JOYY Shares Dive On Q2 Results, Users Decline On Indian Market Ban

Social media platform JOYY Inc YY reported second-quarter FY21 revenue growth of 39.7% year-on-year $661.7 million, beating the analyst consensus of $656.2 million.
Drivers: Global average mobile MAUs decreased by 26.0% Y/Y to 307.5 million as the Indian government blocked Chinese-owned apps in its local market.
Average mobile MAUs of Likee declined by 38.6% Y/Y to 92.3 million.
Average mobile MAUs of Bigo Live remained flat at 29.5 million.
Average mobile MAUs of Hago slumped by 62.9% Y/Y to 11.8 million.
The total number of paying users of BIGO (including Bigo Live, Likee, and imo) increased by 12.0% Y/Y to 1.58 million.
The average revenue per paying user of BIGO increased by 23.9% Y/Y to $316.0.
Segments: Live streaming revenues increased by 39.7% Y/Y to $629.6 million, out of which Bigo contributed $576.5 million.
Margins: Gross margin improved to 30.7% from 26.8% as costs rose 32.2% Y/Y.
Non-GAAP operating loss margin improved to 2.0% from 13.9%.
Non-GAAP loss per ADS was $(0.01) beat the analyst consensus loss of $(0.7).
JOYY held $4.9 billion in cash and equivalents.
The board had approved a quarterly dividend policy for the next three years commencing in Q3 of 2020.
Outlook: JOYY sees Q3 revenue of $608 million - $635 million, below the analyst consensus of $750.1 million.
Price Action: YY shares traded lower by 7.44% at $37.97 in the premarket session on the last check Thursday.

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