DOYU - Earnings call transcript Q1 2022 | DouYu International Holdings Limited

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Operator

Good morning and good evening, ladies and gentlemen. Thank you and welcome to DouYu International Holdings Limited's First Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode.

We will be hosting a question-and-answer session after management's prepared remarks. Please note, today's event is being recorded. to Ms. call like first to now today, speaker would turn over the the I IR at Kong, Lingling Director DouYu. Please go ahead, ma'am.

Lingling Kong

Thank to call. you. our first quarter Welcome Hello, XXXX everyone. earnings

Executive Shaojie Joining are Hao Cao, Finance. Strategy Chen, Officer; of Mr. Mr. President Chairman Officer; us and Mingming Mr. and today Vice Chief Su, Chief

ir.douyu.com. first to You financial on can our refer our results XXXX quarter IR website at

in IR replay You this call available check website. becomes our on a of a also hours can it few when

may the this by All results, Company's filings Litigation call management's cautionary expectations SEC. materially unknown these to and the statements, of forward-looking performance the or Company undertakes details The that forward-looking risk by are contain expectations forward-looking and expressly with of in entirety Before statements. forward-looking the provision pursuant uncertainties we implied the factors their note based and cause qualified current no observations company statements the start, or revise or after call. forward-looking Chen. different These Shaojie date statements update made for circumstances of conference speak performance from and which selected may I the risks, for actual and of achievements or to statements events involve this please on XXXX. not are on now Mr. CEO statements any results the will behalf other to the be Chairman of that Reform duty Harbor our Safe Private Securities known factors control, under company's Act

Shaojie Chen

copyright quarterly user increased and were our we to Total margin were the for adjusting of business, RMBX.X strategy. executing quarter, XX.X MAU RMBX.X procurement Gross revenues million. our steady accounts core selective selective billion the while strategy. Mobile During million. of business continued development paying demonstrating and copyright the procurement XX.X%, quarter the effectiveness average reached operations our net on our first

adjusted driving our to net has In of series cost measures control efficiency, addition, our offering RMBXX.X successful million. implementation our increased loss of a down

that our expectations. year-over-year decreased believe at there the change that by our within average a factors million, During We X.X% two quarter, MAUs work. to XX.X are

to rights negatively executing on strategy, content tournaments, efficiency First, our for which as overpriced we operating selective our procurement eSports finished have MAU. acquiring have we strive copyright affected by improve

of was, and fact, expectation, However, the level band. in stabilized narrow than and our decrease within the better has a stayed MAU

users, analysis that streamers shows Additionally, from of and game quality different content absence the data from eSports in selected our new self-produced content regardless high segments successfully tournaments of attracted tournaments.

offsetting to our pace the slow to platform Second, increase continue to tournaments. eSport us our content of enabled in for MAU, of games that terminating a new XXXX Despite belong rights partially the selected impact collaboration and launch customized attract quality games our game our we last them for year, operations the new with retain content were of refining within to users by high gaming game. and developers each offering able

refined collaboration non-eSports gaming and investment quality developers by while extended we and distributors the categories, operations and self-produced collaboration enhancing secure high eSports content our our live the and content In content updates. execution both fourth mentioned and building We our quarter, Turning we streaming, effective to offerings, advantage our game with enhancing customized Furthermore, comprehensive game-centric in interactive content. of our communities in strategy content of to platform. refined integrating graphics a video, and for further different our segments. of game operations

professional talents, professional discovered eventually many establishing centralized production was new also last produced self-produced to who exposure was consistently as a content selected close the process year, the We to eSports and we support enabled system. developing self-produced of we a tournaments our engagement. tournaments. our by became investment tournaments. the management Meanwhile, players. to enhance and Tactics, increased content new Teamfight LoL one By us and its tournament During self-produced diversified with by Tencent, all DouYu and of LoL XXX quarter, in NARAKA: try of incorporated tournament calculate value hosting with tournaments launched our collaboration gaming and official official Legends Rift tournament BLADEPOINT games providing system. by Wild into self-produced levels [indiscernible] Master for them Among major Tencent animated our official series our tournament have streamers

also and greater able are recruitment streamers, offer career our our streamers development platform, improve we high we for streamers opportunities teams. potential to our not professional only but As training refer to our on eSports system

the and and our In and tournaments of launches. to [indiscernible] for producing game segments, based new individual holidays, system on features game advanced events version during tournaments, shows streamers in-house customized entertaining addition we [indiscernible] major

inviting For example, in LoL, top we tournaments gamers streamers, segments, and which to all for participate. different tournament X and [indiscernible] Dota game users [ph] self-produced encourage an

Our differentiated professional mid-core entertaining and both hardcore game gamers. content innings of of [indiscernible] offerings tournaments and for diversified

Importantly, we and also mentioned of content. our improve production novel engaging video

All period. other features. games called promotional evaluate Games their and of an of new show's exclusive About highlight produced fresh games, [Indiscernible] content The For topics, new that given variety reviews, game show includes discussion innovative trending

that as streamers In boost this in willing of of content, promotion. type Production new related experience and other addition, high we this develop production the show engagement. the as to were cover enhance user famous industry content a show. our invited and gaming our the of we also developers of quality channel community Moreover, to found enrich game participate [indiscernible] game some of cost segments we to

new model we a also result, a game only not those but build ROI for game collaboration optimize brand developers, segments. with As

to cooperation and game distributors. Turning our developers with

developers and -- We continued to deepen with on from our distributors. cooperation game monetization

number Tencent launched cooperation as users both items. by example, with rewards in-game encourage we gaming in analysis gamers the streamers and display new practical make for us a to to user this broadcasting we an offering streamers function [ph] the cooperated same task provide partial [indiscernible] based functions. [indiscernible] are to and strategies in be we experience. methods exploring devising to a reeled Using of to performance activity, develop the share activities consistently simultaneously. This game allow user game to time game of real analyzing Enhancing of optimized with data includes of to allows promotional gaming bolster an data data. purchase performance, instance, DouYu to game Moreover, with function and and game variety [Indiscernible] developers. For of display employs developers

based further Looking by ahead, our launching operating we appropriate directs distribution historical efficiency which will to improve levels data. individual on exposure algorithms, of attractive streamers

our reducing a to capabilities. of and increase will and Building content, expenses As utilization quality consistent self-produced more. operating high to users of refine production operations, advantage exceptional costs our operations and resources, content, high joint deliver content operational we our in [indiscernible] platform, through quality game-centric value production ROI and by on

our evaluate Going forward, platforms continue monetization we to each overall will execute operating enhancing ROI. optimization, by efficiency while on improving games potential and

Now turning monetization. to

in average Our with RMBXXX. decrease total paying in our first a of ARPU and future The advance and the of in number operational of of paying users year-over-year environment. tightening anticipation updates adjustment an in quarterly X.X result quarterly users was of number the million both quarter ARPU regulatory

behavior sustainable the more mid-core campaigns, based we enhance are As promotional of to strategies preference paying through operating on continue engagements develop with our customized that core and gamers, casual different and and of users groups. the

in to streams. able we user new stable users, our and and are range healthy ARPU. our revenue they of a pay exploration for base a sustain paying persisted development Our Meanwhile,

campaigns, services following our streamers our additional called viewers, self-produced are example, in-depth offering with engagement such and interact to our customized membership able are segments. we we content and with with upgrading more between improve the membership subscription For streamers. rate of members our [indiscernible], game promotional with the to system analysis of privileges certain functionalities Utilizing

forward, characteristics. we games will our individual cultivate Going program unique membership distinctive to leverage and and features our streamers we continue expand as

launched technology, a of we games product for and developing continuously interactive To walkthroughs, are [indiscernible] we streamer products branch. our [indiscernible]. as and users an innovative our gaming called growing terms function In meet recently demand community

and answering function, tasks data a themselves this and out analysis a and as tasks the game and record [indiscernible] in questions we package [indiscernible]. For chat then bullet tradition hot with from to often topic topics theory, takes gather the carried Streamers forums tactics streamers. impact for our discussion DouYu's big

game upgrade consistently allow while streamer users experience, streamers added accounting leveraging between extensive training have strategy available and This us questions. content generated position offering our to show streaming push By produced content offerings similar To provide our we into resources, integrates asking understand able management engagement bullet our the have and video, maintaining and developers live Finally, dimensions in Leveraging live to relevant further technology, time, outstanding summarize, a our users executed This sustainable interactive traditional industry. seamlessly users [indiscernible] then in are who graphics we content from operating the show are for ratings to game to multiple that leading robust demand. innovation. extract operational streamer able team same are with on movies enhance comprehensive the processing communities. utilizes optimize to shelving content like view and and can we this we language chats. deepened be with users. our to [indiscernible] streaming, natural that in the and are At content cooperation our

details Hao to will Vice our Finance call our financial of diversified exploring to go quarter continued models our performance our now the and performance. I through monetization the augment addition, In to With turn Cao, engagement of improving the we while that, consumption user capabilities, Mr. and financial in over the President

Hao Cao

Thank you, Hello, Lingling. everyone.

of have in strategies, adjustments long-term number quarter billion, RMBX and partially operational Considering features of interactions through the on implementation and The regulatory margin impelled, as to tightening been During and and the to Total improved paying with been XX.X% year-over-year of decreased the The result quarterly feature our Livestreaming interactive such cost ARPU in the requirements in RMBX.X Virtual regulatory RMBX.XX have our loss development a first to ARPU. period operating XXXX. enhancement which prudent and a the efforts. billion net adjustments. platform of decrease narrowed adjusted on revenues basis. by revenues from operating we billion. improving significantly to first these lower results. same XX.X% achieved the in decrease operational a efficiency users due comply and both Company's net the quarter, XXXX for related focusing decreases year-over-year gifting cost of was updates with of ROI the environment, gross adjustments, of encouraging we certain advance making as controls were were

personnel-related of compared in as continued of attributable decrease could fees, primarily million, with models million improved and also content production demand of RMBX.XX which the and traffic with revenues reductions RMBXX.X soft to in and to in paying in period RMBXXX.X line commercialization to peak users. using same X.X% have show of regulations period Advertising a first as The decreased Based million, was decrease content excludes million in macro to to our strategy. of X.X% expenses. representing expenses the of which rights core size well the significant was in Research [indiscernible] directly in Sales attributable the to the due billion decrease procurement continue due usage RMBXXX.X XXXX the investment of XX.X% invest million Gross in RMBXXX, quarter remained General the in of And loss exploration the was for as the in continued by improvement year-over-year been decrease year. loss were that a compensation XXXX. the the period habit XXXX of expenses administrative Adjusted was the a period of RMBXXX.X from we challenges decrease advertising monetized compensation ARPU we quarter by compared mid caused margin paying eSports core same by branding paying for was period of advertising XXXX the the portion new of a Net content quarter to decrease the same billion, Adjusted were aimed to primarily other same in stabilize to Gross from in period at technical long-term expenses, quarter XXXX. gaming first in willingness of first of XXXX million, same Meanwhile, in RMBXX.X in strategy. operating million, the bandwidth in million significant million personnel of expenses of the of million loss billed per of were from first XX% in largely in in million RMBXX million, RMBXX.X costs XX.X% the XXXX. RMBXXX.X The a benefited was our of rights XXXX. overpriced we period XXXX, adds broadcasting period marketing of share million was contributed in as RMBX.XX from Cost absence of industry. decrease quarter increase of the fees quarterly sharing the margin X.X% decrease loss development the the which share-based of of expenses the billion period costs. XXXX, in RMBXXX.X users of RMBX.XX upgrades revenues RMBXXX.X RMBXXX.X same mainly of RMBXXX tournaments. paying million as mainly in broadcasting year-over-year on with of cultivate method expenses and content XXXX. revenues XXXX. million, of of from users cost the stable. the livestreaming RMBXXX.X XXXX, procurement first with by million, with RMBXX.X and analysis, in and also we million of the Revenue investments, XXXX with was RMBXX.X This first compared suppliers XXXX. our which sharing our percentage million, the share-based first of acquiring in its decreased first rights, usage. was compared and last Our the compared in increasing period XXXX. RMBXXX.X of revenues bandwidth on the decrease to The a primarily year-over-year and The decreased in first the were to decreased optimize content unit Bandwidth and Other and in quarter from in of XX.X% the eSports rights decrease was of purchased investments, is costs the mainly in the eSports same same same which bandwidth based decline XXXX content period of an attributable XXXX loss impairment XX.X% copyright was the compared RMBXX.X period billion same in net efficiency. continues efficiency support profit to revenue RMBXXX.X back of the tournaments quarter XX.X% enhanced same generally to period XXXX to equity Company additional a lower from the XXXX. first game-centric quarter cost product costs XXXX. for RMBXX.X in due improved same as the with from peak selective our XXXX. as overpriced with bandwidth was seized in in major the bandwidth same and to increase costs costs, quarter are tournament copyright, our RMBX.XX quarter given of

RMBX.XX XXXX, ADS For RMBX.XX, the were basic and per net first of quarter loss respectively. diluted and

respectively. RMBX.XX While basic loss diluted RMBX.XX, per adjusted were ADS and net and

had RMBX,XXX Company and as cash, like of August deposits short-term would million on to and which with RMBX,XXX update XXXX, our bank share US$XXX XXXX. long-term to December million, the XX, an cash may We million repurchase program March XX, XX, also XXXX, repurchase of of on compared its until execution up in cash restricted of of As shares the August company XXXX. provide announced equivalents,

worth million under of Company program. of of had this aggregate its As an the US$XX.X XX, XXXX, repurchased March ADS

This efficiency continued our efficiency. reach through now explore to will ready improvement with forward, by improvement to Operator, development continue Going concludes our will of take we continue and for monetization our optimization operating in Along prepared are losses today. overall our to order as of enhancing we we remarks increase breakeven narrowing questions. our non-GAAP to cost platform. the ROIs, priority sustainable top monetization of capabilities

Operator

go Today's from Instructions] Zhang of Please [Operator ahead. Lei first America Bank question with comes Merrill Lynch.

Lei Zhang

Thanks, activity. and keeping the in question regulator My regarding ranking taking also the regarding future question. management, and is [indiscernible] for restrictions my cap mainly the launched the

your China how the you. in look So could and business? view you environment with should overall at I impact please our to share us on regulatory Thank

Mingming Su

regulatory Industry guidelines regulatory streaming your comply live Let ongoing measures to and to me implement industry. refine requirements. our with the for of development question. operations answer probably players This

recently to the a operational date have notice. are the stricter year, been long-term of mentioned [indiscernible] of in our and This As deal Despite improve to more strategic adjustments prudent there adopting community announced our policy we and data [indiscernible] updates. no platform. making is to we development this, operational and standard regulatory [indiscernible] building platforms

later a May, of for on [indiscernible] requesting a early up our virtual in limiter include setting and for similar second and a transaction. [indiscernible] promote users. on to addition, we series each consumption keeping gifts platform In This our implemented rational April confirmation transaction [indiscernible] of

We The of to adjustment live as announced content online forecast. of streaming games, related impact financial far [indiscernible] protection in industry [indiscernible] policies March in have projected and our were of such the as the restatement minors. follow regarding And XXXX gaming policies. are previous

on-licensed adjusting have forefront, according games, for We operations on our -- [indiscernible] accordingly example. been this

the to in genres of been to traffic have performance. quarters our and impact maintain reflected levels game quarter ensure proper segments was since We of these to gradually paster streamers To games of third adjustments [indiscernible] traffic stream. allocation redirecting streamer The and between and similar the XXXX. licensed income different

[indiscernible] continuously evolving and Regarding minor contended develops. that industry content protection, have appropriate and the mode streamer creator reminder a with [indiscernible] as we [ph] BLC system term, are

department. carefully any close changes are regulatory monitoring maintain and with regulatory We communications

of changes. We react able you. any Thank probably be the to in event will

Lei Zhang

Very you. Yes. helpful. Thank

Operator

Thank you.

Please of ahead. Our next question today comes Chong from go Thomas Jefferies.

Thomas Chong

Language] [Foreign

Shaojie Chen

first Hello. Thomas's Okay. you. will I question. Thank translate

me? you can Sorry, hear

Operator

Yes. hear can you. the We operator. This is

Lingling Kong

Okay, great.

in in in will in the sustainability in our changes well first the large advantages question second operations? company copyright How the of questions its change platforms, questions. shift of our regarding as address question adjust a put will on impact for was of the will a What I operations Okay. tournaments? eSport Chen. absence I after the to the copyright strategy. is content ensure regarding strategy scale happen first Mr. Thomas translate the The as procurement will Thomas is resources. strategy procurement the there first streamers procurement

adjusted changes selectively but game add some strategy we purchase copyrights adjustment to of content only our reaction operational is livestreaming industry. not the First, the overpriced, the to in because in also

has industry in to gaming Our transitioned already competition livestreaming from game content.

and options, content content we On growth. varying and integrating face more our refined to platform diverse our are our meet offerings videos believe differentiated front, communities and While the to more sustainable from healthy and users we to users' key extended various operations content livestreaming needs.

we Although for copyrights we copyrights, continue to purchase selected decide certain to effective not tournaments. obtain cost overpriced

For discussion activities official user to users. livestreaming and community operating the engagement we are purchase with integrating our attract and content, tournaments graphics, video, increase

For enhance shows for launched collaborations self-produced KPL tournament, are increase purchased copyright. we we to actively the game our in investment for more have example, the with multiple ROI developers content. self-produced we Meanwhile, this exploring and

hosting For platform traditional while of supply eSports games, ensure and to users' of are scalability amateurs, the our increasing able remains we traffic have consistent retention a and high-quality for content, tournaments professionals and been rate.

For new on calculate to recruit new quantities of ensure we content games, streamers hand, and one large supply.

offerings UGC other offerings. more diverse content we of to our enrich the and our with our content. we integration community hand, TJC video able are attract interactions, diverse by livestreaming content On Leveraging more users and producing content

distributors our operation developers game we content cooperation deepening beyond with are the production. On and front,

platform game experience strategy, data Our between distributors new players for and for game developers models to user sharing improve game professional both in distributors, discovering to games evaluating cooperation livestreaming leveraging appropriate and and marketing our includes items, our find sales more. assisting game

partner a eSports the pre-registration device game Games, question. the before Riot to for game promote number example, is we and you. first For manager the actually developed officially developers to Thank with game high pre-registration by lead games, released. That's of the LoL upcoming

Hao Cao

resources. to question, As I of streamer will second [technical the difficulty]

build These further with edge. them resources different between better signing our and support platform our and agreements streamers, platforms, streamers distributors. the premier have We to us top switching agreements follow enhanced exclusive to helping maintain our a streamer from developers competitive stabilized long-term and by prevent and from and bind game collaboration

impacted users our Second, streamers generated that is generated view content. streamers to official by Therefore, was livestreaming cooperation the I significantly was limited not strategy. with MAUs impacted agreements. mainly not copyright by strategy selective by adjustment emphasize other traffic like streamers copyright our by who procurement our to tournaments relationship than

our enhanced ways. deepened streamers following and in also with operations We the collaboration

First in to and of of for streamers, we continue to maintaining opportunities and with of streamers, content all, terms or stream. to users for offer streamers while improving engagement strategies level operating the quality both interact willingness overall high

our promotion we League to collaborated streamers the Tencent, second of to with users and watch example, thus, tier platform. creating trailer of Legends invited a For [ph]. with in interact We host layer Riot scaler shows, the our top of self-produced

streamers, segment engagement As a result, and interactions in by boosted significantly, further explored the streamer our level of commercialization Meanwhile, the as sessions, in we in evidenced game [indiscernible] LoL of livestreaming the channel. was topics top community increases related opportunities.

privileged and we example, more users our customized For with Amazon's membership interact with to streamers. system, functionalities upgraded additional offering recently

result, between the more income, the and and a gained their the to deepening interactions users source increased, bond diverse As streamers further platform. of streamers

analysis Second, to data we leverage refine in-house operations. big

traffic to by earn are competitive platform. involvement and of and self-produced by to able livestream foundation For them to our streamers are platform high-quality their those talented active Therefore, expect highly high and potential mid-tier and on are and [indiscernible] streamers our more to long-term our streamers [XXXX] streamers content. tournaments. example, income. we all, engaging increase streamers All exposure and long-term a in believe directing our motivated platform attract remain appropriate mid-tier We in to our platform them

collaborations. and a comprehensive training, includes resources system, We management which recruitment, have streamer management

to receive streamers. our reasonable ensures income. streamers refine continued have our we that stream Meanwhile, with we have relationships you. increases to system Thank a they operations, deepened as willingness Our and our

Operator

China question Renaissance. next our comes go from Zhang And with ahead. Yiwen today Please

Yiwen Zhang

Thank you, management, for taking question. my

check we're want that the you. have on yes, exploring more be to in top [indiscernible]? you Can retain -- assumption, your meanwhile, game [indiscernible]. more you I you successfully users. more and [Indiscernible] And license you on discuss expectation that secondly, XXXX about a for I prepared the what's the have mentioned our new And model. So [indiscernible] that'd questions. monetization approval What's impact Thank title also operation? I remarks future? to the progress Can two tried diversified the mentioned

Mingming Su

answer Let your two me questions.

first question games. your our about that fewer platform. For [indiscernible] last released new games our video our integrates that teens a growth diversified to Peacekeeper. as well-known user It's underpins rich with were games and we [indiscernible] on even created segment content system year such graphics, Leading livestreaming new on [indiscernible] new at [Indiscernible] this and which backdrop operations. content game

We implementing have building game and developing also sophistic and achieved promising new segments. successfully results [indiscernible] by

of of some share launched games XXXX. in new me Let the achievements the

NARAKA: for games of as our traffic robust as on recruiting our XX tournaments BLADEPOINT launched and within top July, platform. was result training user new NARAKA: up shows. And remained ranking a platform streamers in and BLADEPOINT in ranked on steadily our producing our viewing engagement consecutive also related three time the efforts and For for quarters. Total moved

For of this quarter-over-quarter LoL game was increase core contributed [indiscernible] membership revenue to And user November, upgraded our system base launched Mobile a targeting segment. healthy the very them. that in in few

ROI quantity. consider this ROI We is important, efficiency to of that that see improvement. At is this for in run segment a games, new not time evaluate the we basis, that industry focus support it quality. the new And those the the us and into approval gaming for that games and XXXX, well. pleased quantity the effective to our industry signal we each the a especially time, severing as were same trending related is the that operating This KPI. of as for bettering beneficial game is part very course real segments to for gaming in be Looking will is on believe of ensure new games direction also the resumed. on of diversity the We shows long game

the most content are we a games and integrated build refine and tenders quality platform, platform high our and generation operations. game-centric strategy on growth. upgraded a the our Based content industry, important users game-centric to in their of resources As user going our content gaming

game your us coverage genres the experience our second are for we At for more, our cohorts. expanded models. platform question also about generate exploring leveraging new by new to time, upcoming several always our of same games commercialization, game to far [indiscernible] new We releases. varied expect with more more commercialization more traffic And user

look take examples. a Let's at some

In terms distribution of our direct traditional models, our and advertising system smarter advertising previously response mentioned advertising. innovation, display is

platform method for Our to tasks, streamers enables developers preferred promoting their while release to smart promotional distribution system choose connecting games. game

to new upload, effectiveness is to number aim slowly. relatively Due primary the and system. Our by improve advertising proceeding activations is of this the increasing in the this through downloads of delay project game

license games resumes. smart we for our expect However, release of that our distribution system augment will advertising efforts the once new

the generated revenue channels. commercialization new streamers as gifting. [indiscernible] [indiscernible] from virtual interactions to of and our model users between our part The Turning of traditional

currently gifting are terms We increase optimizing in revenue. to memberships our

again users fans [indiscernible]. encouraged more techniques. with For membership surveys cross users. provide system our opportunities our this and and and [indiscernible] Under enhanced exclusive become purpose, receive on value-added to can time system, this for interact and new we [indiscernible] other [indiscernible] In to game service to have LoL more [indiscernible] subscribe fire rewards Peacekeeper

membership membership also Our By increased the already from significantly we [indiscernible] renewed has is year. service number generated of by in of segments subscriptions than quarter-over-quarter. end XX% game March, the a you. this The last from more achieved end promising the December of Thank membership revenue increased service the result.

Operator

Thank you.

Alex Our question from comes go next Poon today of Morgan Stanley. ahead. Please

Alex Poon

-- should behavior, expect Can far -- scale and and management user explain purchasing the strategy how is we content their to change. what impact related should future? for change, Thank engagement My you. on question content so the their then

Shaojie Chen

Thank you, Alex.

overpriced previously, and investment for acquiring executed in mentioned anticipate with copyright advance, content in this copyrights certain we selective self-produced We increasing we fees series as strategy than MAU strategy under analyze better and of operations. rights. matters increasing eSports results our tournaments. As to such our a procurement strategy overpriced kept divides stabilize tracking order content and projection. reflected fact data [indiscernible] These seizing our and in our were of impact in those positive of MAU acquisition the traffic. Also, of we were

show we who of traffic lost primarily on that most our those data the Our platform. viewed tournaments

to their On content. who and the continuous by us Using retention allowed platform content in has quarter-over-quarter livestreaming by high stabilize viewing watched on our high absence contributed characterized MAU users a hours was example, our stable as LPL [indiscernible] increase its a traffic an quality viewing fashion. and of livestreaming quarter-over-quarter content, our video basis. on highlight resources generated our and of of stream hours steady rates, despite most basis. to LoL return long-term user This longer quality total on copyright, by large Having to generated a to interactions the techniques segment quantity single and of users high time

of terminating tournaments our XXX will decrease that As our earlier, we to emphasized acquisition investment We in imply copyrights during to close overpriced content. quarter. actually does self-produced not the

content. to quality game we did streamer self-produced high those For you. copyright segments of where and official Thank tournaments, continue not purchase we deliver

Operator

Sun our go And question of Please HSBC. comes Ritchie you. next today Thank from ahead.

Ritchie Sun

I'll translate it myself.

comes of to how management content Thank sharing [indiscernible] decline explain of full talk across revenue costs? costs, the license year terms assess sales much declines the what the management in attribute So, decline those and and content And lines about these cost you. trends how will the by and can we marketing can savings? should from

Hao Cao

livestreaming mainly with to attributable sharing revenues. decrease Revenue line in the cost revenue and XX.X% in year-over-year sharing content decrease costs. revenues of is decreased fees in The fees in decrease

streamer copyright [indiscernible] such Our stable. ratio tournament was and copyright acquisition see the content is revenue costs in result overall reduction from content mainly lower costs in content cost. of The of us large fees, LPL. a mainly resulted Reduction scale of self-produced decrease sharing payroll as optimization the remained rights,

In reduce terms in our as measures quarter. decrease have variety payroll, a games in of have joint such our and streamer utilized optimized front, we of [indiscernible] to self-produced leading streamer resources operations. a significant segments, year-over-year to we first the resources content of certain partners On costs,

able basis. to while self-produced more we production As a year-over-year were result, costs launch lowering on a tournaments,

which scale their and large for self-produced evaluate our will Looking PGC structure, tournaments, production we decisions tournaments our in streamer investment will optimize prudently for content ahead, payroll and our costs. related we procurement control increase

degree decrease XXXX. Thank margin we improve at year. the pace this a gross our We costs content expect you. of for Overall, a our will in year expect modest

Operator

we you. management all now That's call turn remarks. back to the time have questions. will over the I for Thank closing for

Lingling Kong

for next quarter. you everyone Thank We joining call with our look to forward speaking today.

Operator

today's This We you. concludes all you call. Thank for attending today's presentation. thank conference

You and may a wonderful now have your day. lines disconnect

DouYu International Holdings Limited (DOYU) 18 May 222022 Q1 Earnings call transcript