WUHAN, China, May 20, 2025 /PRNewswire/ — DouYu International Holdings Limited (Nasdaq: DOYU), a leading Chinese game-centric live streaming platform and key player in the esports ecosystem, reported mixed financial results for the first quarter of 2025. While total revenue declined year-over-year, the company showcased improved margins and progress in its strategic shift toward high-growth segments like voice-based social networking and game membership services.
Financial Snapshot: Balancing Costs and Innovation
- Revenue: Total net revenues fell 8.9% to RMB947.1 million ($130.5 million), down from RMB1.04 billion in Q1 2024, reflecting reduced livestreaming activity.
- Profitability: Gross profit rose 4.1% to RMB113.5 million ($15.6 million), with gross margin expanding to 12%, up from 10.5% a year earlier.
- Loss Reduction: Operating loss narrowed dramatically by 84.3% to RMB26.1 million ($3.6 million), while net loss decreased 9.5% to RMB79.6 million ($11 million). Adjusted net loss (non-GAAP) improved 75.6% to RMB20.9 million ($2.9 million).
“Our focus on sustainable growth is bearing fruit,” said CEO Simin Ren, emphasizing the company’s “cost reduction, efficiency improvement, and loss narrowing” strategy. “We’re strategically reallocating resources to higher-margin businesses while optimizing our traditional livestreaming operations.”
Shifting Dynamics: Voice & Memberships Drive Growth
DouYu’s pivot to newer revenue streams showed traction:
- Innovative business segments—including voice-based social networking and game memberships—surged 60.2% year-over-year to RMB382.6 million ($52.7 million), now representing 40.4% of total revenue versus 23% in Q1 2024.
- Voice-based social networking revenues alone hit RMB290.1 million, bolstered by targeted Lunar New Year campaigns that boosted user engagement and conversions.
CFO Hao Cao highlighted operational discipline: “Our cost optimization in bandwidth, content, and staffing has strengthened margins. While macroeconomic softness persists, we’re building financial resilience for long-term value creation.”
User Metrics Reflect Strategic Trade-Offs
- Mobile MAUs: Averaged 41.4 million, down 8.7% YoY due to reduced low-ROI content and fewer esports tournaments.
- Paying Users: Livestreaming-related paying users dipped to 2.9 million (from 3.6 million in Q1 2024), with ARPPU at RMB216, as the company pared back promotional incentives.
Cash Position and Outlook
DouYu’s cash reserves stood at RMB2.3 billion ($318.2 million) as of March 31, down from RMB4.47 billion in December 2024, largely due to a $300 million special dividend payout in February. Executives reiterated their commitment to balancing shareholder returns with investments in high-potential verticals, aiming to capitalize on China’s evolving digital entertainment landscape.
“The gaming live-streaming sector remains intensely competitive, but DouYu’s sharper focus on monetization and community-driven features could help it carve out a niche,” said Wei Zhang, a Shanghai-based tech analyst. “Their ability to sustain margin gains while navigating user acquisition challenges will be critical.”
For further details on non-GAAP measures and financial reconciliations, refer to DouYu’s investor relations site.
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SOURCE DouYu International Holdings Limited
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