DOYU - Earnings call transcript Q2 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 Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note today’s event is being recorded. I will now turn the call over to the first speaker today, Ms. Lingling Kong, IR Director at DouYu. ma’am. ahead, go Please

Lingling Kong

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

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

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

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

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

Shaojie Chen

[Foreign Language]

Lingling Kong

to growth investment explore self-produced drivers new while the our In in quarter, we increasing content. continued second

profit for structural adjustment control and resulting the cost quarter. revenue of in tightened by stream, we quality addition, our In our revenue turnaround a improved

achieved our operating as revenues billion Meanwhile, gross XX.X we income procurement to to user improving mobile copyright solid increased control, we million. quarterly pleased our This adjusting RMBXX.X our from strategy efficiencies quarter our X.X% to second million. am have MAUs X.X We believe a maintaining Total was was that are of net of paying quarter, an of year-over-year, mobile By deftly we quarter. quarter-over-quarter. through and In reached made fourth cost million. increase were but average prudently progress goal I the of MAU implementing X RMBX.XX net count was million, margin and year decline adjusted XX.X our the stable X.X%. there share mobile with quarter, at the MAUs X.X% factors you work. the

quarter, procurement MAUs have in as caused acquiring MAU by First, impact starting we on copyright on traffic base, our to eSports users a tournament who negatively our year-over-year in users platform. primarily loss loss overpriced in had a our very only decline tournament selective the our affected from which fourth it seized strategy, we limited rights revenue. on led for execute content Those

our platform. the quarter the users second of to with peak Therefore, is tournaments the on it the official livestreaming fourth of compared certain stabilize a in The on season very official difficult willing of is quarter. number traditional for high year tournaments quarter-over-quarter tournaments absence platforms, traffic with

self-produced retained our and segmented we and thanks as the old to However, content high-quality users such new streamers refined attracting users quarter. during tournaments,

our copyright increase, mobile realized result, procurement the sequential impact our a a our of has business. indicating by absorbed that achieved and negative As MAUs a selective been strategy

a activities we longer attract content. purchasing the to our partially Second, platform of resulted from developers decrease in with game promotional certain portion MAUs offsetting new collaborated users, no copyright that to launch

of some a limited of and to which promotion in of with popular our return livestreaming significant promotion developer growth contributed successfully users. participate, This time items gamers Peacekeeper, users users number For channel launched inactive the example, where attracted new game in-game of most can a the purchase a we the galvanized within to the period.

system game differentiating investing produced Turning focus second content content the update. in continued content. which building streamer two the second while eSports of our our a game-centric quarter, tournaments to the developers distributors on tournaments further our to of effective comprehensive IP needs graphics close further hardcore operations livestreaming, These high-quality content with customize innovating features, to a strategy quarter In platform, game well-known the self-produced refining of by professional the video we be on ecosystem and we our on and collaborated increased interactive shows, content and self-produced content users the maintained and enhance the streamers, with to game in preferences quarter, integrating content XX of categories. enriching categories, for content execution into diversified of We In we for tournaments self-produced in meet communities. Based investment differentiated to and can divided is first users. our tournaments gamers. based and

our competition developers Leveraging The tournaments gamers. second of and operating between students for from gamers. hardcore tournaments, self-produced category casual our is and in loyal core amateur for college professional new users acclaim well-spread game eSports both and tournaments our experience years light received among competition

of During once partner. selected was official at the again master the our quarter, by self-produced game’s developer its collaboration DouYu Kings fifth Honor as tournament

increasing tournament through intellectual formats, as For of Honor and combination innovative engagement online to be first users every DouYu’s category. enjoyed creating in time, can were an the participate that able user and by tournament user of property Kings offline this

college and more discover Honor are cater events, With ways by to both and inviting XvX differentiated of a to child guests open and we regular attracted developed comers. competition well-known of festival created deeper user to new the order using attend team to top users unique event up. diverse In penetration [indiscernible] tournaments for of demand, organized and the of masses to popularization and differentiated This by for that and including eSports, selective competition all we and to players variety Kings. novel gamers, LOL have unique

and communities of different discussions our round further tournaments’ enhanced highlights. and we a absorbing a we platform. user engagement post-match and stimulated exciting so second By between doing campaigns promotional and active platforms tournaments and environment created During warm-up promoting hosting periods, on by

and collaborate example, our livestreaming to and with KPLs continue integrated operating we game and users. with developers copyright, purchased we tournament activities community spring attract closely engagement as tournament user self-produced several tournaments previously an new our content. increase IP video, graphics, derived Using official to discussions Regarding shows from

the the eSports in team KPL addition, In we won Wuhan eStar signed season championship. spring

copyright strategy of Going content. will forward, make our purchases effective continue execute to selective procurement we cost and

evaluate on We such and tournament ROI each revenue traffic for contribution, will metrics analyze costs. as contribution and the based

we knowledge sports our content, which participated revenue and game the entertaining ROI than high-quality improving create viewers. diverse we show segment to X addition premium raised still our content. by and all successfully content livestreaming We We for efficiency ecosystem, maintaining and Experts. More increased content our users quiz operations. platform’s cost development we the Gaming of online over and content attracted game-centric advantage operating to content tournament our gaming gaming In our in innovative quiz Furthermore, successfully gaming developed controls. in delivering and implementing operations continued XXX,XXX our quality continue while live refine investment enhanced in released to China million as contest,

Now turning to monetization.

of In and adjusted operations, making and second we seeping to been quarter latest the Our ARPU of count was rational our we function and trend quarterly consumption ongoing in compliance content regulation X.X refined platform an the proactively guidelines. in and user the promoting total RMBXXX. million, with have average changes with paying livestreaming, maintain

basis. our As stable a paying ARPU on result and of quarter-over-quarter remained modification, basis, but on a count declined this user a year-over-year

sustainability fact, this of matter and habits improved actually the adjustment virtual among a As our quality paying increased and users. encouraging by healthier of gifting revenue optimization

have utilizing in spend quarter. stabilize base core gamers’ maintain a and a For example, groups, engagement enhanced previous second customized our willingness to healthy cultivate stable sustain playing able been sequential sustainable system strategies, membership demonstrated based operating By the promotional of on paying user the in adopting continue casual growth by and upgraded different healthy Diamond we by we continue user we to users’ range for to their campaigns more to habit. our Meanwhile, services ARPU. preference and mid-core Fans develop quarter to our as a explore the membership since and we

interactive their service fans. is tool important and interaction maintain the Our our between to streamers an membership

continue value-added to and As and the [indiscernible] stickiness streamers’ characteristics. distinctive streamers has that willingness Fans subscribe are the related increased of including release we Diamond exclusive in features, This unique enhanced to of features to such, further services. to games’ additional are membership and users fans to

and monetization diversified continue forward, channel. we Going explore to new will

share and then developers. to quarter, Last terms cooperated functions. development, developer employ with number cooperation with X game develop data technological data strengthening game partial innovation a of we of gradual in-depth gaming our been Dota In we and this to have

of Honor with connecting to cooperation user fostering their improves scenarios. badges features gaming gaming streamers our that with share connection consent. variety extended when achievements launched Kings. of data this experience we customized achievements our We different game as further such in actively be participate in developer game display gaming During a and the on this quarter, we [indiscernible]. By users Sharing users accounts, between they can allow also users’ so DouYu gaming platform displayed rankings with way accounts in of and information now partial gamers scheme by that

on game our to we self-produced interactive us collection provide developers integrated collaboration content target our better different with users business, behavior and learning platform of characteristics. accurate based to machine the our further in for for our of possible to our our content addition, augment based gaming as on we of offerings and preferences user videos, with In increased investment stable Furthermore, it and to livestreaming innovation recommendations traditional graphics data our livestreaming, optimized features. and technology game content performance more operational Overall, game deepened content makes communities. so and customize user leverage

implementing now segment, platform’s over Finance, enhancement our In the consistent We of and Vice President to and monetization I long-term potential explored details financial performance, of and for the sustainable our each enhanced our operating the by we expense go call to financial are of quarter. Hao realizing new game and models through control regards monetization that, our robust a Cao, capabilities, Mr. optimization. game-centric are in With growth. to to ecosystem. effective the continuing will improved cost performance turn ROI Through efficiency healthy we develop our

Hao Cao

stated exceeded we non-GAAP reach top Lingling. that our Hello, even I’m efficiency. quarter, Thank that Last our priority expectations. everyone. operating to broke see to was by delighted our improving you, performance

we billion During execution the of the second to further refined gross recorded demonstrates This quarter controls. expanded our in XX.X% enhancement XXXX. RMBX.XX in and second XXXX and same billion, features and as prudent year-over-year net related decreased the decrease income by operating through of implementation effectiveness on to period adjustments Total XX.X% to margin Livestreaming RMBX.XX of adjusted of improvements the due billion. efforts. efficiency were was certain the expense continued revenues such to cost from decrease operational an interactive ROI our a strategies million. effective revenues XX.X%, quarter, of The of net and operating RMBXX.X RMBX.XX

operational healthy made fully advance responsive to updates comply newly have For with have our of in the guidelines adjustments we development and to the requirements. order future highly long-term platform, been in announced and regulatory

these virtual of partially impaired, result and interactions quarterly of paying number adjustments, a the year-over-year which in were ARPU. decreases gifting caused users both As

to However, users at the we and long-tail of paying habits as mid- stable the the users. level ARPU willingness of to paying continue quarterly users remained current stabilize paying cultivate the of core number our paying and the

exploration X.X% an RMBXXX, by XXXX. was of revenues directly models was sequential period continued of but several new in RMBXXX XX.X% increase billion in period year, other year-over-year of of the well the decrease China. RMBXXX.X million the last the on a costs by that ARPU The a RMBX.XX were XX.X% using XXXX. commercialization Advertising demand compared quarterly coupled factors. COVID X.X% primarily soft RMBX.XX from of with for resurgence same million advertising have was decrease advertisements been in attributable Cost traffic same same billion with fees the and compared sharing basis. same which with decrease period as period from second a the a could portion monetized to in of Our RMBXX.X of of billion revenues XXXX in driven was as quarter XXXX, billion, the the RMBX.XX to content and Revenue in decreased RMBX.XX

execution of in First, to the ratio. demonstrates lower operating decrease a on strategies revenue efficiency outpaced livestreaming the in fees This improvements. revenues, effective prudent decrease a focus sharing sharing leading the revenue our with

Second, broadcasting selective tournaments we the cost strategy. decreased content-wise as of overpriced ceased rights for significantly and procurement acquiring copyright our eSports

rights to XX.X% and quarter RMBXXX with deliver consecutive was equity of the primarily of The loss method from quarter impairment Research share professional XXXX. compensation XXXX period second net million and copyright, margin revenues million, XXXX narrowing costs, production bandwidth and XXXX which in basis lower period from content in expenses RMBX.X well expenses, marketing mainly decline improved of margin investments, XXXX. improvement loss from acquiring year-over-year year-over-year a million content absence the acquisition of recorded was compensation of compared The This the as based usage million was of of of bandwidth period with optimize XXXX. Sales expanded same benefited in XXXX, procurement XX.X% mainly XXXX. in Bandwidth XX.X% generally second efficiency. eSports ratio, XXXX. both were of second on quarter in by second of loss operations adjusted quarter the operating to in points due of bandwidth also of costs. million administrative a a of million in RMBXXX.X expenses RMBXXX.X given reduction tournaments same million in XX.X% excludes continue compared RMBXXX.X RMBXXX.X of overpriced decrease of deeper loss the of marketing XXXX, of sharing to XXXX costs quality are quarter decrease was The the operating which the from as improvement also peak Adjusted to period RMBXXX.X in XXX was the decreasing which first RMBXXX.X significant combined XX.X% of net content peak RMBXX.X the period built XXXX. quarter expenses reduction to with second the million, ceased were in due in RMBXX.X This compared major lower the same of share-based same personnel the period Net same the million Gross of in share-based were other a the was we RMBXXX and the of million in decrease protecting we in two strategy. quarter the XX.X% decrease loss million improvement of in development purchased quarters cost significant XXXX Third, as in-house million income to a million, compared due from period to expect adjusted rights Adjusted due primarily expenses of decreases income and the quarter. decrease usage. for million second same with the million percentage to of period a RMBXXX our unit second the the eSports second in in Gross expenses. same bandwidth which same bandwidth of XXXX, quarter losses. the for in in the XXXX our in and Meanwhile, representing tournament of in in expenses by attributable decreased user related. as expanded in in second benefited revenue in the margin the with cost decrease XXXX. and sequential personnel-related that to efficiency fees. XXXX period in XXXX. million RMBXXX.X gross per RMBXX.X of sustainable decrease service revenue was our quarter General as RMBXXX.X suppliers from to The the from the of from profit RMBXXX.X costs same primarily decreased was contributed investments the expenses was

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

per adjusted RMBX.X While and basic net and RMBX.X, ADS were diluted income respectively.

December company As of XX, compared restricted of had June and cash, as the XXXX. XXXX, long-term deposits equivalents, RMBX,XXX bank and with cash million cash short-term RMBX,XXX of XX, million

sustainable and delivering on focus of with and controls improvement through operational ongoing along of will continued the improvement ROIs. we quality, our our forward, Going revenue cost overall profitability efforts

long-term our enhancing are This to take questions. continue of capabilities Operator, to for our our concludes the now prepared platform. remarks we will ready support development today. monetization We

Operator

Lei of Instructions] Bank [Operator first The with from America. you. Zhang Thank question comes

Lei Zhang

Thanks question. taking management here. for questions my Two

on Thank business? livestreaming And you. with change update eSports May? any our in in you future impact eSports Secondly, us on launched regulation the current share any First, to operation content? license in can and its in our your the tournament plan

Hao Cao

creating an latest to have data with status and regards to of adjusting platform our to time have limiting PK our This operating revenue. the operations according of lower high-quality users quality our the our the to to guidelines, adjustment permit growth limiting the that in our sectors. register of These to healthy and folks long-tail on of on [indiscernible] transaction. stabilizing development Let such positive revenue for and and report PPMO. system in revenue of generating adjusting were transformation we [indiscernible]. single users promoting virtual systems question. guide protection keeping analyzing users up believe minors, series gifting consumption After In the and context trend implemented by continued requesting including transaction in me implementing to [indiscernible] ARPU. spending, ranking In the virtual included mid our updates answer top update improvement we small, steering spending the led second on multidimensional first peak livestreaming guidelines. rational included a rank total name three shifted setting hours of core regulations the May, and each and our growth attractive we gifting, by rationally By June, from users your as to habits paying during measures a for

anticipate XXXX. incremental structure negative end on latest since revenue our the adjustments Thank of based the a you. operating not impact we the in do have significant We on since performance this Therefore, carrying update June. been out

Operator

Morgan next The you. from Stanley. with Poon question comes Thank Alex

Lingling Kong

are second answering question. the operator, Excuse still me. Hi, we

Shaojie Chen

our such tournaments rights X, CrossFire, eSports as broadcasting etcetera. Dota Currently, variety popular games cover of of Honor a Kings,

video, and needs. China growth For offerings a we diversified interactive our tournament integrating in our healthy strategy. with our graphics stage, further a – gaming pricing developed has back gradually into eSports selective to industry future. content, livestreaming differentiated the near of fall content copyright eSports content Therefore, carry and The by on that procurement communities meet into the we will out we copyrights reasonable in executing range will anticipate users’ carry

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Operator

Thank you.

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

Alex Poon

and has Can is the view growth self-produced My that first to has of is question Thanks game content question to do their April, these our question. quality second traffic management revenue my ensure been for we related resumed content? you. how in management taking our helping approval. self-developed license and growth? how produce share Since content. Thank we Total My related

Shaojie Chen

to to content key community needs are environment component business-centric are are perspective. from Because diverse and So we with creating content, and content, engaging their their the varying self-produced product the retaining regarding platform, an for attracting and the motivated users as users important a make platform most satisfying of them. our upgrades

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So different tournament designed cater we preferences. different user content therefore, to to

DouYu’s popular nearly several and college streamers. gamers, by When core we XXX students appeal entertainment-based gamers with presenting involving a professional [indiscernible] part outstanding held we famous colleges hosted in In we techniques among more SKU-oriented we and our eight with tournaments, user tournaments who well-known Kings are enhancing giving discussed produce tournament among on streamers second quarter, on and of hardcore college much quarter, It and gaming hardcore end also of our have experience. focus focus colleges, highly to A college cumulatively organizing was are engagement students. provide influence interaction. For the to Honor strong coached of of varying second collaboration platform. XXX the the eSports users students. Up brands than tournaments

favorite top League. by recorded for Legends for more than of LPL fans we the team XXX representing fans Pro the give fighting the LoL produced stage During to tournament. was XX the in quarter, League victory honor tournament, designed then their teams, fans, which professional them We of

and invited in commentators the we depth fans on tournaments adding viewing tournament, LPL the to to As experience. the and large-scale commentate players professional professional assortment fourth the industry,

popular accommodating developers. to up party game and streamers, for also In This casual game and both and event playing team became of in platforms hosted huge well deleveraging. fans naturally the Kings their a festival addition, users, we streamers XvX Honor invited

graphics within and and stages this different different various achieved different We streaming our content solid coupled results. event platforms community our content have and promotions integrated mediums, discussion at supports comprehensive with now during product diverse tournament through fully videos, system content this system,

segment. viewing and We in viewing the this growth our to longer gaming traffic, during self-produced observed interactions compared using bullet chats when in level have more tournament hours typical

Hao Cao

Let me seems It is question of second the see to new In pleased the run, the sophistication your approved the we new that and answer abroad. the gaming towards the be the games. number diversification will of game industry We reduction platform abroad. game developing and long believe market about DouYu. general were this based like recently that gaming for gaming development on for contained and beneficial

a sort As high-quality games of and and users. engagement games campaigns primary are our

As are release. focus more products deeper to our revenue their increase new conversion competitive through while and the game in games improved generating in are resulted, have campaigns By being we in new pool our approved, to increasing developers. with downloaded adjusted providing game promotional starting our and campaigns support data, resume games developers response We to collaboration games from advertising industry.

of For repetition games in we Thank example, activation. quarter, of next and number two second new promoted achieved you. encouraging played terms Operator, results question. games [indiscernible] the in please,

Operator

you. Thank

with Thomas from comes Jefferies. question next Our Chong

Thomas Chong

Thanks taking question. my for gentlemen

We pay have – procurement just negative to is gradually the and strategies talk about copyright out. content MAU impact our

color So, get some achieve this about to Thank we that just done have more the you. to outcome. wanted work

Shaojie Chen

as in the watch than the selective our the second would And decline. of order quarter, were user countermeasures, opposed platform forward When look content to especially expected platform, our that in on the we official execute a tournaments, strategy decline close which strategy, our our these behavior traffic, traffic. segment offerings mobile overpriced in experienced as some tournaments copyright performance users with lose our on We performed been adjust in Most new made procurement to our some we stabilize anticipated, we platform’s platforms’ decision primarily with increase self-produced who Moreover, Thanks content. our expected copyright mobile and swiftly came who that our such to the main gaming to MAU see tournaments MAUs the better investment official move the to of we absence our during track our of official held. lacked to of of tournaments. were tournaments MAUs overall our increasing operations. watch has Meanwhile, as we we in expectations. as result part official kept a mainly more consistent had we users of source strategy procurement quarter-over-quarter

to to only Since items base attracting In have impact launch This of content. content, level. self-produced we collaborated e-game users during self-produced interactions segment, rates, we other activities different absorbed. and of hand, streamers’ different high-quality users for series limited viewing livestreaming operations amateur high-quality LoL not the but diversified characteristics game collaboration number retention quantity and streamer and maintain are substantially to with sources of In users, developers our and to characterized we longer been increase towards work streamers game the hours believe new promotional by self-produced promotions leveraging Operator, continuous successfully at long-term our their from question, stable structure with certain has the hours to On combine number content, viewing so tournaments’ high hours this stickiness viewing segment, stable a we content we came users content, large of utilizing our and stabilized Peacekeeper negative who the stable interactions with the attract of user the new of next absence developers. launch our the creative core of a on promotional based content able copyrights and of tournaments please. and as for the fully launched streamer our to livestreams.

Operator

Zhang question from next Yiwen China The you. Renaissance. Thank comes with

Yiwen Zhang

couple a questions. have of I

our And should that whole note for drivers we Can profit like to margin, Can more First, prepared executable Thank our in our regarding other what monetization, a are content solid trend? you how secondly, diversified in discuss monetization-wide example, this you remarks, the business should the more progress you. any cost-saving? you And at details, exploring how the we is much mentioned profit of and for gross are gross a discuss quarter. improvement monetization. look we behind, exploring? example, year membership margin

Hao Cao

have other streams we revenue been As commercialization virtual with exploring gifting. to increasing business virtual and gifting the both first exploring question new goal beyond about the of revenue model, of models new

examples. some we Diamond by are value-added streamers gain is Streamers to quarter, Upon fans gaming access streamers. users Here membership rewards based and upgraded in-game interact virtual with In to users. revenue membership Diamond the gain increase designed gifting system, which and exclusive and the services provide additional advice our fans users scenarios. opportunities last for between engagement more Diamond fans subscription, on services enhancing to

system streamers’ improved of further the with which healthily by quarter-over-quarter membership quarter, on ratio. membership improved characteristics, of enhanced This paying based improvement grew we users’ subscription more for providing users loyalty rates. renewal steady customized features and Numbers

Going integrated offers forward, benefits platform build membership streamers system privilege, game single with in interactivity we will package. a and an that

In benefits offered will strengthen the collaboration game to that our also we we provide with service more developers for fans to value-added on platform, addition Diamond users.

continued advertising conversion direct is refine from advertising. system game we improve aforementioned rate smart advertising to distribution to dollars. and system game supplement In response this of the models, viewership of as the traditional a to to terms current display goal The

their This flexibility lets to game developers tasks, smart games. obligations. choose to method their promotional greater enjoy while preferred while Our fulfilling streamers distribution platform release system for task-based enables promotional promoting allowing streamers

updates have year, decrease progressing well decline revenue the fees year-over-year is of to more the the operational is sharing titles. improving beginning to decrease active revenue version users been system the in on the promoting sustainable focused game operations a in overall and cost meant structure, mainly is sharing implementing strategies, fees rationally. mainly of we the improve those [ph] small guide to also decrease attributable cost ratio. operating effective and XX.X% standing this of in to has About revenue and spend livestreaming both quality livestreaming result the are users be in our of second and and of mature year-over-year in which proven confirming The content decreased sharing revenue revenues to far, by margin generation. revenue revenue So with a to costs. We reducing poor on question Since and efficiency our return

two As consecutive a have result, sharing for revenue quarters. ratios declined

at payroll remain adjust self-produced in rights slight of with revenue-generating certain costs lower The costs mainly we between the decrease content will operations. our overall content tournament us copyright LPL. resulted our that mainly only level current ratio result such expect copyright our in fluctuations in reduction healthy We quarters further from streamer revenue as The of as large-scale fees, seizing costs. optimization and content was a acquisition reduction of sharing

such our terms resources front, as In to a optimizing self-produced reduce decrease on for operations, of quarter. continue second the resource improvement variety a in utilize segments, focus the integration Under payroll, our leading content quantity. and as to have than continuously streamer year-over-year content of been we we quality costs, joint methods to we streamer some rather of

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

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

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

Lingling Kong

Thank for we question. next are you. Operator, ready

Operator

Thank Gong Citigroup. you. The with Brian comes question next from

Brian Gong

you taking question. myself. my gentlemen I for will translate Thank

decent on the We this a second you. of this the year our decline opportunity Thank future? behind OpEx commencement have and shares. recorded half drivers the in and The

Hao Cao

year-over-year expenses the and period a expenses analysis expenses we select to which for compared decreased promotional as the the appropriate products heightened year. quarter, to At overall sales the data and efficiency. In increase operating basis, performing channels to among on in present, last are cost-efficient continuous second decrease same showed a new features promotional marketing and marketing significant

costs to We level expenses is operating payroll. major Besides above-mentioned our the at expenses, future. promotional the component foreseeable expect a remain for marketing of current our

each optimized staff to This level certain according evaluations for structure a Overall, we achieved of and division. adjusted expenses our on year-over-year. quarter, saving we cost payroll

For while and operations, the stable expenses expenses business realize payroll gradually remainder net the Thank to of will allowing a we ensuring narrowed further optimize loss. year, operating you. us

Operator

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

Lingling Kong

next for of quarter. We to our with behalf On everyone call. management, speaking the look you thank joining forward

Operator

Thank attending. everyone call you the you. Thank today. That conclude does for

now may lines. You your disconnect

DouYu International Holdings Limited (DOYU) 16 Aug 222022 Q2 Earnings call transcript