Benzinga | May 18, 2021 11:19AM EDT

DouYu International Misses On Q1 Revenue

* Chinese game-centric live streaming platform DouYu International Holdings Ltd (NASDAQ: DOYU) reported a first-quarter FY21 revenue decline of 5.5% year-on-year to $328.564 million (RMB2.153 billion), missing the analyst consensus of $337.38 million.

* Average MAUs rose 21.3% Y/Y to 191.9 million, Average mobile MAUs rose 4.5% Y/Y to 59.1 million, and the quarterly average paying user count declined 7.9% Y/Y to 7.0 million.

* Live streaming revenues declined 5.4% Y/Y to $305.1 million (RMB1.999 billion) due to the reversion of paying users' consumption of the virtual items to the pre-pandemic level.

* Advertising and other revenues declined 6.6% Y/Y to $23.5 million (RMB154.1 million) due to the trend of game advertisers normalizing their marketing expenditures, which were relatively higher in the same period last year due to the pandemic.

* The gross margin contracted 920 basis points to 12.1% due to higher content costs for eSports tournaments and bandwidth costs and the revenue decline.

* Adjusted operating loss was $14 million (RMB91.8 million).

* The adjusted net loss was $10.8 million (RMB70.7 million).

* Adjusted EPS loss of $(0.01) beating the analyst consensus $(0.06) loss.

* It held $1.14 billion (RMB7.5 billion) in cash and equivalents.

* DouYu increased investments in content, as it remained focused on improving content production in both video and community businesses, VP Hao Cao said. The company continues to optimize the monetization capabilities and improve the monetization efficiency of its platform while striving to generate more long-term value for shareholders, Cao said.

* Price action: DOYU shares traded higher by 2.41% at $8.06 on the last check Tuesday.