Tencent-backed Gaming Live Platform Douyu Soars 18% on Fourteen-fold Profits
The stock in DouYu International Holdings Ltd. (Nasdaq: DOYU) skyrocketed over 18% Tuesday morning when the company announced its four-digit bottom line growth in the first quarter.
The Wuhan-based gaming and eSports player said in a statement today that in the three months through March revenue has jumped to $321.1 million, up 53% year-over-year. Net income in the first quarter reached $35.9 million, or 11 cents per share, up 1314% from one year ago.
Over 7.6 million users paid for the service in Douyu in the first quarter, compared to 6 million in the corresponding period in 2019. Douyu's rival, HUYA Inc. (NYSE: HUYA) reported 6.1 million paying users in the first quarter on May 20.
Douyu said in the statement that its average monthly active users (MAUs) reached 158.1 million, down slightly from 159.2 million in 2019. Huya's MAUs reached 151.3 million, up 22% from one year ago.
"We believe that by leveraging our efficient operations and accelerating our resource deployment along with the upstream and downstream segments of the eSports value chain, our platform will continue to maintain a solid growth trajectory going forward," Shaojie Chen, the chief executive officer of Douyu, said in the statement.
Backed by Chinese tech giant Tencent Holdings Ltd. (HKEX: 0700), DouYu raised $775 million in its initial public offering in July 2019.
Internet giant Tencent played a key role in China's game live streaming industry; the company owns approximately 37.2 % of Douyu's shares and holds 50.1% voting power of Huya after a share transfer.
Guangzhou-based social media platform JOYY Inc. (Nasdaq: YY) said on April 3 that it had transferred 16.5 million shares of HUYA to Linen Investment Ltd., a wholly-owned subsidiary of Tencent for $262.6 million in cash.
Looking ahead, Douyu said it expects its total net revenues to be in the range of 2,360 million yuan to 2,410 million yuan ($337 million to $344 million) in the second quarter, up 26% to 29% year-over-year.
Shares in Douyu were trading at $8.17 per share, up 18% Tuesday morning.
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