DouYu Stock Tumbles 11% Despite Strong Revenue Growth, Income
DouYu International Holdings Ltd. shares sank 11 percent Tuesday, to $8.88 per share, after the company released its quarterly earnings, its first as a publicly traded company.
The Wuhan-based company said in its financial statement for the second quarter that its revenue reached $272.8 million, representing a 133 percent increase year-over-year. DouYu's net income was $3.4 million, or 13 cents per share, in contrast to net loss of $33 million last year.
The leading game-centric livestreaming platform in China provides content in a variety of genres, including gaming, sports, cooking and entertainment. DouYu also hosts virtual game tournaments that draws hundreds of thousands of arcade fans.
"Our second quarter results demonstrated robust growth," Shaojie Chen, the chief executive officer of DouYu said in a statement today.
Chen continued. "We are convinced of the growth potential in China's eSports market. Going forward, we will continue to focus on building a game-centric premium content ecosystem while strategically improving our monetization efficiency across all content genres."
The company also reported it had 162.8 million average monthly active users, up 33 percent year-over-year.
DouYu completed its initial public offering in July, raising $775 million. The company sold 67.4 million of its ADSs at the price of $11.50 each. In its statement today, it said the total proceeds from its IPO were $489.9 million after deducting all expenses.
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