Top Live Streaming Platform Douyu Reports 30.15% YoY Drop in 2021 Gross Profit

Douyu (DOYU: Nasdaq) (Chinese: 斗鱼), China's second-largest video-game streaming site after Huya (Chinese: 虎牙), has recently announced its financial results for the fourth quarter and the full year ended December 31, 2021, revealing a net loss of CNY 410 million (USD 65 million).

Total net revenue in Q4 2021 increased by 2.6% YoY to CNY 2,327.9 million from CNY 2,269.2 million.

The revenue growth was mainly driven by aYoY increase of 6.7% in the live streaming sector, from CNY 2,070.7 million in Q4 2020 to CNY 2,209.4 million, thanks to the company's implementation of more effective operational strategies.

Advertising and other revenues in the fourth quarter of 2021 were CNY 118.5 million (USD 18.6 million), compared with CNY 198.5 million in the same period of 2020.

The decrease was primarily due to the challenging macro environment and continued exploration of new commercialization models. This involves using a portion of the advertising traffic that could have been directly monetized.

On a full-year basis, Douyu's total revenue last year was CNY 9.165 billion, down 4.5% YoY owing to the decline in live streaming revenue, advertising and other revenue.

Consequently, Douyu reported a 30.15% YoY drop in gross profit, resulting in a net loss of CNY 620 million this year.

"During the fourth quarter, we continued to grow our core operating metrics, as mobile MAU increased by 7.2% year over year to 62.4 million." Shaojie Chen, Chief Executive Officer of Douyu, said. "Going forward, we will leverage our innovative interactive operations, as well as rich content across various formats including live streaming, videos, graphics, and communities, to continue exploring new growth initiatives as we build on our leading position in the gaming live streaming industry."

Douyu's main Chinese competitors include Bilibili Inc (BILI: NASDAQ), Huya Inc. (HUYA: NYSE) and Kuaishou Technology (1024: HK).