RNG Won The Championship In The League Of Heroes, And The Shareholder Huya Earned Traffic But Did Not Make Money

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On May 29, 2022 hero League mid season championship (MSI) China's team RNG defeated South Korea's T1 team to win the championship, which is the third MSI champion in RNG's history After EDG won the championship last November, E-sports events also brushed the screen circle of friends again and ranked first in microblog hot search.

Author / liuxiaojie

MSI is the level second only to the S-class global finals in the League of heroes event system, and it is also a world-class event in the middle of each year. It has a high gold content and topic. As of press time, rng has won the title .

Behind the RNG win this time, I have to mention [tiger tooth] as the leader of live game broadcasting( http://stock.finance.sina.com.cn/usstock/quotes/HUYA.html ) It not only owns the exclusive broadcasting right of the hero League event, but also one of the shareholders of the champion team RNG.

According to the tianyancha data, RNG, the full name of Royal E-sports club, was founded in may2012. Its subsidiary is Leyou network technology in Shangrao City. In November 2018, tiger tooth took a stake in Leyou network through its management consulting partnership, which holds 99.9% of the shares, and obtained 10.27% of the shares. All members of RNG team also signed a live broadcast contract with tiger tooth.

RNG has won the LPL Championship for five times, with about 8.6 million Weibo fans. The attention of the team is second only to Ig club. The sponsor team is also quite large, including Mercedes Benz, Dongpeng special drink, Logitech, Wahaha and other companies. Dongpeng special drink has sponsored the RNG E-sports team for the fifth consecutive year since 2018.

As of press time, the interface of Huya platform shows that about 15million people have subscribed to the final, which is broadcast on b The live broadcast platform also has tens of millions of views.

At the beginning of 2021, Huya spent about 2billion yuan to win the five-year exclusive broadcasting right of the League of heroes professional league (LPL), breaking the historical record of the price of copyrighted events, and becoming the only live broadcasting platform in China that gathers the copyrights of the League of Heroes 5 competition area. At present, this investment may not be lost.

In November last year, fist Games officially announced that in October 2021, the number of monthly active IP series products of hero League had exceeded 180million. At the same time, the top list data report of data mining service providers on the live broadcast platform shows that among the top ten live games in 2021, the average number of daily anchors of League of heroes is 194200, second only to glory of the king, and its average number of daily active viewers is the largest on the whole platform, reaching 3459400.

For live game broadcasting, owning the event copyright means owning users. Tiger tooth has been laying out the event copyright in the past two years. In November, 2021, Huya and ESL signed a two-year copyright agreement for live broadcast of exclusive Chinese events, covering cs:go, dota2, StarCraft II and other events. At present, tiger tooth has basically covered the live broadcast copyright of head games, including E-sports categories such as king glory and peace elite.

In addition, as a major shareholder wholly owned by Huya, Tencent It can give tiger tooth the fullest content resource support. Almost all the popular products of the live game platform belong to Tencent, which has an absolute advantage in the content side.

In the first quarter of this year, Huya broadcast about 80 copyright events, which were watched more than 700million times. The first quarter is usually not the peak season for copyright events, but the total number of viewers of events in this quarter exceeded that in the previous quarter.

Top level events can not only attract advertisers, but also make profits through distribution. On May 17, Huya released its financial report for the first quarter of 2022, which showed that in the first quarter of 2022, Huya's advertising and other revenues bucked the trend and increased by about 47.2% to RMB 310million. The financial report explained that this was mainly driven by the increase in content sublicense revenue.

The rich content layout also drives the growth of platform users. In the first quarter of this year, the mobile terminal Mau (monthly average active users) of Huya live broadcast reached 81.9 million, with a year-on-year increase of 8.5%; The number of paid users of live broadcast service was 5.9 million, the same as that of the same period last year.

In the first quarter, the revenue of Huya's main business live broadcasting services fell by about 10% to 2.15 billion yuan. Huya financial report said that due to the macroeconomic impact, the average expenditure per paying user of Huya live fell. In terms of cost, as the revenue sharing fee and E-sports copyright expenditure increased by 3.4% year-on-year to about 1.81 billion yuan, the current revenue cost of Huya was 2.13 billion yuan, an increase of 1.9% year-on-year.

In the first quarter of 2022, the total revenue of Huya was 2.46 billion yuan, a year-on-year decrease of 0.5%; The net loss attributable to Huya was 3.3 million yuan, which turned into a loss on a year-on-year basis, and the net profit for the same period last year was 185.5 million yuan; Under non US GAAP, Huya's net profit for the quarter was 46.6 million yuan, a year-on-year decrease of 82.47%, but the loss was reversed month on month. In the fourth quarter of 2021, Huya's non GAAP net profit turned into a loss of RMB 242million for the first time.

Wu Xin, vice president of finance of Huya, once said that although the business environment fluctuates greatly, Huya continues to make strategic efforts in content investment and E-sports to expand products and promote the sustainable growth of users.

While improving the reserve of top live broadcast resources, tiger tooth has also reserved a lot of E-sports head anchor and team resources to continue betting on E-sports.

In addition to holding shares in RNG, tiger tooth established its own team "Chengdu Hunter" in 2018 to directly participate in the "watch pioneer" E-sports event. According to the official website, Huya live also signed many world champion teams and anchors, such as RNG, FPX, etc. in the hero League section, the anchor has All-Star solo champion Uzi, the former professional player mlxg, etc; The king glory section has signed a contract with nine professional teams including KPL five time champion qghappy and hero, and has anchor zhangdaxian, solitary shadow, etc.

The social impact of e-sports industry continues to expand as the e-sports enters Asia and the League of heroes wins the finals. According to the 2021 China's game industry report issued by the game Working Committee of the China audio and digital Association, the sales revenue of the domestic E-sports market in 2021 was 140.181 billion yuan, a year-on-year increase of 2.65%. The number of users reached 489million, a year-on-year increase of 0.27%. In the era of "national E-sports", there are still many possibilities in this field.

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