06:36 AM EDT, 09/03/2024 (MT Newswires) -- Hello Group's ( MOMO ) second-quarter results fell year over year amid double-digit revenue declines in its live video services and value-added services segments, while the company expects its topline to decrease by up to 15% in the ongoing three-month period versus last year.

The Chinese social networking platform operator, formerly known as Momo, anticipates revenue to be in a range of 2.58 billion renminbi ($362.5 million) to 2.68 billion renminbi ($376.6 million) for the third quarter. The outlook reflects an annual decline of roughly 12% to 15%. Four analysts surveyed by Capital IQ are looking for 2.68 billion renminbi in revenue.

"Regarding new endeavors, while strengthening the localization progress, we are more convinced of the revenue growth opportunities in overseas market," Chief Executive Yan Tang said in a Tuesday statement. The company's Nasdaq-listed shares were down 2.6% in premarket activity.

For the quarter ended June 30, the group's adjusted earnings fell to 2.38 renminbi per American depositary share from 3.14 renminbi the year before. Four analysts polled by Capital IQ expected 2 renminbi. Revenue dropped 14% year over year to 2.69 billion renminbi, while six Capital IQ-polled analysts were looking for 2.67 billion renminbi.

"I am pleased to see that our team has maintained the spirit of innovation and adaptation in a challenging environment," according to Tang. "Momo's cash cow business continued to be productive in a healthy community ecosystem."

Revenue in the live video service division dropped 18% to 1.3 billion renminbi mainly due to "operational adjustments to de-emphasis large scale competition events in the Momo app" and softening consumer trends, among other factors, according to the company. Value-added service revenue, which includes virtual gift and membership subscription, slipped 10% to 1.35 billion renminbi. Mobile marketing revenue advanced 14% to 42 million renminbi.

The company's Momo segment revenue declined to 2.46 billion renminbi from 2.82 billion renminbi in the prior-year quarter. Dating application Tantan's revenue slipped to 233.7 million renminbi from 320.7 million renminbi last year.

Total costs and expenses fell to 2.28 billion renminbi from 2.52 billion renminbi last year, according to the group.

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