Mentioned in this article
- DouYu reported its Q3 2019 financial results, with total revenues for Q3 up 81.3% to ¥1.86B RMB ($261M USD) in Q3 2018.
- In total, DouYu generated a net loss of ¥165.4M ($23.2M) for the third quarter of 2019, compared with ¥220.5M ($31M) in the same period of 2018.
- The company’s quarterly average paying user count reached 7M in the third quarter of 2019, representing an increase of 66% from 4.2M in Q3 2018.
Last week, Chinese game-centric live-streaming platform DouYu reported its earnings for the third quarter. The company’s total net revenues for the third quarter of 2019 increased by 81.3% to ¥1.86B ($261M) from ¥1.02B ($144M) in the same period of 2018, primarily due to the increase in live-streaming revenues.
Approximately 89% of DouYu’s total revenues were live-streaming revenues, which increased by 83.0% to ¥1.66B ($233.4M) in the third quarter of 2019 from ¥908M ($128M) in the same period of 2018. According to the company, the increase in live-streaming revenues was attributed to growth in both the number of paying users and the average revenue per paying user in the period.
DouYu’s Q3 costs of revenues were up 59.4% to ¥1.54B ($217M). Costs were primarily driven by revenue-sharing fees and content costs, which increased by 66.0% to ¥1.31B ($184M) in the third quarter of 2019 from ¥789M ($111M) in the same period of 2018. The company partially attributes investments in esports-related content for the increases in content costs.
Including expenses of ¥526M ($73.9M) and other operating income of ¥11.8M ($1.7M), DouYu generated a net loss of ¥165.4M ($23.2M) for the third quarter of 2019, compared with ¥220.5M ($31M) in the same period of 2018, implying a net loss margin of 8.9% compared with 21.5% in the same period of 2018.
“Our user base, particularly our mobile MAUs, continued to expand as we took advantage of the continuous gamer and eSports population growth in China, summer holiday season, introduction of several new mobile phone models, and blockbuster game title launches,” commented DouYu CEO Shaojie Chen. “In addition, we made substantial improvements in both user engagement and monetization efficiency during the quarter by continuously enriching our content, enhancing user-streamer interactions, and upgrading our streamer management system.”
The live-streaming platform’s average monthly active users (MAUs) reached 163.6M in the third quarter of 2019, representing an increase of 14.7% from 142.7M in the third quarter of 2018. Average mobile MAUs accounted for 31.8% of total MAUs or 52.1M, representing an increase of 26.1% from 41.3M in the same period of last year.
Furthermore, DouYu’s quarterly average paying user count reached 7M in the third quarter of 2019, representing an increase of 66% from 4.2M in Q3 2018.
Note: The exchange rate used by DouYu for its financial report is the rate in effect as of September 27 at a rate of ¥7.1218 to $1.00. For the convenience of the reader, The Esports Observer used the same exchange rate for currency conversions in this article.
