DouYu Reports Unaudited Financial Results for Fourth Quarter and Full Year 2021

- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2021.

Fourth Quarter 2021 Financial and Operational Highlights

Total net revenues in the fourth quarter of 2021 increased by 2.6% to RMB2,327.9 million ( US$365 .3 million) from RMB2,269 .2 million in the same period of 2020.
Gross profit in the fourth quarter of 2021 increased by 34.3% to RMB244.7 million ( US$38 .4 million), from RMB182.2 million in the same period of 2020.
Net loss in the fourth quarter of 2021 was RMB193.2 million ( US$30.3 million ), compared with RMB228 .7 million in the same period of 2020.
Adjusted net loss ^[1] in the fourth quarter of 2021 was RMB112 .0 million ( US$17 .6 million), compared with RMB176.9 million in the same period of 2020.
Average mobile MAUs ^[2] in the fourth quarter of 2021 increased by 7.2% to 62.4 million from 58.2 million in the same period of 2020.
Quarterly average paying user ^[3] count in the fourth quarter of 2021 was 7.3 million, compared with 7.6 million in the same period of 2020.

Full Year 2021 Financial Highlights

Total net revenues for the full year of 2021 were RMB9,165.3 million ( US$1,438.2 million ), compared with RMB9,601.9 million in the same period of 2020.
Gross profit for the full year of 2021 was RMB1,089.9 million ( US$171.0 million ), compared with RMB1,560.3 million in the same period of 2020.
Net loss for the full year of 2021 was RMB620.2 million ( US$97.3 million ), compared with net income of RMB404.7 million in the same period of 2020.
Adjusted net loss for the full year of 2021 was RMB400.6 million ( US$62.9 million ), compared with adjusted net income of RMB541.6 million in the same period of 2020.

Mr. Shaojie Chen , Chief Executive Officer of DouYu, commented, "2021 was a year full of challenges. Facing a complex macro environment, we continued to implement our core strategy to further develop our game-centric content ecosystem for a wide array of game genres, invest in our premium quality content, and further refine our game operations. During the fourth quarter, we continued to grow our core operating metrics, as mobile MAU increased by 7.2% year over year to 62.4 million. Going forward, we will leverage our innovative interactive operations, as well as rich content across various formats including livestreaming, videos, graphics, and communities, to continue exploring new growth initiatives as we build on our leading position in the gaming livestreaming industry."

Mr. Hao Cao, Vice President of DouYu, commented, "In the fourth quarter of 2021, our total revenues were RMB2.33 billion and our gross profit was RMB244.7 million . During the quarter, we continued to develop synergies across our various content formats including livestreaming, video, text, graphics, and social communities. We maintained our investment in research and development as well as our production capabilities to continue generating high-quality content. Looking ahead, we will remain proactive in exploring additional avenues for growth and monetization to deliver greater long-term returns for our shareholders."

Fourth Quarter 2021 Financial Results

Total net revenues in the fourth quarter of 2021 increased by 2.6% to RMB2,327.9 million ( US$365 .3 million) from RMB2,269 .2 million in the same period of 2020.

Livestreaming revenues in the fourth quarter of 2021 increased by 6.7% to RMB2,209 .4 million ( US$346 .7 million) from RMB2,070.7 million in the same period of 2020. The increase was primarily due to organic growth in average revenues per paying user which benefited from the Company's implementation of more effective operational strategies.

Advertising and other revenues in the fourth quarter of 2021 were RMB118 .5 million ( US$18.6 million ), compared with RMB198 .5 million in the same period of 2020. The decrease was primarily due to the continued exploration of new commercialization models by using a portion of advertising traffic that could have been directly monetized, as well as the challenging macro environment.

Cost of revenues in the fourth quarter of 2021 was RMB2,083.2 million ( US$326 .9 million), compared with RMB2,087 .0 million in the same period of 2020.

Revenue sharing fees and content costs in the fourth quarter of 2021 decreased to RMB1,846 .9 million ( US$289 .8 million) from RMB1,850 .2 million in the same period of 2020. The decrease was primarily due to the decreased cost of broadcasting rights. Such decrease was partially offset by the increase in revenue sharing fees which is in line with the Company's increased livestreaming revenues.

Bandwidth costs in the fourth quarter of 2021 decreased by 1.7% to RMB167 .9 million ( US$26 .3 million) from RMB170 .7 million in the same period of 2020. The decrease was mainly due to lower bandwidth costs per unit as a result of improved procurement efficiency.

Gross profit in the fourth quarter of 2021 increased by 34.3% to RMB244 .7 million ( US$38 .4 million) from RMB182 .2 million in the same period of 2020. The increase was primarily due to higher revenues generated during the quarter.

Sales and marketing expenses in the fourth quarter of 2021 increased 34.3% to RMB229 .2 million ( US$36 .0 million) from RMB170 .7 million in the same period of 2020. The increase was mainly attributable to the increased cost of promotional channels for user acquisition.

Research and development expenses in the fourth quarter of 2021 increased 11.5% to RMB132 .6 million ( US$20 .8 million) from RMB118 .9 million in the same period of 2020. The increase was primarily attributable to increased technical staff costs as the Company continues to invest in product upgrades to support its game-centric content strategy.

General and administrative expenses in the fourth quarter of 2021 decreased 16.1% to RMB98 .8 million ( US$15 .5 million) from RMB117 .7 million in the same period of 2020, mainly due to decreased professional service fees.

Other operating income, net in the fourth quarter of 2021 was RMB13.9 million ( US$2 .2 million), compared with other operating loss of RMB7.3 million in the same period of 2020.

Loss from operations in the fourth quarter of 2021 was RMB201 .9 million ( US$31 .7 million), compared with RMB232 .4 million in the same period of 2020.

Adjusted loss from operations in the fourth quarter of 2021, which adds back share-based compensation expenses, was RMB168.7 million ( US$26 .5 million), compared with RMB199 .1 million in the same period of 2020.

Income tax expenses in the fourth quarter of 2021 and 2020 were nil due to the Company's cumulative net losses and the resulting tax loss carry forward.

Net loss in the fourth quarter of 2021 was RMB193 .2 million ( US$30 .3 million), compared with RMB228.7 million in the same period of 2020.

Adjusted net loss in the fourth quarter of 2021, which excludes share-based compensation expenses, share of income in equity method investments, impairment loss of investments, and expenses in connection with settlement of class action lawsuits, was RMB112 .0 million ( US$17 .6 million), compared with RMB176 .9 million in the same period of 2020.

Basic and diluted net loss per ADS ^[4] in the fourth quarter of 2021 were RMB0 .53 (US$0.08) and RMB0 .53 (US$0.08), respectively. Adjusted basic and diluted net loss per ADS in the fourth quarter of 2021 were RMB0 .29 (US$0.05) and RMB0 .29 (US$0.05), respectively.

Full Year 2021 Financial Results

Total net revenues for the full year of 2021 were RMB9,165.3 million ( US$1,438.2 million ), compared with RMB9,601.9 million in the same period of 2020. The decrease was primarily driven by the year-over-year decrease in livestreaming revenues and advertising and other revenues.

Gross profit for the full year of 2021 was RMB1,089.9 million ( US$171.0 million ), compared with RMB1,560.3 million in the same period of 2020.

Loss from operations for the full year of 2021 was RMB648.7 million ( US$101 .8 million), compared with income from operations of RMB262.1 million in the same period of 2020.

Adjusted operating loss for the full year of 2021, which adds back share-based compensation expenses, was RMB516.5 million ( US$81.1 million ), compared with adjusted operating income of RMB404.2 million in the same period of 2020.

Net loss for the full year of 2021 was RMB620.2 million ( US$97.3 million ), compared with net income of RMB404.7 million in the same period of 2020.

Adjusted net loss for the full year of 2021, which excludes share-based compensation expenses, share of loss (income) in equity method investments, impairment loss of investments, and settlement of class action lawsuits, was RMB400.6 million ( US$62.9 million ), compared with adjusted net income of RMB541.6 million in the same period of 2020.

Basic and diluted net loss per ADS for the full year of 2021 were RMB1.55 (US$0.24) and RMB1.55 (US$0.24), respectively. Adjusted basic and diluted net loss per ADS in the full year of 2021 were RMB0.88 (US$0.14) and RMB0.88 (US$0.14) , respectively.

Cash and cash equivalents, restricted cash and bank deposits

As of December 31, 2021 , the Company had cash and cash equivalents, restricted cash, short-term and long-term bank deposits of RMB6,643 million ( US$1,043 million ), compared with RMB7,622 million as of December 31, 2020 .

Share Repurchase Program

On August 30, 2021 , the Company announced that its board of directors had authorized a share repurchase program under which the Company may repurchase up to US$100 million of its ordinary shares in the form of ADSs during a period of up to 12 months commencing on August 30, 2021 . The Company expects to utilize existing funds to make repurchases under this program. As of December 31, 2021 , the Company had repurchased an aggregate of US$16.7 million ( RMB107 million ) worth of its ADSs under this program.

Conference Call Information

The Company will hold a conference call on Wednesday, March 16, 2022 , at 7:00 am Eastern Time (or 7:00 pm Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:                                                                        1-412-317-6061
United States Toll Free:                                                       1-888-317-6003
Mainland China Toll Free:                                                    4001-206115
Hong Kong Toll Free:                                                           800-963976
Singapore Toll Free:                                                             800-120-5863
Conference ID:                                                                     0616391

The replay will be accessible through March 23, 2022, by dialing the following numbers:

International:                                                                        1-412-317-0088
United States Toll Free:                                                       1-877-344-7529
Conference ID:                                                                     6855969

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.douyu.com/ .

^[1] "Adjusted net loss" is calculated as net loss before share-based compensation expenses, and share of loss in equity method investments, gain on disposal of investment or subsidiaries, impairment loss on investments and expenses in connection with settlement of class action lawsuits. For more information, please refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

^[2] Refers to the number of mobile devices that launched our mobile apps in a given period. Average mobile MAUs for a given period is calculated by dividing (i) the sum of active mobile users for each month of such period, by (ii) the number of months in such period.

^[3] "Quarterly average paying users" refers to the average paying users for each quarter during a given period of time calculated by dividing (i) the sum of paying users for each quarter of such period, by (ii) the number of quarters in such period. "Paying user" refers to a registered user that has purchased virtual gifts on our platform at least once during the relevant period.

^[4] Every ten ADSs represent one ordinary share.

About DouYu International Holdings Limited

Headquartered in Wuhan, China , DouYu International Holdings Limited (Nasdaq: DOYU) is a leading game-centric live streaming platform in China and a pioneer in the eSports value chain. DouYu operates its platform on both PC and mobile apps, through which users can enjoy immersive and interactive games and entertainment live streaming. DouYu's platform brings together a deep pool of top live streamers. By providing a sustainable streamer development system built on advanced technology infrastructure and capabilities, DouYu helps ensure a consistent supply of quality content. Through collaborations with a variety of participants across the eSports value chain, the Company has gained coveted access to a wide variety of premium eSports content, which further attracts viewers and enhances user experience. For more information, please see https://ir.douyu.com/ .

Use of Non-GAAP Financial Measures

Adjusted operating income (loss) is calculated as operating income (loss) adjusted for share-based compensation expenses. Adjusted net income (loss) is calculated as net income (loss) adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries and impairment loss on investments and expenses in connection with settlement of class action lawsuits. Adjusted net income (loss) attributable to DouYu is calculated as net income (loss) attributable to DouYu adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries, impairment loss of investments and expenses in connection with settlement of class action lawsuits. Adjusted basic and diluted net income per ordinary share is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The Company adjusted the impact of (i) share-based compensation expenses, (ii) share of income (loss) in equity method investments, (iii) gain on disposal of investment or subsidiaries, (iv) impairment loss of investments to understand and evaluate the Company's core operating performance and (v) expenses in connection with settlement of class action lawsuits. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with U.S. GAAP.

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6 .3726 to US$1.00 , the noon buying rate in effect on December 31, 2021 , in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on December 31, 2021 , or at any other rate.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's results of operations and financial condition; the Company's business strategies; general market conditions, in particular the game live streaming market; the ability of the Company to retain and grow active and paying users; changes in general economic and business conditions in China ; the impact of the COVID-19 to the Company's business operations and the economy in China and globally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to the Company; and assumptions underlying or related to any of the foregoing. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the Securities Exchange Commission. The announced results of the fourth quarter and full year 2021 are preliminary and subject to audit adjustments. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact

Lingling Kong
DouYu International Holdings Limited
Email: ir@douyu.tv
Phone: +1 (646) 224-6934

Robin Yang
ICR, LLC
Email: DouYu.IR@icrinc.com
Phone: +1 (646) 224-6934

Media Relations Contact

Lingling Kong
DouYu International Holdings Limited
Email: pr_douyu@douyu.tv
Phone: +1 (646) 308-1475

Edmond Lococo
ICR, LLC
Email: DouYu.PR@icrinc.com
Phone: +1 (646) 308-1475

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share and per ADS data)
	As of December 31	As of December 31
	2020	2021	2021
ASSETS	RMB	RMB	US$ ⁽¹⁾
Current assets:
Cash and cash equivalents	5,279,902	4,456,406	699,307
Restricted cash	11,875	10,703	1,680
Short-term bank deposits	2,230,229	2,076,355	325,825
Accounts receivable, net	199,744	191,389	30,033
Prepayments	66,257	80,717	12,666
Amounts due from related parties	9,045	37,159	5,831
Other current assets	236,704	376,367	59,060
Total current assets	8,033,756	7,229,096	1,134,402

Property and equipment, net	37,792	25,111	3,940
Intangible assets, net	141,672	161,540	25,349
Long-term bank deposits	100,000	100,000	15,692
Investments	500,659	491,425	77,115
Goodwill	12,933	12,637	1,983
Right-of-use assets, net	62,141	72,309	11,347
Other non-current assets	19,004	64,785	10,166
Total non-current assets	874,201	927,807	145,592
TOTAL ASSETS	8,907,957	8,156,903	1,279,994
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Accounts payable	986,073	824,128	129,324
Advances from customers	10,911	7,476	1,173
Deferred revenue	242,013	235,134	36,898
Accrued expenses and other current liabilities	384,041	458,328	71,922
Amounts due to related parties	223,525	293,508	46,058
Lease liabilities due within one year	36,281	30,417	4,773
Total current liabilities	1,882,844	1,848,991	290,148

Lease liabilities	16,952	31,278	4,908
Deferred revenue	30,779	18,045	2,832
Total non-current liabilities	47,731	49,323	7,740
TOTAL LIABILITIES	1,930,575	1,898,314	297,888



⁽¹⁾ Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the noon buying rate in effect on December 31, 2021, in the H.10 statistical release of the Federal Reserve Board.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except share, ADS, per share and per ADS data)
	As of December 31	As of December 31
	2020	2021	2021
	RMB	RMB	US$ ⁽¹⁾
SHAREHOLDERS' EQUITY
Ordinary shares	23	23	4
Treasury shares	(695,098)	(802,250)	(125,891)
Additional paid-in capital	10,486,398	10,618,538	1,666,280
Accumulated deficit	(2,863,219)	(3,368,132)	(528,533)
Accumulated other comprehensive income (loss)	10,911	(114,335)	(17,945)
Total DouYu Shareholders' Equity	6,939,015	6,333,844	993,915
Noncontrolling interests	38,367	(75,255)	(11,809)
Total Shareholders' Equity	6,977,382	6,258,589	982,106
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	8,907,957	8,156,903	1,279,994


⁽¹⁾ Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the noon buying rate in effect on December 31, 2021, in the H.10 statistical release of the Federal Reserve Board.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (All amounts in thousands, except share, ADS, per share and per ADS data)

	Three Months Ended				Year Ended
	Dec 31, 2020	Sep 30, 2021	Dec 31, 2021	Dec 31, 2021	Dec 31, 2020	Dec 31, 2021	Dec 31, 2021
	RMB	RMB	RMB	US$ ⁽¹⁾	RMB	RMB	US$ ⁽¹⁾
Net revenues	2,269,197	2,347,955	2,327,917	365,301	9,601,874	9,165,331	1,438,240
Cost of revenues	(2,087,022)	(2,069,476)	(2,083,223)	(326,903)	(8,041,529)	(8,075,421)	(1,267,210)
Gross profit	182,175	278,479	244,694	38,398	1,560,345	1,089,910	171,030
Operating income (expenses) ⁽²⁾
Sales and marketing expenses	(170,708)	(218,859)	(229,214)	(35,969)	(580,374)	(952,902)	(149,531)
General and administrative expenses	(117,699)	(86,521)	(98,756)	(15,497)	(375,936)	(375,976)	(58,999)
Research and development expenses	(118,879)	(123,165)	(132,574)	(20,804)	(416,273)	(490,019)	(76,895)
Other operating (expenses) income, net	(7,272)	25,811	13,909	2,183	74,299	80,325	12,605
Total operating expenses	(414,558)	(402,734)	(446,635)	(70,087)	(1,298,284)	(1,738,572)	(272,820)
(Loss) income from operations	(232,383)	(124,255)	(201,941)	(31,689)	262,061	(648,662)	(101,790)
Other expenses, net	(3,403)	(32,921)	(1,237)	(194)	(27,394)	(33,852)	(5,312)
Interest income, net	23,104	18,806	17,889	2,807	145,235	77,393	12,145
Gain on disposal of subsidiary	-	-	-	-	23,526	-	-
(Loss) income before income taxes and share of (loss) income in equity method investments	(212,682)	(138,370)	(185,289)	(29,076)	403,428	(605,121)	(94,957)
Income tax expense	-	-	-	-	-	-	-
Share of (loss) income in equity method investments	(15,982)	(5,161)	(7,937)	(1,245)	1,306	(15,128)	(2,374)
Net (loss) income	(228,664)	(143,531)	(193,226)	(30,321)	404,734	(620,249)	(97,331)
Less: Net loss attributable to non-controlling interest	(31,807)	(22,115)	(18,756)	(2,943)	(80,763)	(115,336)	(18,099)
Net (loss) income attributable to ordinary shareholders of the Company	(196,857)	(121,416)	(174,470)	(27,378)	485,497	(504,913)	(79,232)
Net (loss) income per ordinary share
Basic	(6.12)	(3.71)	(5.35)	(0.84)	15.19	(15.51)	(2.43)
Diluted	(5.95)	(3.71)	(5.35)	(0.84)	14.71	(15.51)	(2.43)
Net (loss) income per ADS ⁽³⁾
Basic	(0.61)	(0.37)	(0.53)	(0.08)	1.52	(1.55)	(0.24)
Diluted	(0.59)	(0.37)	(0.53)	(0.08)	1.47	(1.55)	(0.24)
Weighted average number of ordinary shares used in calculating net (loss) income per ordinary share
Basic	32,175,361	32,692,871	32,636,774	32,636,774	31,963,526	32,544,878	32,544,878
Diluted	33,110,583	32,692,871	32,636,774	32,636,774	33,012,682	32,544,878	32,544,878
Weighted average number of ADS used in calculating net (loss) income per ADS ⁽³⁾
Basic	321,753,609	326,928,712	326,367,743	326,367,743	319,635,264	325,448,779	325,448,779
Diluted	331,105,828	326,928,712	326,367,743	326,367,743	330,126,823	325,448,779	325,448,779


⁽¹⁾ Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the noon buying rate in effect on December 31, 2021, in the H.10 statistical release of the Federal Reserve Board.
⁽²⁾ Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows:

	Three Months Ended				Year Ended
	Dec 31, 2020	Sep 30, 2021	Dec 31, 2021	Dec 31, 2021	Dec 31, 2020	Dec 31, 2021	Dec 31, 2021
	RMB	RMB	RMB	US$ ⁽¹⁾	RMB	RMB	US$ ⁽¹⁾
Research and development expenses	5,504	5,449	5,444	854	22,157	21,661	3,399
Sales and marketing expenses	1,232	1,214	1,214	191	4,788	4,823	757
General and administrative expenses	26,506	26,610	26,604	4,175	115,210	105,655	16,580


⁽³⁾ Every ten ADSs represent one ordinary share.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share, ADS, per share and per ADS data)

	Three Months Ended				Year Ended
	Dec 31, 2020	Sep 30, 2021	Dec 31, 2021	Dec 31, 2021	Dec 31, 2020	Dec 31, 2021	Dec 31, 2021
	RMB	RMB	RMB	US$ ⁽¹⁾	RMB	RMB	US$ ⁽¹⁾
(Loss) income from operations	(232,383)	(124,255)	(201,941)	(31,689)	262,061	(648,662)	(101,790)
Add:
Share-based compensation expenses	33,242	33,273	33,262	5,220	142,155	132,139	20,736
Adjusted (loss) income from operations	(199,141)	(90,982)	(168,679)	(26,469)	404,216	(516,523)	(81,054)

Net (loss) income	(228,664)	(143,531)	(193,226)	(30,321)	404,734	(620,249)	(97,331)
Add:
Share-based compensation expenses	33,242	33,273	33,262	5,220	142,155	132,139	20,736
Share of (loss) income in equity method investments	15,982	5,161	7,937	1,245	(1,306)	15,128	2,374

Gain on disposal of subsidiary	-	-	-	-	(23,526)	-	-
Impairment loss of investment	2,500	32,357	1,297	204	19,517	33,654	5,281
Settlement of class action lawsuits	-	-	38,709	6,074	-	38,709	6,074
Adjusted net (loss) income ⁽²⁾	(176,940)	(72,740)	(112,021)	(17,578)	541,574	(400,619)	(62,866)

Net (loss) income attributable to DouYu	(196,857)	(121,416)	(174,470)	(27,378)	485,497	(504,913)	(79,232)
Add:
Share-based compensation expenses	33,242	33,273	33,262	5,220	142,155	132,139	20,736
Share of loss (income) in equity method investments	15,982	5,161	7,937	1,245	(1,306)	15,128	2,374
Gain on disposal of subsidiary	-	-	-	-	(23,526)	-	-
Impairment loss of investment	2,500	32,357	1,297	204	19,517	33,654	5,281
Settlement of class action lawsuits	-	-	38,709	6,074	-	38,709	6,074
Adjusted net (loss) income attributable to DouYu	(145,133)	(50,625)	(93,265)	(14,635)	622,337	(285,283)	(44,767)

Adjusted Net (loss) income per ordinary share
Basic	(4.51)	(1.55)	(2.86)	(0.45)	19.47	(8.77)	(1.38)
Diluted	(4.51)	(1.55)	(2.86)	(0.45)	19.47	(8.77)	(1.38)

Adjusted net (loss) income per ADS ⁽³⁾
Basic	(0.45)	(0.16)	(0.29)	(0.05)	1.95	(0.88)	(0.14)
Diluted	(0.45)	(0.16)	(0.29)	(0.05)	1.95	(0.88)	(0.14)

Weighted average number of ordinary shares used in calculating Adjusted net (loss) income per ordinary share
Basic	32,175,361	32,692,871	32,636,774	32,636,774	31,963,526	32,544,878	32,544,878
Diluted	32,175,361	32,692,871	32,636,774	32,636,774	31,963,526	32,544,878	32,544,878

Weighted average number of ADS used in calculating net (loss) income per ADS ⁽²⁾
Basic	321,753,609	326,928,712	326,367,743	326,367,743	319,635,264	325,448,779	325,448,779
Diluted	321,753,609	326,928,712	326,367,743	326,367,743	319,635,264	325,448,779	325,448,779


⁽¹⁾ Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the noon buying rate in effect on December 31, 2021, in the H.10 statistical release of the Federal Reserve Board. ⁽²⁾ The net tax impact to the non-GAAP adjustments is zero. ⁽³⁾ Every ten ADSs represent one ordinary share.

View original content: https://www.prnewswire.com/news-releases/douyu-reports-unaudited-financial-results-for-fourth-quarter-and-full-year-2021-301503863.html

SOURCE DouYu International Holdings Limited

News Provided by PR Newswire via QuoteMedia

gaming investing topic: gaming investing

GAMING00

NorthStar Gaming Announces Revocation of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") is pleased to announce that effective May 16, 2025, the Ontario Securities Commission has revoked the temporary management cease trade order ("MCTO") it had previously granted to the Company on May 8, 2025 under National Policy 12-203 Management Cease Trade Orders, as the Company successfully completed the filing of its annual audited financial statements, management's discussion and analysis, and related certifications for the year ended December 31, 2024 (collectively, the "Annual Filings") on May 14, 2025.

The revocation of the MCTO means members of management are no longer prevented from trading the Company's securities. All of the Annual Filings are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Reports Year-End 2024 Results

Annual Revenue Growth of 57%, Gross Margin up 91%

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three months and year ended December 31, 2024. The Company also announced that it will discuss the results on an investor webinar to be held Thursday, May 15, 2025 at 11:00am (please see below for details). All dollar figures are quoted in Canadian dollars.

"We delivered strong financial results in 2024, highlighted by 57% growth in revenue and a 91% increase in gross margin. At the same time, we held marketing expense to a 10% increase and reduced G&A expense, demonstrating the continually improving operating leverage built into our business model," said Michael Moskowitz, Chair and CEO of NorthStar. "Equally important, our team rolled out innovations in both our sportsbook and casino that have further differentiated NorthStar Bets as a premium offering and helped drive the retention of, and engagement with, our loyal customers."

Restatement of Results

The comparative results for the three months and twelve months ended December 31, 2023 have been restated in the financial statements and management's discussion & analysis ("FY2024 MD&A") for the year ended December 31, 2024 to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements (note 2 of the Financial Statements for the year ended December 31, 2024). The Company's payment processor deducted the additional merchant fee from the daily remittances to the Company, and the deductions were not accounted for by the Company. These additional fees were identified as part of the year-end reconciliation of the amount due from the payment processor, and the financial statements and FY2024 MD&A have been adjusted accordingly. These restatements did not impact the cash balances reported for the years ended December 31, 2022, 2023, or 2024. However, they did result in adjustments to the reported current asset balances for those periods.

Financial Highlights for the Fourth Quarter Ended December 31, 2024 ("Q4 2024"):

Total Wagers¹ at Northstarbets.ca were $303.0 million in Q4 2024, a 42% increase compared to $213.3 million in Q4 2023.
Gross Gaming Revenue² at Northstarbets.ca was $10.0 million in Q4 2024, a 31.6% increase from $7.6 million in Q4 2023.
Revenue² was $9.5 million in Q4 2024, a 51% increase from $6.3 million in Q4 2023. Revenue in Q4 2024 includes $1.5 million of managed services revenue, which compares to $0.2 million in Q4 2023.
Gross Margin was $3.6 million, a 71% increase from $2.1 million in Q4 2023, while the Gross Margin percentage increased to 38.1%, up from 33.6% in Q4 2023.
Profit/(loss) before marketing and other expenses¹ was $0.6 million in Q4 2024 compared to a loss of $2.5 million in Q4 2023, indicating that gross margin is now sufficient to cover the Company's overhead expenses.

Financial Highlights for the Year Ended December 31, 2024 ("FY 2024"):

Total Wagers² at Northstarbets.ca were $980.0 million in FY 2024, a 51% increase compared to $648.8 million in the year ended December 31, 2023.
Gross Gaming Revenue² at Northstarbets.ca was $34.0 million in FY 2024, a 51% increase from $22.5 million in FY 2023.
Revenue² was $29.6 million in FY 2024, a 57% increase from $18.8 million in FY 2023. Revenue in FY 2024 includes $2.3 million of managed services revenue, which compares to $0.5 million in FY 2023.³
Gross Margin was $10.5 million, marking a 91% increase from $5.5 million in FY 2023, with the Gross Margin increasing to 35.7%, up from 29.3% in FY 2023.
Profit/(loss) before marketing and other expenses¹ was $0.1 million in FY 2024 compared to a loss of $6.7 million in YTD 2023, an improvement of $6.8 million.

"Early in 2025, we completed our most significant fund-raising to date, with a $43.4 million debt financing. This capital gives us a long runway on which to continue our trajectory of growth in wagering, gross margins and improving operating leverage. This was a milestone event for our business," added Mr. Moskowitz.

2024 Operating Highlights:

Completed the inaugural Blackjack Championship tournament, an innovative online competition that helped drive the acquisition of new high-value players and engagement for existing customers while increasing Blackjack wagering activity.
Implemented a series of enhancements to the NorthStar Bets platform, highlighted by streamlined navigation in both the Casino and Sportsbook sections, a doubling of Casino game selection since the start of 2024, personalized prop bets and intelligent parlay suggestions.
Introduced the "NorthStar Elite" program and branded tables to help secure the loyalty and satisfaction of our most active players and reinforcing the Company's positioning as a premium offering.
Launched "Sports Insights 2.0," a robust suite of enhancements to our content vertical that includes a redesigned home page, comprehensive team and player statistics, injury and player news feeds, added coverage of popular sports and strengthened casino content.
Gained significant traction outside the Ontario market with managed services revenue from Northstarbets.com site, owned by the Abenaki Council of Wolinak, increasing from $0.5 million in FY 2023 to $2.3 million in FY 2024.
Outpaced the industry growth rates reported by iGaming Ontario in 2024 in both Total Wagers (51% for NorthStar vs. 33% for the industry) and Gross Gaming Revenue (51% for NorthStar vs. 31.5% for the industry).

Outlook

"We expect our consistent pattern of year-over-year revenue increases to continue throughout 2025, based on our ongoing success in attracting and engaging high-value players," said Mr. Moskowitz. "We will maintain disciplined control over costs so that incremental gross margin falls primarily to the bottom line. As we continue to focus on operational excellence, we remain confident that we have the capital necessary to reach profitability based on our current business platform."

FY 2024 Corporate Update Webinar

On May 15, 2025, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's FY 2024 Earnings, current operations and strategic priorities. All investors and other interested parties are invited to register for the webinar at the link below.

Date: Thursday, May 15, 2025
Time: 11:00 am EDT
Register: Webinar Registration

Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.

Extension of Strategic Marketing Agreement

The Company also announced that its wholly owned subsidiary, NorthStar Gaming (Ontario) Inc. ("NorthStar Ontario"), has extended its strategic partnership with Playtech Software Limited ("Playtech Software") through the renewal of their previously announced strategic marketing agreement. Under the agreement, Playtech Software contributes services designed to accelerate NorthStar Ontario's player acquisition strategy in the province. The agreement was first implemented in June 2023 and has since been renewed several times. Pursuant to the latest renewal, Playtech Software will reimburse marketing expenses valued at a total of up to $1.5 million over a 3-month period through to March 31, 2025. Playtech Software will be compensated through a share of revenue from the income generated in connection with the marketing initiatives to which it contributes. The Transaction between Playtech and NorthStar Ontario is exempted from Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions.

"We are very pleased to renew the marketing services agreement with Playtech Software," said Michael Moskowitz, Chair and CEO of NorthStar. "The agreement serves to extend our marketing budget and has contributed to our tremendous growth in Ontario. Playtech plc continues to be a valuable strategic partner and we look forward to further collaboration."

Continuous Disclosure

Further to a review by the staff of the Ontario Securities Commission (the "OSC") of the Company's continuous disclosure, the FY2024 MD&A includes enhanced disclosures with respect to:

the Company's regulatory framework, licensing regimes applicable to its business operations and the legal authorizations necessary to conduct its business operations;
specific risk factors relating to the Company's business operations which include risks relating to operating in a heavily regulated industry, cyber security risks and risks relating to conflicts of interest with respect to directors and officers of the Company; and
the relationship between the Abenaki Council of Wolinak and the Company as well as its subsidiary, Slapshot Media Inc.

Such amended disclosure is being included in the FY2024 MD&A to address comments received from the OSC on its management's discussion & analysis, for the period ended September 30, 2024, and to improve the Company's disclosure.

As a result of having to include such enhanced disclosure after the OSC review, the Company will be placed on the public list of Refilings and Errors in accordance with OSC Staff Notice 51-711 (Revised) - Refilings and Corrections of Errors for a period of three (3) years.

Additional Information

For additional information, please refer to the Company's condensed consolidated financial statements for the year ended December 31, 2024, and the corresponding FY2024 MD&A. These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.

About NorthStar

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-IFRS Financial Measures [/ Reconciliation of Non-IFRS Measures to IFRS Measures]

Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" "Total Wagers" and "Profit/(Loss) before marketing and other expenses" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.

Total Wagers

Total Wagers are calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.

Gross Gaming Revenue

Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

Reconciliation of Non-IFRS Measures to IFRS Measures

In Q4 2024, the Company reported $10.0 million of Gross Gaming Revenue ($34.0 million in FY 2024) and has provided a reconciliation to the most comparable IFRS financial measure (Revenue) as follows: $ Millions (unaudited)	Unaudited Three months ended		Year ended
	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Gross gaming revenue from wagered games	$10.0	$ 7.6	$ 34.0	$22.5
Bonuses, promotional costs and free bets	(2.0)	(1.5)	(6.7)	(4.2)
Sub-total Gaming revenue	8.0	6.1	27.3	18.3
Other revenue from managed services	1.5	0.2	2.3	0.5
Revenue	$ 9.5	$ 6.3	$ 29.6	$ 18.8

Operating Results

Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.

$ Millions (unaudited)	Unaudited Three months ended		Year ended
$ Millions (unaudited)	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Revenue	$ 9,478	$ 6,275	$ 29,556	$ 18,845
Cost of Revenues	5,868	4,167	19,013	13,317
Gross Margin	3,610	2,108	10,543	5,528
General and administrative expenses	3,033	4,452	10,453	12,277
Profit/(Loss) before marketing and other expenses (1)	577	(2,344)	90	(6,749)
Marketing	5,249	5,472	15,456	14,094
Loss before other expenses (1)	(4,672)	(7,816)	(15,366)	(20,843)
Other expenses	(1,070)	149	3,645	6,547
Net loss	$ (3,602)	$ (7,965)	$ (19,011)	$ (27,390)

(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.

Cautionary Note Regarding Forward-Looking Information and Statements

This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities, and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Company Contact:

Corey Goodman
Chief Development Officer 647-530-2387
investorrelations@northstargaming.ca

Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Announces Receipt of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces that its principal regulator, the Ontario Securities Commission, has granted its request for a management cease trade order ("MCTO") effective May 8, 2025.

As previously announced on April 29, 2025, the Company applied for the MCTO due to a delay in filing its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (the "Annual Filings") which were required to be filed by April 30, 2025.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Announces Delay of Annual Filings

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces an anticipated delay in the filing of its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (collectively, the "Annual Filings"). The Company does not expect to file its Annual Filings by the regular filing deadline of April 30, 2025, as required, due to an unanticipated delay relating to the audit of the Annual Filings. The Company is working diligently with its auditor to finalize the Annual Filings and expects to file the Annual Filings no later than May 15, 2025.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

DouYu Reports Unaudited Financial Results for Fourth Quarter and Full Year 2021

1. Roblox (NYSE:RBLX)

2. Take-Two Interactive Software (NASDAQ:TTWO)

3. Electronic Arts (NASDAQ:EA)

4. Tencent Holdings (OTC Pink:TCEHY,HKEX:0700)

5. Unity Software (NYSE:U)

6. Playtika (NASDAQ:PLTK)

7. Corsair Gaming (NASDAQ:CRSR)

8. Inspired Entertainment (NASDAQ:INSE)

9. PLAYSTUDIOS (NASDAQ:MYPS)

10. MotorSport Games (NASDAQ:MSGM)

Investor Insight

Overview

Financial Performance

Company Highlights

Key Brands

NorthStarBets.ca

NorthStarBets.com

Management Team

Michael Moskowitz – CEO and Chairman

Corey Goodman – Chief Development Officer, Counsel and Corporate Secretary

Chin Dhushenthen – Chief Financial Officer

Barry Shafran – Lead Director

Vic Bertrand – Director

Brian Cooper – Director

Sylvia Prentice – Director

Dean MacDonald – Director

Chris McGinnis – Director

Alex Latner – Director, General Counsel, Playtech

Mike Cormack – Head of Content & Integrations

Latest News

Latest Press Releases

Related News

TOP STOCKS