Game-centric live-streaming platforms Douyu and Huya both posted robust growth in net revenue and net income for the second quarter, though Douyu took the lead in terms of average monthly active (MAU) and paying users.

Why it matters: As the two largest players in the Chinese game live-streaming scene, Douyu and Huya could see their rivalry escalate as they continue to expand and compete for similar audiences.

  • Huya listed on the New York Stock Exchange in May 2018, while Douyu went public on the Nasdaq last month. Both companies are backed by Tencent.

Details: Douyu’s net revenue surged 133.2% year on year to RMB 1.9 billion ($272.8 million), beating Huya’s growth rate of 93.6% but trailing its net income of $292.9 million. Both firms saw costs rocket. Douyu cost’s doubled while those of Huya rose by 92.1%.

  • Douyu substantially improved its gross margin for the three months ended June 30, which quadrupled year over year to 16.1%.
  • While Douyu reversed a net loss of $33.5 million for last year’s second quarter into a $3.4 million net profit for this year’s second quarter, however, it still lags behind Huya’s $17.7 million net turnover for the same period.
  • Douyu’s average MAU rose 32.6% year on year to hit 162.8 million, beating Huya’s 143.9 million, which had grown 57.3%.
  • Douyu’s average paying users more than doubled to 6.7 million while those of Huya surged close to 50% to reach 4.9 million.
  • Douyu expects net revenue growth to fall between 90.3% and 95.2% in the next quarter, substantially higher than Huya’s expectation of 66.1% to 72.3%.

Context: Douyu had been rumored to go public in the US for more than a year. A week before listing, the firm switched its IPO to the Nasdaq Global Select Market from the New York Stock Exchange.

  • Douyu raised $775 million from its US IPO.
  • The company’s average revenue per paying user (ARPPU) rose 51.7% to RMB 226 in the first quarter, while that of Huya led with RMB 287.

Tony Xu is Shanghai-based tech reporter. Connect with him via e-mail:

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