On August 16, Douyu (DOYU.US) released its financial report for the second quarter of 2021. In the second quarter of this year, Douyu's net profit was a loss of 182 million yuan, compared with a net profit of 319 million yuan in the same period last year.
In terms of revenue, Douyu's revenue in the second quarter was 2.337 billion yuan, down 6.8% year-on-year and 8.6% month-on-month.
Red Star Capital Bureau noted that the revenue composition of Douyu is mainly composed of two parts: live broadcasting and advertising, and these two parts have declined year-on-year. During the reporting period, Douyu Live's revenue was 2.178 billion yuan, down 6.8% year-on-year, and advertising and other revenue was 158 million yuan, down 15% year-on-year.
Douyu explained that the decrease in live broadcast revenue lies in the fact that the prevention and control of the new crown epidemic has achieved obvious results, the time of users has decreased, and the time spent at home has decreased, resulting in a decrease in income. However, the increase in the number of monthly active users on the mobile terminal of the Douyu platform and the increase in the company's sales and marketing initiatives have increased user engagement, offsetting some of the impact of the decline in revenue.
It is worth noting that Douyu specifically mentioned the overseas market in the financial report, saying that the number of users of its product Mildom in Japan has continued to grow, and it is expected that Mildom will generate large-scale revenue in the Japanese market in the future.
In terms of profitability, in the second quarter of 2021, the net loss of Douyu was 182 million yuan, from a net profit of 319 million yuan in the same period last year to a loss, down 157% year-on-year. In addition, the gross profit of Douyu was 307 million yuan, down 43.1% year-on-year and up 17.8% month-on-month; the gross profit margin was 13.1%.
According to the official Weibo of Douyu
As for the reason for the decline in gross profit, the Douyu financial report shows that it is due to the increase in content costs and the decrease in revenue.
Red Star Capital Bureau noted that with the year-on-year decline in live broadcast service revenue, Douyu's sales and marketing expenses showed an upward trend. In the second quarter of 2021, Douyu's sales and marketing expenses were 295 million yuan, up 107.6% year-on-year, Douyu explained, mainly due to the increase in promotional channels, activities and brand activities. In addition, Douyu's R&D expenditure was MOP123 million, up 29.6% year-on-year, and general affairs and administrative expenses were RMB103 million, up 29.1% year-on-year.
Although the book performance is lackluster, in terms of user data, Douyu still maintains a certain growth. According to the financial report, during the reporting period, the average number of monthly active users of Douyu mobile terminal reached 60.7 million, an increase of 3.9% year-on-year, a record high; but the average number of paid users declined to 7.2 million, down 5% year-on-year and up 2.8% month-on-month.
Chen Shaojie, founder and CEO of Douyu, said on the analyst conference call after the release of the financial report: "It is very gratifying that the core operating data of this quarter continues to maintain steady growth, and in the future, Douyu will continue to expand its influence in the upstream and downstream of the game industry chain, continue to deepen the live broadcast, video, graphic content and community ecology, and maintain the leading position in the industry." ”
Red Star News reporter Yu Yao Xie Yutong
Responsible editor Ren Zhijiang Editor Yang Cheng
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