Caixin News, November 27th (Reporter Cui Ming) Due to actively optimizing content costs and advertising strategies, Joyy Group (NASDAQ: YY) saw an increase in Q3 operating profit compared to the previous quarter, with a greater contribution from non-live streaming business revenue. During today's earnings call, Joyy executives stated that BIGO's profit is expected to stabilize and grow next year.

Today, Joyy Group released its third-quarter financial report for 2024. In the third quarter, the group's revenue was 0.5587 billion US dollars, a slight decrease of 1.13% from the previous quarter; under non-US GAAP, net profit was 61.2 million US dollars, a decrease of 17.3% from the previous quarter, and operating profit reached 34.9 million US dollars, an increase of 16.4% from the previous quarter.

Specifically in terms of business, the company's live streaming business revenue in Q3 was 0.4395 billion US dollars, a year-on-year decrease of 11.35%, while non-live streaming business revenue was 0.1192 billion US dollars, a year-on-year increase of 67.2%, with a 13.1% increase from the previous quarter, accounting for 21.3% of total company revenue.

During the earnings conference, Joyy executives mentioned that one reason is the company's continued emphasis on global refined operations and optimization of content costs in certain regional products. Another reason is based on long-term development needs, adjustments were made to non-core product gameplay in the BIGO sector in the third quarter.

"All the adjustments we are making now are proactive, aiming to refine the product for a healthier profit model, and to build a sustainable business ecosystem." Joyy executives mentioned that these adjustments have shown some positive effects on the gross profit, ROI, and operating profit trends of BIGO in the third quarter.

Looking at individual markets, developed countries continue to be the company's main source of growth. The revenue growth rate in Q3 for developed countries reached 21.6%, leading other regions, with the revenue share increasing to 54.9%. Revenue in the Middle East increased by 2.1% from the previous quarter, showing signs of recovery.

Joyy revealed that they will prioritize operating resources in regions with high monetization potential, with developed countries and the Middle East expected to remain key areas of focus for the company.

With a series of adjustments gradually implemented in 2024, joyy expects a fresh start for BIGO and the entire group in 2025. The BIGO sector will continue to focus its operational resources on developed countries and the acquisition of high-quality paying users, expecting paying users to gradually recover year-on-year and quarter-on-quarter growth next year, with the opportunity for ARPPU to stabilize, thereby driving the return of year-on-year growth in live streaming revenue for BIGO's core overseas products. In addition, BIGO's non-live streaming revenue is expected to continue to maintain double-digit year-on-year growth.

It is worth mentioning that the company invested $0.118 billion in share buybacks in the third quarter. In the first three quarters of 2024, joyy has already invested a total of $0.244 billion in buybacks, repurchasing a total of 7.31 million ADS shares, accounting for 12% of the company's total share capital at the end of last year.