Tencent e-sports stars would play better as a team

DouYu International Holdings

23/08/2019 02:29

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Alec Macfarlane
    HONG KONG, Aug 23 (Reuters Breakingviews) - Shares in
China’s DouYu have crashed since its first results as a
U.S.-listed company. Video-game streaming rival Huya is gaining
users faster, spends less on sales, and is not as reliant on top
gamers. For Tencent, a big investor in both, it’s a new reason
to push for a merger.
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    On Twitter https://twitter.com/AlecMac11

    CONTEXT NEWS
    - DouYu International, a New York-listed Chinese video-game
streaming company backed by internet giant Tencent, reported its
first set of results as a public company on Aug. 13.
    - Total net revenue for the three months ended June 30 rose
133% to 1.9 billion yuan ($273 million) from 803 million yuan in
the same period last year. The company swung to a net profit
from a net loss over the same period.
    - Rival Huya, also backed by Tencent, reported earnings for
the same period on the same day. It’s net revenue grew 93.6% to
2 billion yuan from 1 billion yuan a year earlier. The company
made a net profit of 170 million yuan during the quarter, up
61.7% from 105 million yuan.
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Results statement     https://ir.douyu.com/Quarterly-Earnings
BREAKINGVIEWS - Chinese IPOs get a red card from foreign
investors     urn:newsml:reuters.com:*:nL4N24R0PO
BREAKINGVIEWS - Tencent holds key to China’s e-sports bonanza   
 urn:newsml:reuters.com:*:nL4N24G0D8
BREAKINGVIEWS - American markets are great again for Chinese
IPOs     urn:newsml:reuters.com:*:nL2N22K0NW
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Una Galani and Katrina Hamlin)
 ((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))