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Douyu Reports Q1 Revenue of 1.04 Billion RMB, a Year-on-Year Decrease of 29.9%

June 6, 2024
in Technology
Douyu Reports Q1 Revenue of 1.04 Billion RMB, a Year-on-Year Decrease of 29.9%
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Douyu Reports Q1 Revenue of 1.04 Billion RMB, a Year-on-Year Decrease of 29.9%

On June 5, Douyu announced its financial data for the first quarter of 2024, with revenue of 1.0397 billion RMB, a year-on-year decrease of 29.9%. The net loss was 88 million RMB, compared to a net profit of 14.5 million RMB in the same period last year. The number of mobile monthly active users decreased from 50.2 million in the same period last year to 45.3 million, and the average number of paying users also decreased from 4.5 million to 3.4 million.

In terms of specific business areas, Douyu‘s revenue from advertising and other business activities reached 239 million RMB this quarter, contributing to 23% of the total income. Despite facing challenges from the macro environment and live broadcast business adjustments, Douyu showcased progress in its commercial transformation. By focusing on the game industry for revenue diversification, the company promoted the sale of game props, game advertising, and distribution services.

Collaboration with game manufacturers is a significant part of Douyu‘s new phase of commercialization. The platform is currently bridging the gap between manufacturers and gamers’ needs. By promoting game props through platform anchors, content creation, and operational activities, and developing a platform game membership business based on game props, Douyu has established a business model centered around game prop sales.

In other news, Douyu announced the extension of its strategic cooperation agreement with Tencent for another three years on June 4. This agreement originally came into effect on January 31, 2018, and was subsequently updated and re-signed on April 1, 2019. The renewed agreement largely mirrors the revised one from 2019, with the exception of the extended duration.

Douyu also addressed investigations into historical illegal activities of third-party anchors. The company has been in close communication with relevant departments, engaging in self-inspection and correction to maintain compliance and a healthy platform ecosystem. As disclosed in the financial report, Douyu has proactively refunded 111.7 million RMB related to such activities. Douyu emphasized its commitment to lawful and compliant operation, stating that this refund has not significantly impacted the company’s daily operations.

SEE ALSO: Li Auto Recalls Staff Amid Layoffs Impacting R&D and Testing

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