Tencent-backed streaming site Douyu turns profitable but IPO still pending

Its rival went public one year ago and is also more profitable.

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Tencent-backed streaming site Douyu turns profitable but IPO still pending

Douyu, China’s largest game-centric streaming platform by user numbers, updated its initial public offering prospectus with financial results for the first quarter of the year.

Some key points are that Douyu turned profitable for the first time, and that it overtook competitor Huya in terms of monthly active users.

The prospectus states that Douyu booked RMB 1.5 billion (USD 221.9 million) in net revenue, which represented 123% year-on-year growth. This translated to a net income of RMB 18.2 million (USD 2.7 million), compared to a net loss of RMB 162.3 million in the same quarter last year.

The platform had 159.2 million monthly active users (MAU) on average during the first quarter of 2019, representing year-on-year growth of 25.7%.

The MAU count exceeded that of another game-centric streaming site, Huya, which is also backed by Tencent, making Douyu the largest site of its kind in China. Huya, which went public in the US one year ago, had 123.8 MAU in the first quarter of this year.

However, Douyu still lagged behind Huya in both revenue and profits.

Huya booked RMB 1.6 billion (USD 243.1 million) in net revenue in the first quarter of 2019, up 93.4% year-on-year and had a net income of RMB 63.5 million (USD 9.5 million) which was up 102.1%.

Douyu’s rapid growth in revenue and first-time profitability should bode well for its pending IPO.

But the renewed prospectus has yet to set a price for the American Depository Shares the company hopes to sell to investors, indicating that there is still some way to go before the company can get listed. Douyu filed for an IPO in January this year.