YY -4.6% AH in spite of Q1 beat, solid guidance

|About: YY Inc. (YY)|By:, SA News Editor

YY expects Q2 revenue of RMB745M-RMB755M ($119.2M-$120.8M), above a $113.6M consensus and good for 82%-85% Y/Y growth.

Online music/entertainment revenue, now 57% of total revenue, rose 11% Q/Q and 228% Y/Y to $61.6M. Paid users rose by 104K Q/Q to 1.006M, and ARPU by RMB8 to RMB381.

Online game revenue rose 8% Q/Q and 36% Y/Y to $29M. ARPU rose by RMB15 Q/Q to RMB391, and paid users by 28K to 461K after falling by 10K in Q4.

Online ads plunged 46% Q/Q and 24% Y/Y to $3.9M. All other revenue (membership fees, live game broadcasting) rose 10% Q/Q and 134% Y/Y to $12.7M.

Gross margin was 52.4%, +90 bps Q/Q but -130 bps Y/Y. Opex rose 38% Y/Y to $23.4M (trailed rev. growth of 112%).

Q1 results, PR