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YY Reports Mixed Fiscal 3Q15 Earnings

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Price movement of YY

YY (YY) has a market cap of $3.3 billion. It’s YTD (year-to-date) price movement was a mix of rises and falls in fiscal 2015. After the 3Q15 earnings report, YY fell by 0.67% to close at $59.61 per share as of November 23, 2015. The price movement on a weekly, monthly, and YTD basis is 2.8%, 5.2%, and -4.4%, respectively.

The stock broke the support of the 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, YY is trading 2.8% above its 20-day moving average, 4.9% above its 50-day moving average, and -1.4% below its 200-day moving average.

The Global X Nasdaq China Technology ETF (QQQC) invests 3.8% of its holdings in YY. The ETF tracks a cap-weighted index of investable Chinese technology companies. Also fund invests across the market-cap spectrum. The YTD price movement of QQQC is 12.7%, as of November 20, 2015.

Meanwhile, the PowerShares Golden Dragon China Portfolio ETF (PGJ) invests 2.5% of its holdings in YY.

The competitors of YY (YY) and their market caps are:

  • Youku Tudou (YOKU) at $5.3 billion
  • SINA (SINA) at $2.9 billion
  • Sohu.com (SOHU) at $2.1 billion
  • NetEase (NTES) at $21.7 billion
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Performance of YY in fiscal 3Q15

The company reported a total net revenue of $234.4 million in fiscal 3Q15, a rise of 7.1% when compared to its total net revenue of $218.9 million in fiscal 2Q15. Revenue from online music and entertainment as well as online dating rose by 14.0% and 7.1%, respectively, and revenue from online games fell by 17.7% in fiscal 3Q15 as compared to 2Q15. The cost of revenue as a percentage of total net revenue and operating income fell by 1.6% and 36.5%, respectively, in fiscal 3Q15 on a quarterly basis. Its net income and net income per ADS (American depositary share) fell to $24.6 million and $0.43, respectively, in fiscal 3Q15, as compared to net income and net income per ADS of $46.9 million and $0.82, respectively, in fiscal 2Q15.

Meanwhile, cash and cash equivalents and short-term deposits fell by 16.5% and 22.1%, respectively, in fiscal 3Q15. The company’s current ratio fell to 1.86 while its debt-to-equity ratio rose to 1.71 in fiscal 3Q15, as compared to the current ratio and debt-to-equity ratio of 4.00 and 1.47, respectively, in fiscal 2Q15.

About YY

YY is an online social platform. It engages users through audio, video, and text in online group activities like music shows, live video streaming, and multiplayer gaming.

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