DouYu International Holdings Ltd. CEO and founder Shaojie Chen said Aug. 13 that the upcoming era of 5G technology will usher in a "new dawn" for its e-sports and livestreaming platform.
Speaking on the company's first earnings call since its listing in July, Chen said the platform's overall monthly active users, or MAUs, have increased since its shift to the 4G network. The company expects more of the same with the arrival of 5G.
MAUs in the three months ended June 30 were up 32.6% to 162.8 million, compared to 122.8 million in the year-ago period. Mobile MAUs reached 50.6 million, an increase of 42.5% from 35.5 million in the second quarter of 2018.
"With 5G, we foresee a new slew of business opportunities for gaming and livestreaming, so we are actively investing in technology and preparing for this new dawn," Chen said,
DouYu's net income attributable to the company rose to 24.0 million Chinese yuan for the three months ended June 30, up from a net loss of 228.7 million yuan in the same period a year ago. Diluted net income per ordinary share was 0.82 yuan for the second quarter of 2019, compared to a net loss of 28.07 yuan in the same period a year ago.
Total net revenue for the second quarter increased by 133.2% to 1.87 billion yuan from 802.9 million yuan in the second quarter of 2018. DouYu's livestreaming revenue alone increased 156% to 1.71 billion yuan in the second quarter, due to the company's "efforts to cultivate users' paying habits."
"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," Chen said.
The Tencent Holdings Ltd.-backed company expects its total net revenue to be in the range of 1.95 billion yuan to 2 billion yuan in the third quarter, representing a year-over-year increase of 90.3% and 95.2%, respectively. Chen added that the company is looking to explore overseas markets like Japan, having expanded in locations outside China like India and Vietnam already.
As of Aug. 12, US$1 was equivalent to 7.06 Chinese yuan.