DouYu International Holdings Limited Reports First Quarter 2024 Unaudited Financial Results

Core Viewpoint - DouYu International Holdings Limited reported a significant decline in financial performance for the first quarter of 2024, with total net revenues decreasing by 29.9% year-over-year, reflecting challenges in the macroeconomic environment and the livestreaming industry dynamics [2][4]. Financial Performance - Total net revenues for Q1 2024 were RMB1,039.7 million (US$144.0 million), down from RMB1,483.1 million in Q1 2023 [2][4]. - Gross profit decreased to RMB109.0 million (US$15.1 million) from RMB176.5 million in the same period last year [2][7]. - The company reported a net loss of RMB88.0 million (US$12.2 million) compared to a net income of RMB14.5 million in Q1 2023 [2][8]. - Adjusted net loss was RMB85.7 million (US$11.9 million), a decline from adjusted net income of RMB25.8 million in the previous year [2][9]. User Metrics - Average mobile monthly active users (MAUs) were 45.3 million, down from 50.2 million in Q1 2023 [2]. - The number of quarterly average paying users decreased to 3.4 million from 4.5 million in the same period last year [2]. Revenue Breakdown - Livestreaming revenues fell by 41.5% to RMB800.9 million (US$110.9 million) due to soft macroeconomic conditions and a planned reduction in revenue-generating promotions [4][5]. - Advertising and other revenues increased by 109.3% to RMB238.8 million (US$33.1 million), driven by innovative business initiatives [5][6]. Cost Management - Cost of revenues decreased by 28.8% to RMB930.7 million (US$128.9 million) [5]. - Revenue-sharing fees and content costs dropped by 37.7% to RMB675.1 million (US$93.5 million) [6]. - Bandwidth costs decreased by 33.7% to RMB82.5 million (US$11.4 million) [6]. Operational Adjustments - The company is focusing on diversifying its commercialization capabilities and optimizing its organizational structure to enhance user experience [3]. - DouYu has returned RMB111.7 million related to historical illegal activities of third-party streamers to government authorities, recorded as an operating expense [3]. Strategic Developments - DouYu's board authorized a share repurchase program of up to US$20 million, with US$2.7 million repurchased by March 31, 2024 [10]. - The strategic cooperation agreement with Tencent was renewed for another three years, maintaining similar terms as previous agreements [11].