Mentioned in this article
- Chinese livestreaming platform DouYu reported its first quarterly financial results after going public on the NASDAQ in July.
- Total net revenues for Q2 2019 increased by 133.2% to ¥1.9B RMB ($273M USD) from ¥803M ($117M) in the same period last year.
- DouYu’s average paying user base for Q2 2019 is up 123.3% to 6.7M from 3M in the same quarter last year.
In July 2019, Chinese livestreaming company DouYu completed its initial public offering (IPO) on the NASDAQ at $11.50 per share, raising approximately $489.9M in net proceeds from the IPO. The company offered 44.9M American deposit shares (ADSs), while selling existing shareholders offered an additional 22.5M ADSs. The ADSs traded on the NASDAQ represent a 20.8% stake of DouYu.
On Tuesday, the company released its first financial results report after going public. Total net revenues for the first half of 2019 were ¥3.4B ($490M). Total net revenues for Q2 2019 increased by 133.2% to ¥1.9B ($273M) from ¥803M ($117M) in the same period last year.
The company’s Q2 2019 gross profit increased by 823.8% to ¥301.1M ($43.9M) from ¥32.6M ($4.75M) in Q2 2018, thus increasing its gross margin to 16.1% in Q2 2019 compared to 4.1% in the same period of 2018. Net income in Q2 2019 was ¥23.2M ($3.4M), compared to a net loss of ¥228.7M ($33.3M) in Q2 2018.
Average monthly active users (MAUs) in the Q2 of 2019 were up 32.6% to 162.8M from 122.8M in the Q2 of 2018. Average mobile MAUs in Q2 2019 were up 42.5% to 50.6M from 35.5M in the same period last year.
“In the second quarter, our average PC MAUs increased by 28.5% year-over-year to 112.2M mainly due to improving penetration and rising popularity of esports games such as Dungeon Fighter Online, Counter-Strike: Global Offensive, and Teamfight Tactics. These types of esports games tend to attract hardcore gamers who are extremely loyal livestreaming viewers and contribute high lifecycle user values” said a company representative in DouYu’s earnings call. “In the second quarter, the total viewing time of our active users achieved 2.5B hours presenting a year-over-year increase of 56%.”
The company’s paying user base revenues account for 91% of its total net revenues or ¥1.7B ($249M). The average paying user base for Q2 2019 is up 123.3% to 6.7M from 3M in the same quarter last year.
DouYu sponsored several top esports teams including Invictus Gaming (iG), a Chinese esports organization that won the 2018 League of Legends World Championship, and eStar Gaming, also a Chinese esports organization, which won the 2019 Honor of Kings King Pro League (KPL).
Note: The exchange rate used by DouYu for its financial report is the rate in effect as of June 30 at a rate of ¥6.8650 to $1.00. For the convenience of the reader, The Esports Observer used the same exchange rate for currency conversions in this article.
Credit: Source link
