DouYu International Holdings Limited Reports Second Quarter 2024 Unaudited Financial Results

Core Insights - DouYu International Holdings Limited reported a significant decline in financial performance for Q2 2024, with total net revenues decreasing by 25.9% year-over-year to RMB1,032.0 million (US$142.0 million) [2][4] - The company experienced a net loss of RMB49.2 million (US$6.8 million) compared to a net income of RMB6.8 million in the same period of 2023, indicating a substantial shift in profitability [2][10] - DouYu's management emphasized a focus on diversifying revenue streams and enhancing content offerings despite facing macroeconomic challenges [3][4] Financial Performance - Total net revenues for Q2 2024 were RMB1,032.0 million (US$142.0 million), down from RMB1,392.2 million in Q2 2023, marking a 25.9% decrease [2][4] - Livestreaming revenues fell by 37.2% to RMB790.1 million (US$108.7 million) due to a soft macroeconomic environment and reduced promotional activities [4][6] - Gross profit decreased to RMB84.2 million (US$11.6 million) from RMB188.9 million in Q2 2023, resulting in a gross margin of 8.2% compared to 13.6% a year earlier [7][10] User Metrics - Average mobile monthly active users (MAUs) declined to 44.1 million in Q2 2024 from 50.3 million in the same period of 2023 [2][4] - The number of quarterly average paying users decreased to 3.4 million from 4.0 million year-over-year [2][4] Cost Management - Cost of revenues decreased by 21.2% to RMB947.8 million (US$130.4 million) from RMB1,203.3 million in Q2 2023, reflecting improved cost management [5][6] - Revenue-sharing fees and content costs also saw a reduction, decreasing by 18.1% to RMB803.4 million (US$110.6 million) [6][7] Strategic Initiatives - DouYu's innovative business, advertising, and other revenues increased by 80.7% to RMB242 million (US$33.3 million), contributing 23.4% of total revenue, up from 9.6% in Q2 2023 [3][5] - The company announced a US$300 million special cash dividend and successfully completed a US$20 million share repurchase program, indicating a commitment to shareholder value [3][11] Future Outlook - Management plans to continue exploring commercial diversification pathways and adapt operating strategies to address ongoing challenges in the macroeconomic environment [3][4]