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Huya’s fledgling diversification drive shows early promise

The operator of a livestreaming gaming platform said revenue from its new services launched just a year ago accounted for 20% of its total in the second quarter.

This article only represents the author's own views.

Huya Inc. (HUYA.US) has cleared a critical level in its diversification game. Now, it needs to up that game to return to revenue growth and boost its margins.

Last Tuesday, the operator of a livestreaming gaming platform reported a 16% year-on-year drop in its second-quarter revenue to 1.5 billion yuan ($212 million). That may look like cause for concern, but the results also featured a significant achievement that bodes well for the company as it attempts to return to growth after more than two years of revenue declines.

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