On the earnings conference call for Q3 2013, David Xuelin Li, CEO of YY, said they found that it’s easier to monetize on mobile than previously thought. Small screen doesn’t seem a problem with YY users, he concluded, and there’s little difference for users to buy virtual items on mobile devices from on PCs.
YY also saw increasing traffic on mobile and there are from three channels, said Li. One is from the existing PC platform; the second is YY’s game portal; the third is organic increase of new users who start using YY’s products from mobile devices.
YY Inc. reported another strong quarter, with 113% year-over-year increase in net revenues and 239% in operating income.
Now what YY is operating are either the most popular or profitable online services in China, online games, music shows and gameplay streaming, or the promising like its online education platform. 47% of the total revenues was from YY Music and 32% from gaming. The company started seeing revenue from live game broadcasting. The rest revenue sources include membership program.
YY Music recorded a 161% year-over-year increase in revenue and 117% growth in paying user number in this quarter. The ARPU is 297 yuan (about $48).
In the past quarter the company announced strategic partnership with Asiasoft and S2 Games, aiming to try out the Southeast markets — the first try of expanding outside China.
Mr. Li said they didn’t expect the online education platform to make any income for the company very soon. He thinks at the moment the thing to do is help teachers on the platform earn as much as they can from offline classes. Thus teachers or lecture providers would be willing to join YY platform.
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