DouYu International Holdings Limited Reports Third Quarter 2024 Unaudited Financial Results

Core Insights - DouYu International Holdings Limited reported a significant decline in financial performance for Q3 2024, with total net revenues decreasing by 21.8% year-over-year to RMB1,063.1 million (US$151.5 million) from RMB1,359.2 million in Q3 2023 [1][2] - The company experienced a substantial drop in gross profit, which fell to RMB60.8 million (US$8.7 million) from RMB192.4 million in the same period last year, resulting in a gross margin of 5.7% compared to 14.2% in Q3 2023 [1][2] - DouYu's net income also decreased sharply, reporting RMB3.4 million (US$0.5 million) compared to RMB76.4 million in Q3 2023, while adjusted net loss was RMB39.8 million (US$5.7 million) compared to adjusted net income of RMB71.9 million in the same period last year [1][2] Financial Performance - Total net revenues for Q3 2024 were RMB1,063.1 million (US$151.5 million), down from RMB1,359.2 million in Q3 2023, marking a 21.8$107.2 million) from RMB1,151.0 million in Q3 2023, attributed to a decline in both the number of paying users and average revenue per paying user [2] - Innovative business, advertising, and other revenues increased by 49.4% to RMB311.0 million (US$44.3 million), accounting for 29.3$142.8 million) from RMB1,166.8 million in Q3 2023, with revenue-sharing fees and content costs down by 6.2% to RMB869.6 million (US$123.9 million) [2] - Bandwidth costs saw a significant reduction of 32.0$10.3 million) from RMB106.1 million in Q3 2023, primarily due to decreased peak bandwidth usage [2] - Sales and marketing expenses decreased by 11.9% to RMB79.3 million (US$11.3 million), while research and development expenses dropped by 42.0$6.2 million) [2] Strategic Initiatives - The interim management committee emphasized adapting operational strategies to enhance efficiency and maximize ROI while investing in streamer resources and new ventures [1] - The company aims to diversify revenue streams and has made progress in this area, with innovative business revenues showing significant growth [1][2] - DouYu continues to prioritize long-term growth and shareholder value amidst challenges in the macroeconomic environment and industry shifts [1]