Douyu International Holdings ( (DOYU) ) has released its Q3 earnings. Here is a breakdown of the information Douyu International Holdings presented to its investors.
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DouYu International Holdings Limited, headquartered in Wuhan, China, is a leading live streaming platform focused on gaming and eSports in China.
DouYu reported its third-quarter 2024 financial results, showcasing a decline in key financial metrics compared to the previous year. The company, however, emphasized its strategy to adapt to external challenges and focus on long-term growth by diversifying revenue streams and optimizing operations.
In the third quarter of 2024, DouYu’s total net revenues decreased by 21.8% year-over-year to RMB1,063.1 million (US$151.5 million), with a significant drop in livestreaming revenues by 34.7% due to decreased paying user numbers and a challenging macroeconomic environment. Meanwhile, revenues from innovative business and advertising saw a notable increase, accounting for 29.3% of the total revenue, up from 15.3% the previous year. Despite cost-cutting measures, including reduced sales, marketing, and R&D expenses, the company reported a net income of RMB3.4 million (US$0.5 million), a sharp decline from RMB76.4 million in the same period of 2023.
The company’s efforts to manage costs resulted in a 14.1% reduction in the cost of revenues, but the gross profit and gross margin still experienced declines, reflecting the adverse impact of decreased livestreaming revenues. DouYu’s strategic focus on diversifying income sources through new ventures like voice-based social networking and game membership services aims to counterbalance the livestreaming revenue dip.
Looking ahead, DouYu remains committed to enhancing its content ecosystem and operational efficiency, aiming for sustainable growth amid industry shifts and economic challenges. The company is strategically allocating resources to strengthen its community ecosystem and drive long-term shareholder value.
