,713,421 |
|
(1) On January 1, 2018, the Group adopted ASC
606, "Revenue from Contracts with Customers" using the modified
retrospective method applied to those contracts which were not
completed as of January 1, 2018. Based on the Company’s assessment,
the adoption of ASC 606 did not have any material impact on the
Group’s consolidated financial statements.
(2) Share-based compensation was allocated in
cost of revenues and operating expenses as follows:
|
|
Three Months Ended |
|
|
|
March 31,2017 |
December31,2017 |
March 31,2018 |
March 31,2018 |
|
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Cost of
revenues |
|
3,623 |
36,549 |
19,608 |
3,126 |
|
Research
and development expenses |
|
11,404 |
106,501 |
54,467 |
8,683 |
|
Sales and
marketing expenses |
|
509 |
3,679 |
1,869 |
298 |
|
General
and administrative expenses |
|
7,057 |
61,731 |
36,563 |
5,829 |
|
(3) On January 1, 2018, the Group adopted ASU 2016-1,
“Classification and Measurement of Financial Instruments”. After
the adoption of this new guidance, the Company will measure
long-term investments other than equity method investments at fair
value through earnings. For those investments without readily
determinable fair values, the Group will elect to record these
investments at cost, less impairment, and plus or minus subsequent
adjustments for observable price changes. Changes in the basis of
these investments will be reported in current earnings.
|
|
YY INC. |
RECONCILIATION OF GAAP AND NON-GAAP
RESULTS |
(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
Three Months Ended |
|
|
March 31,2017 |
|
|
December31,2017 |
|
|
March 31,2018 |
|
|
March 31,2018 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
616,957 |
|
|
821,538 |
|
|
596,409 |
|
|
95,082 |
|
Share-based
compensation expenses |
|
22,593 |
|
|
208,460 |
|
|
112,507 |
|
|
17,936 |
|
Impairment of goodwill
and investments |
|
1,700 |
|
|
4,113 |
|
|
18,349 |
|
|
2,925 |
|
Gain on deconsolidation
and disposal of a subsidiary |
|
(37,989 |
) |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
603,261 |
|
|
1,034,111 |
|
|
727,265 |
|
|
115,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to YY Inc. |
|
543,154 |
|
|
740,406 |
|
|
444,138 |
|
|
70,806 |
|
Share-based
compensation expenses |
|
22,593 |
|
|
208,460 |
|
|
112,507 |
|
|
17,936 |
|
Impairment of goodwill
and investments |
|
1,700 |
|
|
4,113 |
|
|
18,349 |
|
|
2,925 |
|
Gain on deconsolidation
and disposal of a subsidiary |
|
(37,989 |
) |
|
- |
|
|
- |
|
|
- |
|
Gain on fair value
change of investments |
|
- |
|
|
- |
|
|
(426,547 |
) |
|
(68,002 |
) |
Fair value loss on
derivative liabilities |
|
- |
|
|
- |
|
|
11,868 |
|
|
1,892 |
|
Deemed dividend to
subsidiary's Series A preferred shareholders |
|
- |
|
|
- |
|
|
489,284 |
|
|
78,003 |
|
Income tax effects on
non-GAAP adjustments |
|
5,443 |
|
|
- |
|
|
44,466 |
|
|
7,089 |
|
Net income (loss)
attributable to the non-controlling interest shareholders |
|
(1,033 |
) |
|
(367 |
) |
|
5,820 |
|
|
928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to YY Inc. |
|
533,868 |
|
|
952,612 |
|
|
699,885 |
|
|
111,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
9.42 |
|
|
14.96 |
|
|
10.99 |
|
|
1.75 |
|
—Diluted |
|
9.10 |
|
|
14.83 |
|
|
10.78 |
|
|
1.72 |
|
Weighted average number
of ADS used in calculating Non-GAAP net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
56,675,919 |
|
|
63,686,056 |
|
|
63,694,535 |
|
|
63,694,535 |
|
—Diluted |
|
60,975,038 |
|
|
64,224,006 |
|
|
64,713,421 |
|
|
64,713,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED SEGMENT
REPORT(All amounts in thousands, except share, ADS and per
ADS data)
|
|
Three Months Ended |
|
|
March 31,
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY Live |
|
|
Huya |
|
|
Elimination(1) |
|
|
Total |
|
|
Total |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Live
streaming |
|
2,239,251 |
|
|
792,784 |
|
|
- |
|
|
3,032,035 |
|
|
483,378 |
|
Others |
|
168,053 |
|
|
50,798 |
|
|
(1,955 |
) |
|
216,896 |
|
|
34,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
2,407,304 |
|
|
843,582 |
|
|
(1,955 |
) |
|
3,248,931 |
|
|
517,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of revenues(2) |
|
(1,303,264 |
) |
|
(712,533 |
) |
|
- |
|
|
(2,015,797 |
) |
|
(321,365 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,104,040 |
|
|
131,049 |
|
|
(1,955 |
) |
|
1,233,134 |
|
|
196,591 |
|
Operating expenses(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
(198,007 |
) |
|
(51,458 |
) |
|
- |
|
|
(249,465 |
) |
|
(39,771 |
) |
Sales
and marketing expenses |
|
(211,673 |
) |
|
(25,940 |
) |
|
1,955 |
|
|
(235,658 |
) |
|
(37,569 |
) |
General and administrative expenses |
|
(128,193 |
) |
|
(35,783 |
) |
|
- |
|
|
(163,976 |
) |
|
(26,142 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
(537,873 |
) |
|
(113,181 |
) |
|
1,955 |
|
|
(649,099 |
) |
|
(103,482 |
) |
Other
income |
|
2,091 |
|
|
10,283 |
|
|
- |
|
|
12,374 |
|
|
1,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
568,258 |
|
|
28,151 |
|
|
- |
|
|
596,409 |
|
|
95,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(2,019 |
) |
|
- |
|
|
- |
|
|
(2,019 |
) |
|
(322 |
) |
Interest income |
|
81,607 |
|
|
10,584 |
|
|
- |
|
|
92,191 |
|
|
14,697 |
|
Foreign currency exchange gains, net |
|
6,719 |
|
|
- |
|
|
- |
|
|
6,719 |
|
|
1,071 |
|
Fair
value loss on derivative liabilities |
|
- |
|
|
(11,868 |
) |
|
- |
|
|
(11,868 |
) |
|
(1,892 |
) |
Gain
on fair value change of investments |
|
426,547 |
|
|
- |
|
|
- |
|
|
426,547 |
|
|
68,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expenses |
|
1,081,112 |
|
|
26,867 |
|
|
- |
|
|
1,107,979 |
|
|
176,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expenses) benefits |
|
(152,709 |
) |
|
4,464 |
|
|
- |
|
|
(148,245 |
) |
|
(23,634 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before share of
income in |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity method investments, net of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes |
|
928,403 |
|
|
31,331 |
|
|
- |
|
|
959,734 |
|
|
153,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of income in equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments, net of income taxes |
|
9,103 |
|
|
76 |
|
|
- |
|
|
9,179 |
|
|
1,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
937,506 |
|
|
31,407 |
|
|
- |
|
|
968,913 |
|
|
154,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The elimination mainly consists of revenues and expenses
generated from advertising services among YY Live and Huya
segments.
(2) Share-based compensation was allocated in cost of revenues
and operating expenses as follows:
|
|
Three Months Ended |
|
|
March 31, 2018 |
|
|
|
|
|
|
|
|
YY Live |
Huya |
Total |
Total |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Cost
of revenues |
|
19,353 |
255 |
19,608 |
3,126 |
Research and development expenses |
|
52,677 |
1,790 |
54,467 |
8,683 |
Sales
and marketing expenses |
|
1,451 |
418 |
1,869 |
298 |
General and administrative expenses |
|
14,659 |
21,904 |
36,563 |
5,829 |
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.RECONCILIATION OF
GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All
amounts in thousands, except share, ADS and per ADS data)
|
Three Months Ended |
|
March 31, 2018 |
|
|
|
|
|
|
|
|
|
YY Live |
|
Huya |
|
Total |
|
Total |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
Operating income |
568,258 |
|
28,151 |
|
596,409 |
|
95,082 |
Share-based compensation expenses |
88,140 |
|
24,367 |
|
112,507 |
|
17,936 |
Impairment of goodwill and investments |
18,349 |
|
- |
|
18,349 |
|
2,925 |
|
|
|
|
|
|
|
|
Non-GAAP operating income |
674,747 |
|
52,518 |
|
727,265 |
|
115,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED SEGMENT
REPORT(All amounts in thousands, except share, ADS and per
ADS data)
|
|
Three Months Ended |
|
|
December 31, 2017 |
|
|
|
|
|
|
|
|
YY Live |
|
|
Huya |
|
|
Total |
|
|
Total |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Live
streaming |
|
2,675,812 |
|
|
692,708 |
|
|
3,368,520 |
|
|
517,732 |
|
Others |
|
209,707 |
|
|
48,311 |
|
|
258,018 |
|
|
39,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
2,885,519 |
|
|
741,019 |
|
|
3,626,538 |
|
|
557,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of revenues(1) |
|
(1,563,735 |
) |
|
(632,914 |
) |
|
(2,196,649 |
) |
|
(337,619 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,321,784 |
|
|
108,105 |
|
|
1,429,889 |
|
|
219,770 |
|
Operating expenses(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
(239,103 |
) |
|
(43,724 |
) |
|
(282,827 |
) |
|
(43,470 |
) |
Sales
and marketing expenses |
|
(119,181 |
) |
|
(29,584 |
) |
|
(148,765 |
) |
|
(22,865 |
) |
General and administrative expenses |
|
(182,164 |
) |
|
(36,602 |
) |
|
(218,766 |
) |
|
(33,624 |
) |
Goodwill impairment |
|
(2,527 |
) |
|
- |
|
|
(2,527 |
) |
|
(388 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
(542,975 |
) |
|
(109,910 |
) |
|
(652,885 |
) |
|
(100,347 |
) |
Other
income |
|
44,534 |
|
|
- |
|
|
44,534 |
|
|
6,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
823,343 |
|
|
(1,805 |
) |
|
821,538 |
|
|
126,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(3,744 |
) |
|
- |
|
|
(3,744 |
) |
|
(575 |
) |
Interest income |
|
67,597 |
|
|
6,934 |
|
|
74,531 |
|
|
11,455 |
|
Foreign currency exchange losses, net |
|
(351 |
) |
|
- |
|
|
(351 |
) |
|
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expenses |
|
886,845 |
|
|
5,129 |
|
|
891,974 |
|
|
137,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expenses |
|
(151,523 |
) |
|
- |
|
|
(151,523 |
) |
|
(23,289 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before share of income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
in equity method investments, net of
income |
|
|
|
|
|
|
|
|
|
|
|
|
taxes |
|
735,322 |
|
|
5,129 |
|
|
740,451 |
|
|
113,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of income (loss) in equity |
|
|
|
|
|
|
|
|
|
|
|
|
method
investments, net of income |
|
|
|
|
|
|
|
|
|
|
|
|
taxes |
|
17,708 |
|
|
(151 |
) |
|
17,557 |
|
|
2,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
753,030 |
|
|
4,978 |
|
|
758,008 |
|
|
116,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation was allocated in cost of
revenues and operating expenses as follows:
|
|
Three Months Ended |
|
|
December 31, 2017 |
|
|
|
|
|
|
|
|
YY Live |
Huya |
Total |
Total |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Cost
of revenues |
|
36,320 |
229 |
36,549 |
5,617 |
Research and development expenses |
|
104,569 |
1,932 |
106,501 |
16,369 |
Sales
and marketing expenses |
|
3,145 |
534 |
3,679 |
565 |
General and administrative expenses |
|
40,958 |
20,773 |
61,731 |
9,488 |
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.RECONCILIATION OF
GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT
REPORT (All amounts in thousands, except share, ADS
and per ADS data)
|
|
Three Months Ended |
|
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
YY Live |
|
Huya |
|
Total |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
823,343 |
|
(1,805) |
|
821,538 |
|
126,268 |
Share-based compensation expenses |
|
184,992 |
|
23,468 |
|
208,460 |
|
32,039 |
Impairment of goodwill and investments |
|
4,113 |
|
- |
|
4,113 |
|
632 |
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
1,012,448 |
|
21,663 |
|
1,034,111 |
|
158,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED SEGMENT
REPORT(All amounts in thousands, except share, ADS and per
ADS data)
|
|
Three Months Ended |
|
|
|
March 31, 2017 |
|
|
|
|
|
|
|
|
YY Live |
|
|
Huya |
|
|
Total |
|
|
Total |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Live
streaming |
|
1,674,786 |
|
|
382,641 |
|
|
2,057,427 |
|
|
298,906 |
|
Others |
|
193,273 |
|
|
16,258 |
|
|
209,531 |
|
|
30,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
1,868,059 |
|
|
398,899 |
|
|
2,266,958 |
|
|
329,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of revenues(1) |
|
(994,233 |
) |
|
(382,762 |
) |
|
(1,376,995 |
) |
|
(200,052 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
873,826 |
|
|
16,137 |
|
|
889,963 |
|
|
129,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
(123,169 |
) |
|
(42,392 |
) |
|
(165,561 |
) |
|
(24,053 |
) |
Sales
and marketing expenses |
|
(73,371 |
) |
|
(15,231 |
) |
|
(88,602 |
) |
|
(12,872 |
) |
General and administrative expenses |
|
(66,462 |
) |
|
(10,190 |
) |
|
(76,652 |
) |
|
(11,136 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
(263,002 |
) |
|
(67,813 |
) |
|
(330,815 |
) |
|
(48,061 |
) |
Gain
on deconsolidation and disposal of subsidiaries |
|
37,989 |
|
|
- |
|
|
37,989 |
|
|
5,519 |
|
Other
income |
|
10,299 |
|
|
9,521 |
|
|
19,820 |
|
|
2,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
659,112 |
|
|
(42,155 |
) |
|
616,957 |
|
|
89,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(21,268 |
) |
|
- |
|
|
(21,268 |
) |
|
(3,090 |
) |
Interest income |
|
30,555 |
|
|
476 |
|
|
31,031 |
|
|
4,508 |
|
Foreign currency exchange losses, net |
|
(1,293 |
) |
|
- |
|
|
(1,293 |
) |
|
(188 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax expenses |
|
667,106 |
|
|
(41,679 |
) |
|
625,427 |
|
|
90,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expenses |
|
(89,073 |
) |
|
- |
|
|
(89,073 |
) |
|
(12,941 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
share of income in equity
method |
|
|
|
|
|
|
|
|
|
|
|
|
investments, net of income taxes |
|
578,033 |
|
|
(41,679 |
) |
|
536,354 |
|
|
77,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of income in equity method investments, net of income |
|
|
|
|
|
|
|
|
|
|
|
|
taxes |
|
3,935 |
|
|
- |
|
|
3,935 |
|
|
572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss)
(2) |
|
581,968 |
|
|
(41,679 |
) |
|
540,289 |
|
|
78,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation was allocated in cost of revenues
and operating expenses as follows:
|
Three Months Ended |
|
March 31,
2017 |
|
|
|
YY Live |
Huya |
Total |
Total |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Cost
of revenues |
2,380 |
1,243 |
3,623 |
526 |
Research and development expenses |
8,349 |
3,055 |
11,404 |
1,657 |
Sales
and marketing expenses |
305 |
204 |
509 |
74 |
General and administrative expenses |
4,568 |
2,489 |
7,057 |
1,025 |
(2) Starting from the three months ended December 31, 2017, the
Company reviews the financial performance of the operating segments
up to the net income of each segment. Segment information for
comparative periods has been revised to be presented on the same
basis as the three months ended December 31, 2017
|
|
YY INC. |
RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF
UNAUDITED SEGMENT REPORT |
(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
Three Months Ended |
|
|
March 31,
2017 |
|
|
|
|
|
YY Live |
|
|
Huya |
|
|
Total |
|
|
Total |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
659,112 |
|
|
(42,155 |
) |
|
616,957 |
|
|
89,632 |
|
Share-based compensation expenses |
|
15,602 |
|
|
6,991 |
|
|
22,593 |
|
|
3,282 |
|
Impairment of goodwill and investments |
|
1,700 |
|
|
- |
|
|
1,700 |
|
|
247 |
|
Gain
on deconsolidation and disposal of a subsidiary |
|
(37,989 |
) |
|
- |
|
|
(37,989 |
) |
|
(5,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (loss) |
|
638,425 |
|
|
(35,164 |
) |
|
603,261 |
|
|
87,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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