The stock in JOYY Inc. (Nasdaq: YY) was trading down nearly 3% Thursday afternoon after the company announced the plunged year-over-year income.
The Guangzhou-based social media platform said in a statement posted after markets closed Wednesday that it gained a 50% year-over-year increase in net revenues, amounting to $1,009.7 million in the three months through March. Net income of YY in the first quarter reached $54.6 million, or 63 cents per share, down 85% from one year ago.
“During the first quarter, our dual-engine growth strategy of combining living streaming with short-form videos continued to produce good results across all of our business segments,” Xueling Li, the chief executive officer of YY, said in the statement.
YY said its revenue was primarily driven by a 51% year-over-year increase in live streaming from HUYA Inc. and Bigo as well as the advertising contribution from the consolidation of Bigo.
Bigo segment brought the company $278.5 million for its revenue in the first quarter, up 92% year-over-year. Bigo is headquartered in Singapore and runs business in live streaming platform named Bigo Live, short-form video social platform as Likee and a video communication app of IMO. YY reported the completion of its acquisition of Bigo Inc. in March 2019.
The company announced its extended share repurchase plan on Wednesday, amounting to up to $300 million between August 2019 and August 2021.
YY said in the statement that it will no longer consolidate the operating results of HUYA for the second quarter of 2020. The company announced on April 3 that it had transferred 16.5 million shares of HUYA Inc. to Linen Investment Ltd., a wholly-owned subsidiary of Tencent Holdings Ltd., for $262.6 million in cash.
After the completion of the share transfer, Tencent owns 50.1% voting power in Huya on a fully-diluted basis, which means Huya is no longer a subsidiary of YY. The internet giant Tencent has already gained 37.18% of shares in another live streaming platform DouYu International Holdings Ltd. (Nasdaq: DOYU).
“For now, the adverse impacts of the global COVID-19 pandemic to our operation have been relatively mild, as the demand for online entertainment content and engaging social media networks remained resilient,” Bing Jin, the chief financial officer of YY, said in the statement.
Looking ahead, YY said it expects its revenue in the second quarter to be between 5 billion yuan and 5.15 billion yuan($714 million and $736 million), or 16.7% and 20.2% year-over-year.
Shares in YY closed at $63.46 per share in New York, down 3%.