DouYu International Holdings Limited Reports Unaudited Financial Results For Fourth Quarter and Full Year 2020

 
 

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, 2020 .

 

  Fourth Quarter 2020 Financial and Operational Highlights  

 
  • Total net revenues in the fourth quarter of 2020 increased by 10.0% to RMB2,269.2 million ( US$347.8 million ) from RMB2,062.9 million in the same period of 2019.
  •  
  • Gross profit in the fourth quarter of 2020 was RMB182.2 million ( US$27.9 million ), compared with RMB375.2 million in the same period of 2019.
  •  
  • Net loss in the fourth quarter of 2020 was RMB228.7 million ( US$35.0 million ), compared with a net income of RMB157.4 million in the same period of 2019.
  •  
  • Adjusted net loss in the fourth quarter of 2020 was RMB176.9 million ( US$27.1 million ), compared with an adjusted net income of RMB186.4 million in the same period of 2019.
  •  
  • Average MAUs in the fourth quarter of 2020 increased by 5.2% to 174.4 million from 165.8 million in the same period of 2019.
  •  
  • Average mobile MAUs in the fourth quarter of 2020 increased by 6.9% to 58.2 million from 54.4 million in the same period of 2019.
  •  
  • Quarterly average paying user count in the fourth quarter of 2020 increased by 4.6% to 7.6 million from 7.3 million in the same period of 2019.
  •  

  Full Year 2020 Financial Highlights  

 
  • Total net revenues for the full year of 2020 increased by 31.8% to RMB9,601.9 million ( US$1,471.6 million ) from RMB7,283.2 million in the same period of 2019.
  •  
  • Gross profit for the full year of 2020 increased by 30.4% to RMB1,560.3 million ( US$239.1 million ) from RMB1,196.2 million in the same period of 2019, implying a gross margin of 16.3% in the full year of 2020.
  •  
  • Net income for the full year of 2020 increased by 1,113.7% to RMB404.7 million ( US$62.0 million ) from RMB33.3 million in the same period of 2019, implying a net margin of 4.2% in the full year of 2020.
  •  
  • Adjusted net income for the full year of 2020 increased by 56.3% to RMB541.6 million ( US$83.0 million ) from RMB346.4 million in the same period of 2019, implying an adjusted net margin of 5.6%.
  •  

Mr. Shaojie Chen , Chief Executive Officer of DouYu, commented, "As a leading game-centric live streaming platform in China , we continued to deliver strong operational results as our average mobile MAUs increased by 6.9% year over year to 58.2 million in the fourth quarter. Additionally, by the end of 2020, the improvements we had made to our video and community segments enabled us to establish a fully integrated content ecosystem on top of our leading live streaming business. This improvement has laid a solid foundation for us to further develop our diversified and integrated game-centric content platform."

 

Mr. Hao Cao, Vice President of DouYu, commented, "We maintained our strong financial performance in the full year of 2020 as our total net revenues increased by 32% year over year to RMB 9.6 billion . Meanwhile, adjusted net income was RMB 541.6 million and adjusted net margin was 5.6%, representing an increase of approximately 80 basis points from last year. Looking ahead, we will continue to explore improvements for our platform's monetization capabilities, enhance our monetization efficiency, and further utilize our operating leverage to bring more long-term value to our shareholders."

 

  Fourth Quarter 2020 Financial Results  

 

  Total net revenues in the fourth quarter of 2020 increased by 10.0% to RMB2,269.2 million ( US$347.8 million ) from RMB2,062.9 million in the same period of 2019, primarily driven by the increase in live streaming revenues.

 

  Live streaming revenues in the fourth quarter of 2020 increased by 9.4% to RMB2,070.7 million ( US$317.3 million ) from RMB1,892.5 million in the same period of 2019. This increase was primarily attributable to an increase in paying users and ARPPU driven by improved user paying experience, which resulted from the Company's ongoing product refinement efforts, as well as the Company's cultivation of user paying habits through expansion of paying scenarios.

 

  Advertising and other revenues in the fourth quarter of 2020 increased by 16.5% to RMB198.5 million ( US$30.4 million ) from RMB170.4 million in the same period of 2019, primarily attributable to the Company's enhanced brand recognition and the corresponding increase in advertising demand for the Company's competitive advertising and promotion solutions.

 

  Cost of revenues in the fourth quarter of 2020 increased by 23.7% to RMB2,087.0 million ( US$319.9 million ) from RMB1,687.7 million in the same period of 2019, primarily due to the increase in revenue sharing fees and content costs.

 

  Revenue sharing fees and content costs in the fourth quarter of 2020 increased by 25.6% to RMB1,850.2 million ( US$283.6 million ) from RMB1,473.3 million in the same period of 2019. This increase was primarily attributable to increased investments in the broadcasting rights for eSports tournaments and the in-house production of proprietary events, increased revenue sharing fees, which was in line with the Company's total revenue growth, and increased investments in quality streamers in the oversea market.

 

  Bandwidth costs in the fourth quarter of 2020 increased by 12.7% to RMB170.7 million ( US$26.2 million ) from RMB151.4 million in the same period of 2019, primarily due to the increase in high-quality viewing options, such as 4K high-definition video, offered on the Company's platform, which led to higher user engagement.

 

  Gross profit in the fourth quarter of 2020 was RMB182.2 million ( US$27.9 million ), compared with RMB375.2 million in the same period of 2019, which was due to the increase in revenue sharing fees and content costs as a percentage of total revenues.

 

  Sales and marketing expenses in the fourth quarter of 2020 increased by 27.3% to RMB170.7 million ( US$26.2 million ) from RMB134.1 million in the same period of 2019, primarily attributable to the increase in promotional activities on key eSports tournaments and in prizes for the Company's self-produced events.

 

  Research and development expenses in the fourth quarter of 2020 increased by 18.6% to RMB118.9 million ( US$18.2 million ) from RMB100.2 million in the same period of 2019, mainly due to the Company's application upgrades and video-related technology improvements.

 

  General and administrative expenses in the fourth quarter of 2020 increased by 54.0% to RMB117.7 million ( US$18.0 million ) from RMB76.4 million in the same period of 2019, mainly due to the increase in professional service fees related to the Company's potential merger with Huya.

 

  Other operating loss, net in the fourth quarter of 2020 was RMB7.3 million ( US$1.1 million ), compared with other operating income of RMB59.7 million in the same period of 2019.

 

  Loss   from operations in the fourth quarter of 2020 was RMB232.4 million ( US$35.6 million ), compared with an operating income of RMB124.1 million in the same period of 2019.

 

  Adjusted operating loss   [1]   in the fourth quarter of 2020, which adds back share-based compensation expenses, was RMB199.1 million ( US$30.5 million ), compared with an adjusted operating income of RMB141.5 million in the same period of 2019.

 

  Income tax expenses in the fourth quarter of 2020 and 2019 were nil due to the Company's cumulative net losses and the resulting tax loss carry forward.

 

  Net loss in the fourth quarter of 2020 was RMB228.7 million ( US$35.0 million ), compared with a net income of RMB157.4 million in the same period of 2019.

 

  Adjusted net loss in the fourth quarter of 2020, which excludes share-based compensation expenses, share of income in equity method investments, and impairment loss of investments, was RMB176.9 million ( US$27.1 million ), compared with an adjusted net income of RMB186.4 million in the same period of 2019, implying an adjusted net loss margin of 7.8% for the fourth quarter of 2020.

 

  Basic and diluted net loss per ADS   [2]   in the fourth quarter of 2020 were RMB0.61   (US$0.09) and RMB0 .59 (US$0.09) respectively. Adjusted basic and diluted net loss per ADS in the fourth quarter of 2020 were RMB0.45   (US$0.07) and RMB0.45   (US$0.07) respectively.

 

  Full Year 2020 Financial Results  

 

  Total net revenues for the full year of 2020 increased by 31.8% to RMB9,601.9 million ( US$1,471.6 million ) from RMB7,283.2 million in the same period of 2019, primarily driven by a 33.8% year-over-year increase in live streaming revenues.

 

  Gross profit for the full year of 2020 increased by 30.4% to RMB1,560.3 million ( US$239.1 million ) from RMB1,196.2 million in the same period of 2019. Gross margin in the full year of 2020 was 16.3%.

 

  Income   from operations for the full year of 2020 was RMB262.1 million ( US$40.2 million ), compared with a loss from operations of RMB131.7 million in the same period of 2019.

 

  Adjusted operating income for the full year of 2020, which adds back share-based compensation expenses, increased by 154.0% to RMB404.2 million ( US$62.0 million ) from RMB159.1 million in the same period of 2019.

 

  Net income for the full year of 2020 increased by 1,113.7% to RMB404.7 million ( US$62.0 million ) from RMB33.3 million in the same period of 2019.

 

  Adjusted net income for the full year of 2020, which excludes share-based compensation expenses, share of loss (income) in equity method investments, and impairment loss of investments, increased by 56.3% to RMB541.6 million ( US$83.0 million ) from RMB346.4 million in the same period of 2019, implying an adjusted net margin of 5.6% for the full year of 2020.

 

  Basic and diluted net income per ADS for the full year of 2020 were RMB1 .52 (US$0.23) and RMB1 .47 (US$0.23) respectively. Adjusted basic and diluted net income per ADS in the full year of 2020 were RMB1.95   (US$0.30) and RMB1.95   (US$0.30) respectively.

 

  Conference Call Information  

 

The Company will hold a conference call on Tuesday, March 23, 2021 , at 8:00 am Eastern Time (or 8:00 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:  

 
 

  3971814  

 
 
 

The replay will be accessible through March 30, 2021, by dialing the following numbers:

 
 
      
 

  International:  

 
 

  1-412-317-0088  

 
 

  United States Toll Free:  

 
 

  1-877-344-7529  

 
 

  Conference ID:  

 
 

  10153048  

 
 
 

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 operating income" is defined as operating income adding back share-based compensation expenses. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.  

 
 

  [2] 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 is calculated as net 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. Adjusted net income attributable to DouYu is calculated as net income attributable to DouYu adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries and impairment loss of investments. 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 and (iv) impairment loss of investments to understand and evaluate the Company's core operating performance. 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 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 RMB6.5250 to US$1.00 , the noon buying rate in effect on December 31, 2020 , 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, 2020 , 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. 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. 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.

 

In addition to factors previously disclosed in Huya and DouYu's documents filed with the SEC, the following factors, among others, could cause actual results to differ materially from forward-looking statements and information or historical performance: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of Huya and DouYu to terminate the definitive merger agreement between Huya and DouYu; the outcome of any legal proceedings that may be instituted against Huya, DouYu or their respective shareholders or directors; the ability to obtain regulatory approvals and meet other closing conditions to the merger, including the risk that regulatory approvals required for the merger are not obtained or are obtained subject to conditions that are not anticipated or that are material and adverse to Huya's or DouYu's business; a delay in closing the merger; the ability to obtain approval by DouYu's shareholders on the expected terms and schedule; business disruptions from the proposed merger that will harm Huya's or DouYu's business, including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger; certain restrictions during the pendency of the merger that may impact Huya's or DouYu's ability to pursue certain business opportunities or strategic transactions; the ability of Huya or DouYu to retain and hire key personnel; uncertainty as to the long-term value of the Class A ordinary shares of Huya following the merger; the continued availability of capital and financing following the merger; the business, economic and political conditions in the markets in which Huya and DouYu operate; changes in Huya's or DouYu's anticipated revenue and income; changes in DouYu's operating or other expenses; the degree to which Huya or DouYu encounters competition; and general political, economic and market conditions.

 

  Investor Relations Contact
 

 

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

 

  Xinran Rao  
ICR, Inc.
Email: DouYu.IR@icrinc.com  
Phone: +1 (646) 224-6934

 

  Media Relations Contact  

 

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

 

  Edmond Lococo  
ICR, Inc.
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   

 
 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

   ASSETS   

 

   Current assets   

 
 
 
 
 

  Cash and cash equivalents  

 
 

  8,091,990  

 
 

  5,279,902  

 
 

  809,180  

 
 

  Restricted cash  

 
 

  42,903  

 
 

  11,875  

 
 

  1,820  

 
 

  Short-term bank deposits  

 
 

  -  

 
 

  2,230,229  

 
 

  341,798  

 
 

  Account receivables, net   (2)   

 
 

  188,100  

 
 

  199,744  

 
 

  30,612  

 
 

  Prepayment  

 
 

  50,304  

 
 

  66,257  

 
 

  10,154  

 
 

  Amounts due from related parties  

 
 

  24,044  

 
 

  9,045  

 
 

  1,386  

 
 

  Other current assets  

 
 

  204,310  

 
 

  236,704  

 
 

  36,276  

 
 

   Total current assets   

 
 

   8,601,651   

 
 

   8,033,756   

 
 

   1,231,226   

 
 
 
 
 
 

  Property and equipment, net  

 
 

  38,909  

 
 

  37,792  

 
 

  5,792  

 
 

  Intangible assets, net  

 
 

  198,057  

 
 

  141,672  

 
 

  21,712  

 
 

  Long-term bank deposits  

 
 

  -  

 
 

  100,000  

 
 

  15,326  

 
 

  Investments  

 
 

  225,534  

 
 

  500,659  

 
 

  76,729  

 
 

  Goodwill  

 
 

  30,973  

 
 

  12,933  

 
 

  1,982  

 
 

  Right-of-use assets, net (3)  

 
 

   -   

 
 

  62,141  

 
 

  9,524  

 
 

  Other non-current assets  

 
 

  8,547  

 
 

  19,004  

 
 

  2,912  

 
 

   Total non-current assets   

 
 

   502,020   

 
 

   874,201   

 
 

   133,977   

 
 

   TOTAL ASSETS   

 
 

   9,103,671   

 
 

   8,907,957   

 
 

   1,365,203   

 
 
 
 
 
 
 
 
 
 

   LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY   

 

   LIABILITIES   

 

   Current liabilities   

 
 
 
 
 
 

  Accounts Payable  

 
 

  890,039  

 
 

  986,073  

 
 

  151,122  

 
 

  Advances from customers  

 
 

  17,135  

 
 

  10,911  

 
 

  1,672  

 
 

  Deferred revenue  

 
 

  195,983  

 
 

  242,013  

 
 

  37,090  

 
 

  Accrued expenses and other current liabilities  

 
 

  392,347  

 
 

  384,041  

 
 

  58,857  

 
 

  Amounts due to related parties  

 
 

  298,733  

 
 

  223,525  

 
 

  34,257  

 
 

  Lease liabilities due within one year (3)  

 
 

  -  

 
 

  36,281  

 
 

  5,560  

 
 

   Total current liabilities   

 
 

   1,794,237   

 
 

   1,882,844   

 
 

   288,558   

 
 
 
 
 
 

  Deferred revenue  

 
 

  46,070  

 
 

  30,779  

 
 

  4,717  

 
 

  Lease liabilities (3)  

 
 

   -   

 
 

  16,952  

 
 

  2,598  

 
 

   Total non-current liabilities   

 
 

   46,070   

 
 

   47,731   

 
 

   7,315   

 
 

   TOTAL LIABILITIES   

 
 

   1,840,307   

 
 

   1,930,575   

 
 

   295,873   

 
 
 
 
 
 
 
 
 
 

   (1) Translations of 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 RMB6.5250 to US$1.00, the noon buying rate in effect on Dec 31, 2020, in the H.10 statistical release of the Federal Reserve Board  

 
 

   (2) The Group adopted Accounting Standards Update ("ASU") 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" since the beginning of the year ended December 31, 2020 with modified retrospective method, which did not have a significant impact on the consolidated financial statements  

 
 

   (3) The Group adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" and its amendments since the beginning of the year ended December 31, 2020 with modified retrospective method. The impact upon adoption of this standard is recognization of assets and liabilities amounting to RMB100.3 million and RMB81.9 million, respectively, beginning January 1, 2020 for leased offices with terms of more than 12 months  

 
 
 

 

 

 

 

 

 
 
                                                                         
 

   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   

 
 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 
 
 
 
 

   Shareholders' equity   

 
 
 
 
 

  Ordinary shares  

 
 

  22  

 
 

  23  

 
 

  4  

 
 

  Treasury stock  

 
 

  (168,567)  

 
 

  (695,098)  

 
 

  (106,528)  

 
 

  Additional paid-in capital  

 
 

  10,324,278  

 
 

  10,486,398  

 
 

  1,607,111  

 
 

  Accumulated deficit  

 
 

  (3,348,718)  

 
 

  (2,863,219)  

 
 

  (438,808)  

 
 

  Accumulated other comprehensive income  

 
 

  434,894  

 
 

  10,911  

 
 

  1,671  

 
 

   Total DouYu Shareholders' equity   

 
 

   7,241,909   

 
 

   6,939,015   

 
 

   1,063,450   

 
 

  Non-controlling interests  

 
 

  21,455  

 
 

  38,367  

 
 

  5,880  

 
 

   Total Shareholders' Equity   

 
 

   7,263,364   

 
 

   6,977,382   

 
 

   1,069,330   

 
 

   TOTAL LIABILITIES, CONVERTIBLE   

 
 
 
 
 

   REDEEMABLE PREFERRED SHARES   

 
 
 
 
 

   AND SHAREHOLDERS' EQUITY   

 
 

   9,103,671   

 
 

   8,907,957   

 
 

   1,365,203   

 
 
 
 
 
 

   (1) Translations of 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 RMB6.5250 to US$1.00,
the noon buying rate in effect on Dec 31, 2020, 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   

 
 
 

   December 31,   

 
 

   September 30,   

 
 

   December 31,   

 
 

   December 31,   

 
 

   December 31,   

 
 

   December 31,   

 
 

   December 31,   

 
 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 

   2020   

 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 
 

   RMB   

 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

   Net Revenues   

 
 

  2,062,902  

 
 

  2,546,489  

 
 

  2,269,197  

 
 

  347,770  

 
 

  7,283,230  

 
 

  9,601,874  

 
 

  1,471,552  

 
 

   Cost of revenues   

 
 

  (1,687,729)  

 
 

  (2,177,056)  

 
 

  (2,087,022)  

 
 

  (319,850)  

 
 

  (6,087,073)  

 
 

  (8,041,529)  

 
 

  (1,232,418)  

 
 

   Gross profit   

 
 

  375,173  

 
 

  369,433  

 
 

  182,175  

 
 

  27,920  

 
 

  1,196,157  

 
 

  1,560,345  

 
 

  239,134  

 
 

   Operating expenses (2)   

 
 
 
 
 
 
 
 
 

  Sales and marketing expenses  

 
 

  (134,118)  

 
 

  (160,251)  

 
 

  (170,708)  

 
 

  (26,162)  

 
 

  (598,695)  

 
 

  (580,374)  

 
 

  (88,946)  

 
 

  Research and development expense  

 
 

  (100,200)  

 
 

  (109,585)  

 
 

  (118,879)  

 
 

  (18,219)  

 
 

  (383,887)  

 
 

  (416,273)  

 
 

  (63,797)  

 
 

  General and administrative expenses  

 
 

  (76,433)  

 
 

  (94,187)  

 
 

  (117,699)  

 
 

  (18,038)  

 
 

  (446,143)  

 
 

  (375,936)  

 
 

  (57,615)  

 
 

  Other operating income, net  

 
 

  59,675  

 
 

  32,538  

 
 

  (7,272)  

 
 

  (1,114)  

 
 

  100,898  

 
 

  74,299  

 
 

  11,387  

 
 

   Total operating expenses   

 
 

  (251,076)  

 
 

  (331,485)  

 
 

  (414,558)  

 
 

  (63,533)  

 
 

  (1,327,827)  

 
 

  (1,298,284)  

 
 

  (198,971)  

 
 

   Income (loss) from operations   

 
 

  124,097  

 
 

  37,948  

 
 

  (232,383)  

 
 

  (35,613)  

 
 

  (131,670)  

 
 

  262,061  

 
 

  40,163  

 
 

  Other expenses, net  

 
 

  (7,900)  

 
 

  (5,591)  

 
 

  (3,403)  

 
 

  (522)  

 
 

  (22,882)  

 
 

  (27,394)  

 
 

  (4,198)  

 
 

  Foreign exchange gains  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  32,045  

 
 

  -  

 
 

  -  

 
 

  Interest Income, net  

 
 

  47,861  

 
 

  26,982  

 
 

  23,104  

 
 

  3,541  

 
 

  159,097  

 
 

  145,235  

 
 

  22,258  

 
 

  Gain on disposal of investment or
subsidiaries
 

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  23,526  

 
 

  3,606  

 
 

   Income (loss) before income taxes   

 
 

  164,058  

 
 

  59,339  

 
 

  (212,682)  

 
 

  (32,594)  

 
 

  36,590  

 
 

  403,428  

 
 

  61,829  

 
 

  Income tax expenses  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Share of income (loss) in equity
method investments
 

 
 

  (6,617)  

 
 

  264  

 
 

  (15,982)  

 
 

  (2,449)  

 
 

  (3,242)  

 
 

  1,306  

 
 

  200  

 
 

   Net income (loss)   

 
 

  157,441  

 
 

  59,603  

 
 

  (228,664)  

 
 

  (35,043)  

 
 

  33,348  

 
 

  404,734  

 
 

  62,029  

 
 

  Less: Net loss attributable to
noncontrolling interest
 

 
 

  (4,158)  

 
 

  (26,257)  

 
 

  (31,807)  

 
 

  (4,875)  

 
 

  (6,405)  

 
 

  (80,763)  

 
 

  (12,377)  

 
 

   Net income (loss) attributable to
DouYu
 
 

 
 

   161,599   

 
 

   85,860   

 
 

   (196,857)   

 
 

   (30,168)   

 
 

   39,753   

 
 

   485,497   

 
 

   74,406   

 
 

   Net income (loss) per ordinary share   

 
 
 
 
 
 
 
 
 

  Basic  

 
 

  4.95  

 
 

  2.68  

 
 

  (6.12)  

 
 

  (0.94)  

 
 

  1.32  

 
 

  15.19  

 
 

  2.33  

 
 

  Diluted  

 
 

  4.75  

 
 

  2.59  

 
 

  (5.95)  

 
 

  (0.91)  

 
 

  1.26  

 
 

  14.71  

 
 

  2.25  

 
 

   Net income (loss) per ADS (4)   

 
 
 
 
 
 
 
 
 

  Basic  

 
 

  0.50  

 
 

  0.27  

 
 

  (0.61)  

 
 

  (0.09)  

 
 

  0.13  

 
 

  1.52  

 
 

  0.23  

 
 

  Diluted  

 
 

  0.48  

 
 

  0.26  

 
 

  (0.59)  

 
 

  (0.09)  

 
 

  0.13  

 
 

  1.47  

 
 

  0.23  

 
 
 
 
 
 
 
 
 
 

  Weighted average number of ordinary shares used in calculating net income (loss) per ordinary share  

 
 
 
 
 

  Basic  

 
 

  32,649,653  

 
 

  32,001,509  

 
 

  32,175,361  

 
 

  32,175,361  

 
 

  19,254,661  

 
 

  31,963,526  

 
 

  31,963,526  

 
 

  Diluted  

 
 

  33,989,356  

 
 

  33,089,461  

 
 

  33,110,583  

 
 

  33,110,583  

 
 

  31,442,931  

 
 

  33,012,682  

 
 

  33,012,682  

 
 
 
 
 
 
 
 
 
 

  Weighted average number of ADS used in calculating net income (loss) per ADS (2)  

 
 
 
 
 

  Basic  

 
 

  326,496,531  

 
 

  320,015,091  

 
 

  321,753,609  

 
 

  321,753,609  

 
 

  192,546,612  

 
 

  319,635,264  

 
 

  319,635,264  

 
 

  Diluted  

 
 

  339,893,557  

 
 

  330,894,613  

 
 

  331,105,828  

 
 

  331,105,828  

 
 

  314,429,306  

 
 

  330,126,823  

 
 

  330,126,823  

 
 
 
 
 
 
 
 
 
 

   (1) Translations of 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 RMB6.5250 to US$1.00, the noon buying rate in effect on Dec 31, 2020, 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   

 
 
 

   December 31,   

 
 

   September 30,   

 
 

   December 31,   

 
 

   December 31,   

 
 

   December 31,   

 
 

   December 31,   

 
 

   December 31,   

 
 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 

   2020   

 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 
 

   RMB   

 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

  Research and development expenses  

 
 

  5,035  

 
 

  5,515  

 
 

  5,504  

 
 

  844  

 
 

  38,324  

 
 

  22,157  

 
 

  3,396  

 
 

  Sales and marketing expenses  

 
 

  2,620  

 
 

  1,234  

 
 

  1,232  

 
 

  189  

 
 

  18,374  

 
 

  4,788  

 
 

  734  

 
 

  General and administrative expenses  

 
 

  9,698  

 
 

  26,460  

 
 

  26,506  

 
 

  4,062  

 
 

  234,084  

 
 

  115,210  

 
 

  17,657  

 
 
 
 
 
 
 
 
 
 

   (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   

 
 
 

   December 31   ,   

 
 

   September 30,   

 
 

   December 31   ,   

 
 

   December 31   ,   

 
 

   December 31   ,   

 
 

   December 31   ,   

 
 

   December 31   ,   

 
 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 

   2020   

 
 

   2019   

 
 

   2020   

 
 

   2020   

 
 
 

   RMB   

 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

   RMB   

 
 

   RMB   

 
 

   US$ (1)   

 
 

   Income (loss) from operations   

 
 

  124,097  

 
 

  37,948  

 
 

  (232,383)  

 
 

  (35,613)  

 
 

  (131,670)  

 
 

  262,061  

 
 

  40,163  

 
 

  Add:  

 
 
 
 
 
 
 
 
 

  Share-based compensation expenses  

 
 

  17,353  

 
 

  33,209  

 
 

  33,242  

 
 

  5,095  

 
 

  290,782  

 
 

  142,155  

 
 

  21,787  

 
 

   Adjusted Operating income (loss)   

 
 

   141,450   

 
 

   71,157   

 
 

   (199,141)   

 
 

   (30,518)   

 
 

   159,112   

 
 

   404,216   

 
 

   61,950   

 
 
 
 
 
 
 
 
 
 

   Net income (loss)   

 
 

  157,441  

 
 

  59,603  

 
 

  (228,664)  

 
 

  (35,043)  

 
 

  33,348  

 
 

  404,734  

 
 

  62,029  

 
 

  Add:  

 
 
 
 
 
 
 
 
 

  Share-based compensation expenses  

 
 

  17,353  

 
 

  33,209  

 
 

  33,242  

 
 

  5,095  

 
 

  290,782  

 
 

  142,155  

 
 

  21,787  

 
 

  Share of loss (income) in equity method
investments
 

 
 

  6,617  

 
 

  (264)  

 
 

  15,982  

 
 

  2,449  

 
 

  3,242  

 
 

  (1,306)  

 
 

  (200)  

 
 

  Gain on disposal of investment or
subsidiaries
 

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  (23,526)  

 
 

  (3,606)  

 
 

  Impairment loss of investment  

 
 

  4,975  

 
 

  6,171  

 
 

  2,500  

 
 

  383  

 
 

  19,076  

 
 

  19,517  

 
 

  2,991  

 
 

   Adjusted net income (loss)   

 
 

   186,386   

 
 

   98,719   

 
 

   (176,940)   

 
 

   (27,116)   

 
 

   346,448   

 
 

   541,574   

 
 

   83,001   

 
 
 
 
 
 
 
 
 
 

   Net income (loss) attributable to
DouYu
 
 

 
 

  161,599  

 
 

  85,860  

 
 

  (196,857)  

 
 

  (30,168)  

 
 

  39,753  

 
 

  485,497  

 
 

  74,406  

 
 

  Add:  

 
 
 
 
 
 
 
 
 

  Share-based compensation expenses  

 
 

  17,353  

 
 

  33,209  

 
 

  33,242  

 
 

  5,095  

 
 

  290,782  

 
 

  142,155  

 
 

  21,787  

 
 

  Share of loss (income) in equity method
investments
 

 
 

 

 

  6,617  

 
 

  (264)  

 
 

  15,982  

 
 

  2,449  

 
 

 

 

  3,242  

 
 

  (1,306)  

 
 

  (200)  

 
 

  Gain on disposal of investment or
subsidiaries
 

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  (23,526)  

 
 

  (3,606)  

 
 

  Impairment loss of investment  

 
 

  4,975  

 
 

  6,171  

 
 

  2,500  

 
 

  383  

 
 

  19,076  

 
 

  19,517  

 
 

  2,991  

 
 

   Adjusted net income (loss)
attributable to DouYu
 
 

 
 

 

 

   190,544   

 
 

   124,976   

 
 

 

 

   (145,133)   

 
 

 

 

   (22,241)   

 
 

 

 

   352,853   

 
 

 

 

   622,337   

 
 

 

 

   95,378   

 
 
 
 
 
 
 
 
 
 

   Adjusted net income (loss) per
ordinary
 
   Share   

 
 
 
 
 
 
 
 
 

  Basic  

 
 

  5.84  

 
 

  3.91  

 
 

  (4.51)  

 
 

  (0.69)  

 
 

  17.58  

 
 

  19.47  

 
 

  2.98  

 
 

  Diluted  

 
 

  5.84  

 
 

  3.91  

 
 

  (4.51)  

 
 

  (0.69)  

 
 

  11.74  

 
 

  19.47  

 
 

  2.98  

 
 
 
 
 
 
 
 
 
 

   Adjusted net income (loss) per ADS (2)   

 
 
 
 
 
 
 
 
 

  Basic  

 
 

  0.58  

 
 

  0.39  

 
 

  (0.45)  

 
 

  (0.07)  

 
 

  1.76  

 
 

  1.95  

 
 

  0.30  

 
 

  Diluted  

 
 

  0.58  

 
 

  0.39  

 
 

  (0.45)  

 
 

  (0.07)  

 
 

  1.17  

 
 

  1.95  

 
 

  0.30  

 
 
 
 
 
 
 
 
 
 

   (1) Translations of 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 RMB6.5250 to US$1.00, the noon buying rate in effect on Dec 31, 2020, in the H.10 statistical release of the Federal Reserve Board.  

 
 

   (2) Every ten ADSs represent one ordinary share.  

 
 
 

 

 

 Cision View original content: https://www.prnewswire.com/news-releases/douyu-international-holdings-limited-reports-unaudited-financial-results-for-fourth-quarter-and-full-year-2020-301253545.html  

 

SOURCE DouYu International Holdings Limited

 
 

News Provided by PR Newswire via QuoteMedia

The Conversation (0)
Person holding virtual game icons over a smartphone screen.

Mobile Gaming Stocks: 10 Biggest Companies in 2025

According to market intelligence firm Newzoo, global gaming revenue came in at US$177.9 billion in 2024, with mobile gaming accounting for more than half of that amount at US$97.6 billion.

The firm states that the mobile gaming market has reached maturity but still achieved higher growth than the console and PC segments, with revenue up by 2.8 percent globally last year. The regions driving that growth are North America and Europe, where markets rebounded due to big releases and diversified revenue streams.

Mobile games are typically accessed through three core operating systems: Apple's (NASDAQ:AAPL) iOS, Microsoft's (NASDAQ:MSFT) Windows and Alphabet's (NASDAQ:GOOGL) Android. Notably, the iOS App Store generated nearly 37 percent of its revenue from mobile gaming apps in 2024, totaling US$3.83 billion. However, figures show that most mobile games on the market today are developed for Android, representing 75 percent of total mobile game downloads.

Keep reading...Show less
NorthStar Gaming Announces Revocation of Management Cease Trade Order

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

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$22.5
Bonuses, promotional costs and free bets(2.0)(1.5)(6.7)(4.2)
Sub-total Gaming revenue8.06.127.318.3
Other revenue from managed services1.50.22.30.5
Revenue$ 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
 Dec 31,
2024 
 Dec 31,
2023 
 Dec 31,
2024 
 Dec 31,
2023 
Revenue$ 9,478$ 6,275$ 29,556$ 18,845
Cost of Revenues5,8684,16719,01313,317
Gross Margin3,6102,10810,5435,528
General and administrative expenses3,0334,45210,45312,277
 Profit/(Loss) before marketing and other expenses (1) 577(2,344)90(6,749)
Marketing5,2495,47215,45614,094
Loss before other expenses (1) (4,672)(7,816)(15,366)(20,843)
Other expenses(1,070)1493,6456,547
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 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 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

Latest Press Releases

Related News

×