Overview
China game live streaming platform's preliminary Q4 revenue declined 19% yr/yr
Preliminary Q4 adjusted net income turned positive, driven by cost optimization
Company attributed improved profitability to lower content and bandwidth costs
Outlook
Company did not provide specific financial guidance for the current or future periods in its press release
Result Drivers
LIVE STREAMING PRESSURE - Co said Q4 live streaming revenue fell due to fewer promotional activities and weaker consumer spending amid challenging macroeconomic conditions
COST OPTIMIZATION - Co attributed improved gross profit and margin to lower content and bandwidth costs from cost optimization efforts
REVENUE DIVERSIFICATION - Growth in voice-based social networking revenues and seasonal gaming membership helped offset live streaming decline
Company press release: ID:nPn3RZSVLa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | RMB 918.80 mln | ||
Q4 Adjusted Net Income | RMB 12.60 mln | ||
Q4 Net Income | RMB 1.40 mln | ||
Q4 Gross Profit | RMB 118 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Douyu International Holdings Ltd is $7.50, about 65.6% above its March 24 closing price of $4.53
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 18 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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