On May 29th, Huanju Group released its Q1 2024 performance report. During the reporting period, Huanju Group achieved a revenue of 564.6 million US dollars; Under non US GAAP accounting standards, the net profit achieved $67.2 million, a year-on-year increase of 34.8%, and the net profit margin reached 11.9%, a year-on-year increase of 3.4 percentage points. The positive operating cash flow reached 75 million US dollars.
Specifically, in terms of sectors, the core business sector's BIGO revenue in the first quarter of 2024 was 505.2 million US dollars, an increase of 8% year-on-year, and has continued to recover for three consecutive quarters; After adjustment, the net profit was 71.2 million US dollars, a year-on-year increase of 25.3%, and the adjusted net profit margin was 14.1%, a year-on-year increase of 2 percentage points; The number of paying users reached 1.69 million, a year-on-year increase of 6.9%.
Huanju Group stated that, Behind the recovery of the BIGO business sector, thanks to flexible and targeted operational strategies, the product side continuously and accurately grasps the trends of major global markets, focusing resources on areas with greater consumer resilience.
"Huanju Group's net profit increased significantly in the first quarter, demonstrating good cost control and profitability. In particular, the core sector's BIGO revenue increased by 8% year-on-year, indicating the company's continued stability in its main business areas." Zhang Yi, CEO and Chief Analyst of iMedia Consulting, told Securities Daily reporters. In addition, the growth in the number of paid users also reflects the company's success in user acquisition and retention. Overall, Huanju Group's performance in the first quarter was stable, and its future development potential is promising.
In terms of product line, live streaming product Bigo Live also continues its recovery trend, performing well in developed countries. In the first quarter of 2024, it achieved a year-on-year increase of 14.8% in revenue, a year-on-year increase of 17.2% in paid users, and a year-on-year increase of 8.9% in monthly active users.
In addition, After the launch of the intelligent management backend for broadcasters and brokerage companies on Bigo Live, the number of contracted broadcasters in the first quarter increased by 4.9% month on month; Bigo Live's family paid users increased by 1.1% month on month, the number of family signed anchors increased by 1.5% month on month, and the daily active number of families increased by 3.2% month on month. In the first quarter, the number of active users increased by 1.1% month on month, the per capita viewing time of live streaming increased by 5.4% month on month, the per capita live streaming time increased by 5.3% month on month, and the rate of multi person rooms using microphone increased by 4.4% month on month.
The operating cash flow of the multiplayer interactive social product Hago continues to be positive, and user social activity has further increased. The average duration of stay on social channels has increased by 2.8% to 102 minutes on a month on month basis, and the average duration of a multiplayer voice room has increased by 2.9% on a month on month basis.
The short video product Likee has iterated and upgraded around social interaction mechanisms and creator incentive measures, and has achieved positive results. In the first quarter, the number of core creators increased by 13.6% month on month; Likee's advertising revenue increased by 1.1 times year-on-year and continues to maintain profitability.
In terms of share repurchases, Huanju Group continued to actively promote repurchases in the first quarter of 2024, with a cumulative increase of $54.5 million in repurchased shares. According to the existing stock repurchase plan, as of March 31, 2024, Huanju Group still has a stock repurchase quota of $472 million. According to statistics, since 2020, Huanju Group has cumulatively returned nearly 1.43 billion US dollars to shareholders through stock repurchases and dividends.
"The implementation of share buybacks by Huanju Group not only demonstrates the company's firm confidence in future development prospects, but also reflects its commitment to valuing shareholder interests and positive returns." An anonymous securities analyst told Securities Daily reporters that share buybacks also help improve the stability of the company's stock price and enhance market confidence. In addition, repurchasing shares can also be considered as a future equity incentive tool for the company, attracting and retaining outstanding talents, and further promoting the long-term development of the company.
Looking ahead to the future, Li Xueling, Chairman and CEO of Huanju Group, stated that he will continue to focus on the long-term, promote product and operational innovation, continuously improve operational efficiency, and drive sustainable global business growth.