The company’s stock jumped 17% after it reported strong progress in moving beyond its legacy livestream gaming business, even as its quarterly loss swelled
Key Takeaways:
- DouYu’s fourth-quarter revenue sank by 12% and its net loss more than doubled as its monthly average users fell 14% to 44.5 million
- The company’s revenue from advertising and other sources rose 63.6% last year to make up 28% of its revenue as it diversifies from its original livestream gaming business
Its name means “fighting fish,” and these days DouYu International Holdings Ltd. (DOYU.US) may indeed be fighting a battle for survival as its livestreaming business that once lifted it to fame slips away. Its latest quarterly results released last week showed continuing declines in revenue during the fourth quarter, extending a string of declines dogging the company for the last four years. At the same time, its quarterly loss more than doubled, as the company fell into the red for the year.
But investors took heart in the company’s progress toward diversifying away from livestream gaming, which has come under pressure from stiff competition and government clampdowns to limit online time by minors. Some may also be betting DouYu’s days as a standalone company could be numbered as it becomes a potential merger or acquisition target, which would likely see it sold at a premium to its current share price.
Co-CEO Ren Simin said on the company’s earnings call that DouYu plans to allocate more resources to its newer businesses this year. “Our strategy is not about contraction, it’s about reallocating our resources from inefficient initiatives to high-value business segments,” she said.
While building up those business is a longer-term goal, reversing the company’s sliding revenue – which has been contracting since 2021 – is a more immediate objective. That slide continued in the fourth quarter, as the company’s revenue fell 12.3% to 1.14 billion yuan ($156 …
Full story available on Benzinga.com
The company’s stock jumped 17% after it reported strong progress in moving beyond its legacy livestream gaming business, even as its quarterly loss swelled
Key Takeaways:
- DouYu’s fourth-quarter revenue sank by 12% and its net loss more than doubled as its monthly average users fell 14% to 44.5 million
- The company’s revenue from advertising and other sources rose 63.6% last year to make up 28% of its revenue as it diversifies from its original livestream gaming business
Its name means “fighting fish,” and these days DouYu International Holdings Ltd. (DOYU.US) may indeed be fighting a battle for survival as its livestreaming business that once lifted it to fame slips away. Its latest quarterly results released last week showed continuing declines in revenue during the fourth quarter, extending a string of declines dogging the company for the last four years. At the same time, its quarterly loss more than doubled, as the company fell into the red for the year.
But investors took heart in the company’s progress toward diversifying away from livestream gaming, which has come under pressure from stiff competition and government clampdowns to limit online time by minors. Some may also be betting DouYu’s days as a standalone company could be numbered as it becomes a potential merger or acquisition target, which would likely see it sold at a premium to its current share price.
Co-CEO Ren Simin said on the company’s earnings call that DouYu plans to allocate more resources to its newer businesses this year. “Our strategy is not about contraction, it’s about reallocating our resources from inefficient initiatives to high-value business segments,” she said.
While building up those business is a longer-term goal, reversing the company’s sliding revenue – which has been contracting since 2021 – is a more immediate objective. That slide continued in the fourth quarter, as the company’s revenue fell 12.3% to 1.14 billion yuan ($156 …
Full story available on Benzinga.com
The company’s stock jumped 17% after it reported strong progress in moving beyond its legacy livestream gaming business, even as its quarterly loss swelled
Key Takeaways:
DouYu’s fourth-quarter revenue sank by 12% and its net loss more than doubled as its monthly average users fell 14% to 44.5 million
The company’s revenue from advertising and other sources rose 63.6% last year to make up 28% of its revenue as it diversifies from its original livestream gaming business
Its name means “fighting fish,” and these days DouYu International Holdings Ltd. (DOYU.US) may indeed be fighting a battle for survival as its livestreaming business that once lifted it to fame slips away. Its latest quarterly results released last week showed continuing declines in revenue during the fourth quarter, extending a string of declines dogging the company for the last four years. At the same time, its quarterly loss more than doubled, as the company fell into the red for the year.
But investors took heart in the company’s progress toward diversifying away from livestream gaming, which has come under pressure from stiff competition and government clampdowns to limit online time by minors. Some may also be betting DouYu’s days as a standalone company could be numbered as it becomes a potential merger or acquisition target, which would likely see it sold at a premium to its current share price.
Co-CEO Ren Simin said on the company’s earnings call that DouYu plans to allocate more resources to its newer businesses this year. “Our strategy is not about contraction, it’s about reallocating our resources from inefficient initiatives to high-value business segments,” she said.
While building up those business is a longer-term goal, reversing the company’s sliding revenue – which has been contracting since 2021 – is a more immediate objective. That slide continued in the fourth quarter, as the company’s revenue fell 12.3% to 1.14 billion yuan ($156 …Full story available on Benzinga.com Read MoreAsia, contributors, DOYU, Equities, M&A, TCEHY, Opinion, TCEHY, DOYU, M&A, Equities, Asia, Opinion, Benzinga Asia
