DouYu Registers 17% Revenue Decline In Q1 Amid China's Live Streaming Crackdown

DouYu Registers 17% Revenue Decline In Q1 Amid China's Live Streaming Crackdown
  • DouYu International Holdings Limited DOYU  reported a first-quarter FY22 revenue decline of 16.6% to $283.3 million year-on-year, beating the consensus of $253.2 million.
  • HUYA Inc HUYA revenue missed the Q1 consensus amid China's live streaming crackdown and COVID resurgence.
  • Segments: DouYu's Livestreaming revenues decreased by 13.6% Y/Y to $272.5 million due to prudent operating strategies in anticipation of a tightening regulatory environment.
  • Advertising and other revenues declined by 55.6% Y/Y to $10.8 million due to the challenging macro environment and exploration of new commercialization models.
  • Gross margin rose by 150 bps to 13.6% due to significantly decreased copyright costs.
  • Adjusted loss per ADS of $(0.03) was in line with the consensus loss. 
  • DouYu held $996.2 million in cash and equivalents.
  • Drivers: DouYu's quarterly average mobile MAUs fell 6.8% Y/Y to 55.1 million. The quarterly average paying user count decreased 8.6% Y/Y to 6.4 million.
  • Price Action: DOYU shares closed higher by 2.7% at $1.52 on Tuesday.

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