DouYu International Holdings Limited (DOYU) is declining in the after-hours market after announcing its fourth quarter and fiscal 2021 results. DOYU values at $2.13, losing more than 6.5% compared to yesterday’s closing price. The stock closed at $2.28 at the end of the last trading session. The stock volume traded in the previous trading session was around 2.91 million shares. The current market cap of the company is about $460.66 million.
DOYU: Q4 and Fiscal 2021 Key Financials
- DouYu International Holdings Ltd.’s revenue in Q4 2021 was RMB 2,327.9 million. It’s a gain of 2.6% compared to the revenue of RMB 2,269.2 million in Q4 2020.
- Fiscal 2021 revenue was RMB 9.2 billion, less than the revenue of RMB 9.6 billion in fiscal 2020.
- The company’s net loss in Q4 2021 was around RMB 193.2 million, compared to the net loss of RMB 228.7 million in Q4 2020.
- DOYU’s net loss in fiscal 2021 was around RMB 620.2 million, compared to the net loss of RMB404.7 million in fiscal 2020.
- The company’s basic and diluted loss per share in Q4 was RMG 0.53, compared to the net loss of RMB 0.29.
- DOYU’s diluted and basic loss per share in fiscal 2021 is RMB 1.55 compared to the loss per share of RMB 0.88 in fiscal 2020.
DOYU CEO’s Remarks
Mr. Shaojie Chen, CEO of DouYu, stated that 2021 was a tough year. Faced with a difficult macro environment, we enhanced our game operations and created our game-centric content ecosystem for a broad range of game genres. Mobile MAU climbed 7.2% year-on-year during the fourth quarter to 62.4 million. We will continue to explore new growth opportunities by using our creative interactive operations and rich content over many media channels like live streaming, videos, graphics, and communities.
DOYU Share Repurchase Program
For up to 12 months beginning August 30, 2021, the Company’s board of directors has approved the buyback of up to US$100 million of the Company’s ordinary shares in the form of ADSs under a share-repurchase program. As part of this initiative, the company plans to repurchase shares using cash. By December 31, 2021, the Company has repurchased ADSs for US$16.7 million (RMB107 million).
The company is looking forward to delivering the value back to its shareholders through share repurchase programs. This reflects that the company has a strong balance sheet, and is as a result of this program, its stock skyrocketed when the news got public but is now losing value gradually.