DouYu Reports a $9M Profit in Q3 2020 as Live-Streaming Revenues Increase by 41.3%
NASDAQ-traded Chinese game-centric live streaming platform DouYu International Holdings reported its financial results for the third quarter of 2020. The company generated net revenues of ¥2.55B RMB ($385M USD) for the period ended Sept. 30, which marks an increase of roughly 37% year-over-year compared to ¥1.86B ($281M) in Q3 2019.
DouYu’s major source of revenue came from its live-streaming segment, which was up 41.3% year-over-year to ¥2.35B ($355M) for Q3 2020, representing roughly 92% of the company’s total revenues. According to DouYu, this increase was primarily driven by the optimization of its platform’s interactive features and refinement of its event models to attract new paying customers.
In its earnings report, the company recorded 194M average monthly active users (MAUs) for the period, up 18.6% from 163.6 MAUs in the same period of 2019. Average mobile MAUs in the third quarter of 2020 increased by 14.4% to 59.6M from 52.1M in Q3 2019. Furthermore, the number of quarterly average paying users grew by 12.7% to 7.9M in the period.
In total, DouYu ended the third quarter of 2020 with a net profit of ¥59.6M ($9M), improving its quarterly result by ¥225M ($34M) from a ¥166M ($25.1M) loss in the same period of last year.
In October, DouYu agreed to merge with its Tencent Holdings-owned competitor Huya, which will acquire all outstanding shares of DouYu in a stock-for-stock merger at an exchange ratio of 0.73 shares of Huya per share of DouYu. The merger’s completion will result in DouYu becoming a privately-held and wholly-owned subsidiary of Huya, therefore, being delisted from the NasdaqGS. Tencent Holdings, which is the largest shareholder of both companies, will control 67.5% of the new company’s voting power once the merger is completed.
Note: The Esports Observer used the exchange rate in effect as of Nov. 12 at a rate of 6.62151 RMB to 1 USD for currency conversions in this article.