HUYA: Less Traffic Spending Is Likely Positive To Bottom Line; 4Q20 Traffic Fights Are Still Intense
HUYA will report 3Q20 results on November 11th before the markets open with a 7am EST conference call. Based on our data and model, we believe HUYA is likely to deliver in line revenue, but better net earnings compared to consensus, as the company spent less on traffic acquisition. Looking into 4Q20, we believe the fight for traffic is still tense as most of the traffic is occupied by ecommerce’s annual promotional sales. However, working with Tencent, we believe HUYA has the capability to manage the traffic situation.