Hello Group Inc. (MOMO), a Chinese online social and entertainment company, Tuesday reported net income of RMB397.8 million or $54.7 million for the second quarter, lower than RMB568.4 million in the same period a year ago, primarily due to decrease in revenue.
Net income per American Depositary Share (ADS) was RMB2.11 or $0.29, down from RMB2.82 last year.
Excluding one-time items, adjusted earnings decreased to RMB449.2 million or $61.8 million from RMB632.1 million in the previous year. Adjusted earnings per ADS was RMB2.38 or $0.33 compared with RMB3.14 a year ago.
Income from operations decreased to RMB425.0 million or $58.5 million from RMB645.1 million in the prior year.
Revenue for the quarter declined 14.2 percent to RMB2.691 billion or $370.3 million from RMB3.138 billion last year.
For the Momo app, total paying users was 7.2 million for the second quarter, lower than 7.9 million for the same period last year, while Tantan had 1.0 million paying users, down from 1.4 million from the year ago period.
Looking ahead, the company expects third-quarter revenue to decrease 15.2 percent - 11.9 percent year-over-year to RMB2.58 billion - RMB2.68 billion.
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