Q3 2021 Douyu International Holdings Ltd Earnings Call
Okay.
Good morning, and good evening, ladies and gentlemen.
Thank you and welcome to do use International Holdings Limited third quarter 2021 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.
I will not in the pool.
Speaking today Lindon.
I am a director.
Please go ahead.
Yeah.
And Kim Hello, everyone will come to a stop Quant 2021 call joining us today are Mr. Shao Lee Chen.
Chairman and Executive Officer, Mr. Naming Sioux Chief Strategy Officer, Michel Cao Vice President of Finance.
This led to have us in Nashville laid out well.
On our website and I I thought though.
You can also check a replay of this call when it becomes available you'll see.
Our web site.
Before we start please note that this call may contain forward looking statements.
The safe Harbor provision for the private Security Litigation Reform Act of 90 95.
Forward looking statements are based on management's coverage for patients and observations that involve known and unknown risks.
Uncertainties and other factors not under it.
Hotel, which may cause actual days out performing well, let's see myself the company to be materially different from the Ms outperformance.
Patients inside.
Okay.
Also a lot of salmon expresses quantified is there in tiny but cautionary statements risk factors and details of the company's filing with that do you see the.
The company undertakes no duty to revise or update any forward looking statement, what's the like the events or circumstances after today.
Date of this conference call.
I will now.
<unk> ophthalmic chairman and CEO Mr <unk>.
In the third quarter, we made solid progress is slow in yogurt flavored yogurts traffic and the revenue generation, while maintaining steady models of alcohol.
Total net revenue was $2 35 billion RMB and COO.
What are they average paying user accounts like seven two months.
Notably I would.
Mobile and they use for the quarters sustains our growth momentum from the previous quiet way to fix it.
One 9 million, representing a three 9%.
Well.
Two key factors drove our yoga.
You'll note as well.
As mentioned in our <unk>.
Last earnings call, we continue to benefit from the broadcast of several large scale esports tournaments.
Such as the L. P L Sandler graphs, I know 'twenty 'twenty.
They still okay, not only attracting new esports G&A, but also going I E.
Who they choose.
Second we deepened our collaboration with top tier game hematopoietic, while also increasing our investment income.
Hum.
And the so called it with high note with a Y link of the Malibu.
Yeah, and the lung Hell gate swap has one well strengthen our promotional and operational effort on this new game.
For example, in the quarter into Q2 mobile games, including Battle, Oscar and Thanks, a lot and haven't played magic.
She loves theories of content and operation related activity.
Collaborating with gains you might have heard in the lungs, and marketing spaces, well this game, who named Chris You'll go bad.
Baidu. According costumer two great quality content for this game.
In fact people that highlighted eating seafood utilizing borrowers gaining California succession successfully addressed many light and moderate Gamer cloud paas.
Now turning to our content update.
The solid foundation of our comprehensive content ecosystem.
Our user base expansion.
In the quarter we.
We continue to innovate our comprehensive content library with expanded games generally generate personalized content for each game to cater to a variety of community refine our paas, one operation and kill the wage a widely game centric content community probably use it.
To elaborate in the domain of large scale esports tournament, we really cant Arab health partnerships like Nevada.
Continue to provide high quality esports content and sports.
We have action between our customer and our esports content.
Focusing on life forecasting as a core operation for large scale esports tournaments sleep for Whiting multichannel that session and in house produced a P. D C content to meet the why is really all about where you need it.
In the quarter with full cockpit or 16 large scale esports China.
<unk> always 70 esports tournament in house.
Notably with more cockpit system, the alky, Alex some of 2021 tournaments, which is the highest level league of legend well, it's actually most of our lines in China with the Lady content.
Uh huh.
The mobile phone with successful Cascade, new mobile users.
Incentivized operational and marketing initiatives.
Well for the Cheesecake Elite League 2021 students doing tournaments official has the highest the T exports actually no Chinese meat.
A number of Influencers.
Also our peacekeeper elite tumor to participate in the parliament the courage and analysis.
Extremely taxing and improve the overall daily.
Meanwhile for D. C F M L Summer 2021 to put them in a professional league for close fly mobile Walkaways game developers, who long promotional programs.
Hi, Matthew in game items to drive yield they'll go out Jimmy.
User engagement and improves they really being extended.
Furthermore, we are packaged and reaching new users and the gamma knife. It with him Oh, you do see a number of marketing campaigns and related hobbies potion, our self pretty esports events.
League of legends, China, what's it sounds correct deal.
During this large scale esports tournaments.
Also incorporated an on demand playback functions and produce a theory of relevant legal case flashy and community discussion.
To enhance user engagement in the non life for constant currency.
Well known esports games and damage to call them more games generally even cooperation with more game developers and strengthens the operation of each game lifecycle.
Given that non esports gaming content is that there'll be huge in the graphic and video format.
We upgraded our board a feature Wisconsin integration of nice Jami, Vickie graphics and community interaction.
It's more high quantity gamer and common courthouses 12 platform.
Yeah, Houston, we continue to refine our operations, how would you rather than England somehow topics.
I need interacting discussions among developers.
How can query and you use it.
Through our high quality content and optimized support our future.
We're able to me why with yoga needs for entertainment Lenny and interaction.
That's attracting more users to our platform.
More importantly, we have made good progress improving our operating strategy for each segment.
Nice to meet you.
Graphic and community.
Actually for our original long known esports games.
For example, our flagship game launched in the last quarter, Nebraska Blue point, they can its growth trajectory into a quiet showcasing how user thickness our platform.
Well other new games long student support it better off Gordon Bachelor and Harry Potter Magic Awakened also performed well at least I'll glue user engagement and increasing life being born.
This improvement are moved out of our continued commitment to accumulating and supporting top kids stainless.
My own content offerings.
Optimizing our segment operations and upgrading our platform with more he's asking for that feature.
During the quarter to augment our content production efficiency, we committed additional resources to our research and development capabilities.
For example, in South, Florida, we launched a new content production Chi and the one liter production function.
Next turning to our web site with.
With this to use their candidates and the added the mid east two minutes of our last two sessions and automatically upload the antibody content from a BD and the community segment.
We expect that this update will include UGC comes in quick I can see you have them.
Seemingly interaction wasting our community.
Going forward, we will continue to execute our game centric content ecosystem strategy.
We will continue to enrich our offerings of game content to meet that that once you find them yourself all the uses and attract more users to our decline operation of new and existing popular game.
Now turning to monetization in the third quarter, our quarterly paying users totaled $7 2 million was down a pool of 300 D.
We were able to sit stand the size of quarterly paying users as we continue to execute our proactive offering journey to improve user engagement and paying user consumption.
We also keep exploring new monetization masters well maintaining stable revenue contribution from the traditional model.
Let me also touch briefly on our development in overseas market.
Now all of them and then one of the top ranking mentioned video game life journey App in Japan for the last two quarters, according to and given that the yoga base is achieving scale.
The meld them commercialization do you want to put it and.
We made meaningful progress.
In the future we looked for their solidify our market position in Japan.
And sends the monetization capability yourself mountain, well optimizing operation efficiency to maintain healthy growth.
In summary.
Third quarter, we made some headway Inc.
Well as you can well maintaining the development of alcohol beverages.
Building on our industry leadership in lifetime, we're keeping to our collaboration with game developers and multiple dimension.
And for why did gain most end users with comprehensive content offering.
Life premium video graphics and interactive community.
Leveraging our competitive strengths in haynesville, good consumption and what's a good thing.
We will continue to explore diversified monetization model.
Improve our financial performance due east back to put us in that let's see last night.
Engagement and content operations.
With that I will now turn the call to our best practice Finance Mr Hotel to go through the details I'll start with an ankle performance in the quarter.
Thank you Li Hello, everyone.
So it doesn't matter.
I'm good.
Well on B T point.
Got it.
Let us really revenues were RMB, two 1 billion.
Based on these key points.
In theory.
All lines premium business remained relatively stable.
A long term sustainable operating strategy.
The year over year.
Decrease in much premium roughly was due to several notable client engagement.
We launched in the summer of last.
Last year.
The increase in paying user conversion.
Resulting revenue.
In comparison.
This decline was partially offset it.
Danny.
Absolutely.
Per paying user.
Think about implementation more.
Operational strategies.
Advertising and other revenues.
This is Kevin.
Got it.
How do we is RMB 197 meeting.
Okay.
The year over year deeply.
Finally, due to Todd Kelsey Papau, new commercialization model.
Advertising topic.
I see.
It's true traditional.
As a result, we put C T.
So up on revenue gains improve sustainable long term growth.
Yeah.
Revenues in the third quarter.
And to what degree.
8% to RMB 2.0, sorry.
<unk> billion from RMB.
RMB 2.1.
In the same period of time you can do.
Most specifically.
Sure.
Cotton cost decreased.
6% RMB, one 8 billion from RMB, one 9 billion and.
Thanks, Gary.
Good.
The decrease is mainly used to decrease live streaming revenues.
This decrease was partially offset by higher spending on esports put them in.
<unk> was an additional investment.
Prior to Covid production.
We continue to invest in high quality gaming content.
Some of those costs.
What if anything.
Do you want to decrease by three 4%.
AMB, Los Angeles trying to stage III.
Neither.
RMB 100.
60 911 million.
Peter.
Yeah.
This decrease was mainly due to lower.
Bandwidth cost.
When you see from improved procurement efficiency with major suppliers.
Currently due to love crime with huge costs.
We saw continued technology upgrades.
Yeah.
Gross profit in the third quarter.
<unk> was RMB 258.
Glen made it out.
Out of which RMB 369, 4 million in the same P en route to an event.
Gross margin.
And you can do one more.
11, 9% comparatively 14, 5% in the same period.
This decrease was primarily due to the decline in revenues exceeding decrement of revenue sharing fees and content costs.
Yeah.
Sales and marketing expenses in the third quarter and it can be one well RMB 218 million.
The increase.
So D C pumps speaks person.
On the 163 million in the same period of time attendee.
This increase was mainly attributable to the increased cost from each largely traditional promotional channels for user acquisition.
Research and development expenses in the third quarter of 251, RMB 100 on the 20th suite to meet it.
Representing an increase of.
One 4%.
M B, a non plastics, meaning the same theater.
Yeah.
This increase was primarily due to increased investment in technical personnel.
Oh.
Overseas expansion and infrastructure upgrades.
He hung keep all user experience.
General and administrative expenses in the third quarter of.
Q1 was RMB 86.
<unk> decreased by eight 1%.
RMB $94 2 million in the same theaters.
Yes.
Yeah.
Adjusted loss from operations.
Okay, and then can do you want.
Share based compensation expenses.
RMB nine 1 million compared with adjusted operating income.
<unk>, one <unk> meeting in San Diego.
Indeed.
Net loss in the third quarter.
One was RMB 100, Unfortunately my community.
Hum.
Compounded with net income of RMB nine.
$9 6 million in the same period kind of vintage.
Adjusted net loss in the third quarter, finishing two one which excludes share based compensation expenses.
South of England, and can miss any investments and impairment.
The impairment loss of investments.
A RMB 72 million.
Me too.
Comparatively adjusted net income of RMB 97 million in the same theory.
Yeah.
For the third quarter of plenty to do one basic and diluted net loss of RMB.
RMB three seven.
M D C Stanford.
While adjusted basic and diluted net loss.
Well I can be.
<unk> and R&D.
D 0.16, <unk> that's good.
Yes.
Okay.
Timber.
I didn't do one the company had cash cash equivalents.
Restricted cash and short term.
Long term package.
<unk> be at Massawa and 78 meter.
We beat the massawa in each country.
As of December 31st.
We would also like to provide an update on that.
Fusion of share repurchase program announced on August 30.
Do you want.
Which the company may repurchase up to the startup was immediate.
Until others 2022.
At September 30.
One the company had.
We purchased an aggregate dollar ballpark 3 million worth of it is under this program.
Going forward, we will continue enhancing monetization.
While further improving our monetization efficiency.
It really has to be continuous growth.
We're focused on further utilizing our operating leverage to support the sustainable vitamin a pencil.
This concludes our COO, who counts the bumps for debate.
We are now ready to take questions.
Thank you very much ladies and gentlemen, we will now begin the question answer session.
To ask a question you made pretty star and then one of you touched on the fact.
If you are using a speakerphone please pick up your handset before pressing the keys.
Just withdraw your question. Please press Star and then two.
Our first question is from <unk> Zhang of Bank of America. Please go ahead.
Yeah.
Oh, well I can tell myself all it takes is that's all that's left a whole lot of at once you can you go through your Guangxi Hollywood's in what form you end up at all without talking about Oh.
I'll sneak them you don't want to I'm not sure. The only thing that you've got a whole bunch of hole. That's in all kinds of girlfriend. So that's all I have.
But once you do all of this is all times, all 19 pie called them doesn't go away from.
Oh, Yeah, Oh, yeah.
So you can kind of being high I called out that oftentimes it means all adult all.
Based on how well they did it go to what's the right. It sounds like they all kind of things don't go exactly how they'll want that oh, well Merle karnes I'll take longer but you're talking high that you don't get a woman I'll call. It is a global housing.
You can see it for yourself I hope it doesn't.
Okay golf centric and industries group of golfers.
Oh, you know what the whole banking Oh, that's not demand for taking my question I'll touch on here of course.
Oh.
Oh, I do see an impact from the Swiss banks enough game approval post athletes in play at the Houseware, you'll pass of regulatory change going forward.
The night, maybe a cooperation like ultimate you can say Oh do we see the increased computation and the likes you and the whole sad and I didn't pass on the increases I've forgotten your salary so across all your major peers in the house. The way you look at our revenue fell lethal going forward. Thank you.
Okay.
Well I would I have to go gotcha.
So again, so you have to go timber timberland from you know all of them say that people shouldn't that's easier she found what John saying putting them in a trial that you go to the side of it.
Yeah sure sure sympathize.
Yes.
Especially the teacher somebody's kidney.
I was younger ones.
And.
So somebody that you're supposed to do.
Someone actually.
Turning to bottom and see how that kind of won't come on switching.
Sean.
No not at all.
Sure.
Trio Anthony.
Yes, it does.
We should know housing.
Okay got it.
Yeah.
Sure.
Each other you know.
Some of them in a box component should be about holiday she does.
Triple on answers what continues Shockwave treats where it gets harder.
Sure.
Yeah.
That helps.
Uh huh.
Just your draw that he goes to the gym.
Hum.
Okay.
Sure.
Okay.
Uh huh.
Uh huh.
Which was a shocking to me John.
Oh sure.
I don't see a huge.
Essentially all of them.
But you didn't actually charge.
Hum.
Hum.
I'm sure you can absolutely you got to go through.
Cool.
In central Washington should be true.
Totally separate them pretty much all this and you don't know for sure.
Nothing.
James.
What should I say you take parts of it.
Hum.
Okay.
Great.
I think it might go down you'll see what I'm an entrepreneur.
He's got some vision.
John.
Yes.
You're welcome.
So you shouldn't have been done.
Sure.
I'm curious how you see usage over time.
It should be in the functional them.
And what should be the history books Chichester, She's all that she likes what he goes without a hitch.
Even China.
Which is familiar.
Sure.
Got it.
She does.
Some of the countries.
Excellent.
Before she has talked about.
It wasn't in San Francisco.
Why don't you do that for you.
This is a kind of insurance.
Young children.
Okay.
Okay I'm sorry for your first question regarding day suspension of new games to launch of new games.
So I'll go to that is we have not seen.
And a significant impact on existing yogurt, okay Ah in trauma congratulation Yeah true one is its just bang shall we see the launch of new games, how can they ended the other Reits actually causes the motivation for it.
Of course this.
This expansion of new game launches, it's actually Neil can have.
A slower impact on the new user acquisition for US is that we have seen the approval of new game.
It's not Oh did rather than be this has been changed actually cause I J P. 10 days for a pool of new game, which weighed believes there are there will be more kind of high quality game launched into the market, which will be beneficial for us.
And for the whole gaming industry in the long run at.
Recently.
The quality of the new game launch, our Paas, well I'm actually very high attack.
Backhaul off Gordon that's a level, we haven't seen quite encouraging.
<unk> operations over there.
So for the other.
Other edge they count on the motivation come in manager management, especially regarding they handle a game like dawn path I.
Let's see approval to distribute domestically and for that we will gradually adjust to our content offered on the platform to ensure that our commercial Oh my hands. He and she was a part of the game on that.
Hence we.
We will make sure that those contents are fully comply with Coca Cola and congratulation.
Regarding to your second question on the a.
Comparative landscape all the streamer resources.
Actually currently the swing.
On the account.
Well not be affected by.
I know I know.
A competitor.
Is that true raising their sharing our revenue sharing percentage.
Of course, we have seen that Oh. The first is the number of products available in the industry is quite limited. So it is very hard for new entrants.
To establish a a swimmer handle ecosystem that is oh can be competitive with existing platforms.
And the other thing is that a thing they still are.
Our odd from moving the trim platform on the common contract. So we have seen that they call like Oh, I'm patent landscape landscape for thermal resources.
The man quite stable.
So it is so in the light of all the factors above all other paas alone will not be able to have that high quality streamers nearly by increasing their revenue sharing fees.
And especially informal promoting new games.
We actually collaborate with game talent agencies to import a lot number of streamers to ensure we have the quality and quantity of new game.
And the offering before each game segment.
So wait wait and we have the you know we have a lot of operational no house and big data analysis to.
To devote resources to those new streamer and help them to become the top streamer four hour Neil game segment.
In terms of revenue sharing percentage actually we offered certain incentives to spend my feeling some promotional period.
So therefore, the old revenue sharing ratio may fluctuate from quarter to quarter, However would be amazed at our Kung Deputy Chairman ratio is a reasonable and we will adjust it according to the industry dynamics going forward. Thank you.
Okay, that's great.
Cool.
Great. Thank you.
Thank you. The next question is from Thomas Chong of Jefferies. Please go ahead.
Yes.
Well, it's all.
So what are we doing.
And go ahead and tee because one it.
I'm, sorry shipping and kite, Tom Mark I thought you already gave a woman's the most concrete magazines I'm good.
Boy, you do get a whole chunk.
Got you.
That's one thing.
What you don't.
Excuse me the chance you'll hold your carbon future.
Yeah.
It seems that I'm, saying is I don't see that got logica.
So you brought up at all.
This assumes two five times.
Yeah.
Great.
Yeah.
So if you go into your watch brands must be done no gentlemen, Hello Hunter before shooting what we can tell you that.
Jonathan good usage.
No.
Oh I'm sorry.
Just a question that we are seeing the online video platform.
The deal also investing in the <unk>.
Right.
Well first of all of them.
How we should think.
The competitive landscape and also how we can beat the market going forward and my second question yet.
With regard to the newly launched games in the market, which one are we seeing.
And anything you can be sure. Thank you.
Yeah.
French drunk on fidelity, because eagle into the Hunter It can go.
Can you make understanding I shouldn't sneak in Arizona.
Not to find a home and kind of kind of attacking the issue behind you does it does.
So now that you got.
Female.
Yeah.
Wanted to follow up on them.
So he said.
But if I had missed that shouldn't your boss.
Okay.
Two of them two.
Hum.
And general public as much we can comment on what she should not Miss what you should think Mississippi lime to switching.
Oh man hydrocodone.
Junction in a transaction or teaching that Tricia talked about you'll see somebody who just went up whether you will see triple.
She's got all that comes with it you go swim.
I appreciate that.
She uses.
Okay.
Thank you very much we want to get that.
So, but that you shouldn't do that and they're shifting especially about for a minute.
Okay.
Okay.
The change in front of it maybe.
Hum.
Sure.
Yesterday.
Do you want me to answer he or she lives in Chicago.
Yes.
So he wishes for companion.
Oh, sure, but that should be bullish on it.
I don't see them.
Hi, Sean.
Baton Rouge.
Sometimes she did them.
Putting that much more in terms of English.
Oh, yes.
Thank you Doug.
John Samsung.
And Congress you end up with them.
It's like isn't it.
G was true.
And then just one quick one.
True.
Yeah.
Oh. Thank you so much and for fourth question is that we have.
Nashville.
So quarter of this year.
No significant changes in.
In terms of the competitive landscape in the game live streaming industry.
Everything that's tumor.
Are prohibited.
Moving between pads or a contract here at the competition in the industry has remained quite cannot be stable stabilized.
So we have seen that.
Video platform have been expanding.
Expanding into the game live streaming sector.
<unk> has generated more traffic for the sector.
We believe this will attract a more diverse you'll go through to esports and listen large the potential market size for the entire game live streaming industry.
So on top of this weight upgrading.
Content.
Our content ecosystem, including video and community and establish a quite comprehensive content library, probably covering a wide range of game genre.
So you're not seeing Oh, I'll add one strategy is to it.
Publish our game centric content ecosystem, so leveraging our in depth understanding of the gaming industry and the rich it's.
Excluding accumulated over the past few years, we will continue to innovate our game content offering QD wage a librarian game centric content community.
And then I've got more users to our platform.
So we will continue to deepen our cooperation with game developers to cover more game genre or expanding our content carriage fees.
Esports tournament to cover 90 esports games.
And we aim to build a integrating content channel four H the gangway offerings.
Oh wait the names that you know by enhancing the interactions between yoga satcom creators on our platform and by offering more high quality upfront.
Our content.
We will enforce our leadership position in the game centric integrated content platform.
Let me answer your Opex question.
Or was that with a strong momentum for a number of in game with Baxter.
This year.
Leading narrowcast black hauling to nudge that in dry, but all the Golden study, we're a notch down in Pakistan and Harry Potter Magic.
Launched in September.
September in the months following the launches the overnight screaming volume and the user engagement increase their body more than one time grants, but Santa Monica couple of months.
Its games continue to perform well under our database gaining popularity on the import banking grandkids all games on our platform.
Especially narrow couple of point became a top 10 game and comfortable towards won't go there.
Mr. Bender in divert screaming Jordan door or so for the quarter.
We are at the forefront of our industry.
The non marble top streamers.
Screaming body.
Zurich engagement for these new games.
Consider the arbitration itself each game segment.
A great Starbucks.
Linda offerings by integrating with screening video platelets.
They are granted a certain degree types to meet a barrel relative yoga or neither.
But he never return to our target of three months of two photo of anticipation and excitement among our target consumers or prior to the launch of its new games on to recruit a new framework to ensure the quantity on the quantity of our content offerings.
And at the same time wave poorly.
Each game to be for us to increase the user engagement.
We promoted off highway parts and IP related to that.
In order to attract them all I can say.
Regarding the other brother cutting AVO, South, Georgia with it are pulling them and we continue to offer higher quality game content to our users to buy copper reaching based professional.
You've been to operators.
Our premium.
P G to contend to offerings have not only never dos two in Peru viewing experiences, but also kinder recognize Asia under support if I'm a game developer.
Some general.
Operations and support the full life cycle, although again have generated the marketer of both of these are.
Attracted many new users to our platform.
First by our commitment to our operation and those trends are they all how can we can diversify the gaming centric content community okay.
Yes.
Operator next question please.
Thank you. The next question is from U N Gen of China resistant organisms keeps going to need.
Hey, Trisha According to watch all what's the band I'll, let you talk to enjoy yourself when you go into a corner.
I'll show you an idea of what might come to us So really it's actually a crucial shamble. Eventually go to borders are inching closer to Hill elementary and junior who shall hold at shipyards out there what's your personal Shea.
Elements of it according to thank all of a sudden it there, though so I'm going to touch on yet so I cannot sit here showed you a quarter or so.
So by sheer teachers Socal.
So thanks.
Thanks for taking my question I have two questions about platelet count into our business.
Right and badgering them, we'll borrow but hydro as a dollar tree or the October all of this performance our pet.
Thank you.
Auto Dodge titles do you expect to kind of what people would do it would be and then secondly on the.
L. A what a 10 day trip or F 10, a month part of it yes.
Our pro forma fixed.
In terms of the operation metrics revenue contribution thank you.
Let me answer your pets were in Florida approached regards hearing about Oh Wow.
Mobile.
Accumulated there basically.
Can you talk to I know you cause to be honest.
Hum.
Do you see working over the past three years on top of all the data we believe our integrated the operation approach for how well it will be beneficial to our overall operations at all our mobile first.
You know, it's all about how L. P C Washington, either forced their bedroom, all but yogurt is.
I wish it was.
Throw on top of our operations to uncle Al all.
Okay.
Talk to a separate.
Yes, yes.
We have with Nintendo conversion rates from our L. P. C player with a two hour. It was there was it had a high level.
This is a clear reflection.
It's a highly suitable for a lot of screaming the launch of our mobile will further galvanizes. Our return of all the players to watch it relates to the game content on our platform.
Given the easier to play pay towards mobile, we expect our mobile and I'll relate to the game content on our platform.
It's continued to increase.
The second Oh, we have a large pool of a higher quality.
Three months, what kind of our top three months from now as the PC second the scrutiny.
Mobile games to be able generate capital further mobile Washington on the other hand, our tier three months pool alone.
To quickly calculates its a good market.
Internally for Allied World and generates a premium gaming can tend to more efficiently.
In addition, our long term collaboration with 10 center allows us to effectively integrate to our promotional efforts to visit a L. L. O P. Sol contains an activity that's enjoying.
Mind, you that you've done and sort of emotion on the operation.
The mobile piece.
We saw one thing just to mention a bottle when he started I'll cover 18 basic empty my partner three months and video greater since the Orleans are testing the job of our mobile are twofold sort of anticipation and excitement among target consumers.
Consumer.
And Additionally, we got into the premium arm to be more signed up we do great horse to January the PUC content on the gain relates to the hot topic.
Our leading position in the operations you'll game.
No problem.
Probably you already although I love it.
Mobile has continued to increase since its launch in October some through our calculation and that's a part of all of the top three most of the integrated the operations of all of our live streaming video on the granting.
I think a contingent on parent Alger promotion in association with the learning.
Watch, having sheep and Crs, although it sounds cardio to contend to sometimes.
Don't read my third tournament.
She was a strong growth momentum for our mobile <unk> since its launch.
Thomas I'll go a whole lot of streaming and body of Amanda duration, whereas with user engagement.
I have mentioned on the onset the president and some other.
I'm sorry, the Arab World.
Can you share if it gets a lot easier.
Opex will.
And you told them anytime there has always attracted a lot of now Bob will be worth it.
It has always been a strong second the number of hours that we have with in tablets. We started all the delano three Martha and market they've got three more under control the ecosystem.
For this segment.
Oh, Dear Oh, we fully leveraged our race contango, resulting tool provider not a screaming contender in various formats.
The program.
Pizza on the co broker cocky, all but one of them and I know I'll be sure promotional event late in coverage.
And on demand.
Playback of function on the parity with our theoretical relevant video clips.
And.
J P discussion.
In addition, we provide the mobile viewing for me.
Equally being harvested and Tor viewing position to Thunder coming into our mobile users.
Are most of the initial changes that have improved our user engagement up all the fundamentals.
Is that a viewing experience and attract more branding.
Travel are plentiful.
We also achieved a.
Significant progress on creating a singular between tournaments and gamma.
Throat or the proxy on obligations that.
If you love it.
John do you have the higher quantity of screen when you talk to us about that.
I had a phone, but the gravity of a larger user base and the high level of user engagement.
Waste successively in cargo game platform <unk> will play out again.
However, neither in active however, kmarts to retain.
The total viewing time for Ursula and good momentum reached a $1 billion.
Viewing time for our in house graduate degree programs.
Wow.
Sabbatini meeting a mall and calculate total interactions on our I still haven't.
Community Hospital.
Hospital 100, the meantime demand.
The main street team that our barrier to contend that becomes a more appealing to our yogurt okay.
Next question.
Okay.
Thank you next question is from Henry Chien.
J P. Morgan. Please go ahead.
Yes.
Hi, why do you sound like a whole country, it's a shoulder to that which I didn't die Daniela Chinalco Vinci, you're going to be sure. We're gonna switch at all even when you see a trend going back to Jim.
And what should the council known for Southeast Asia.
And she has hit most of the times of a chip so I'll find out and see now with the juggling tissue guangxi.
Just how are you.
Thought you'd make chocolate golf on the team I would translate myself. Thank you management for taking my questions. I'll ask you two questions on behalf of Daniel Firstly, you mentioned that the company seeking additional ways to diversify our monetization by leveraging some traditional advertising resources.
Give us some more color on the kind of progress I know your expectations on that second question can you brief us on the progress of $100 million share repurchase program. Thank you.
That's the first question.
It generated advertising revenue offerings.
Walgreens game and a friend.
Hi, guys.
Brand advertising revenues remained relatively stable driven by stable user traffic.
We have just brought in.
Implementing new monetization model, so it didn't gain attachments and resources.
On the traffic side, we sacrificed propulsion.
Hershey to reallocate some.
And a commercial less premium to sausage.
New monetization model.
On the advertiser side, which led to some premium advertisers incorporated within sport.
Monetization opportunities.
Regarding the new monetization model, we established a small distribution system for new games.
<unk> game developers with live streamers.
And to be able to release promotional campaigns on our platform.
Live streamers and choose stamp per se promotional miss it.
Keep demand into smart system, we hope to boost that's crazy, except to news and game downloads Activations and.
We have rolled out a number of initiatives to support its growth.
Bruce we have developed a variety of pending lobbying.
Yes within the system to support our life's papers, they encourage users to download and activate.
Second we have motivated us gamers, but it.
Implementing sandeep plans directly connected to promotion effectively said we.
Okay.
<unk> teammates join us by promoting his studies and offering systematic training.
Plus we have leverage.
<unk> capability for ceded Banshee Crazy.
Distribution between gain resources, an upstream there's traffic.
If this sort of debate as well we believe it will enable us to better leverage was at 21 clinical a joke his femur individuality.
They are capturing the traffic's attached you did.
Elements of this model will enable us to generate more value looking at the meadows and diversify our income sources.
<unk> gave us.
Actually this is a market distribution system allow us a look.
Information protection.
With respect to debt repurchase.
Okay.
As we announced.
Total 100 million.
Repurchase program for a period of up to 12 months.
September 30th 2021 we had repurchased the startup for suite meeting with folks.
Yes.
Okay.
We are starting to show with purchase immediately after the announcement.
Yep.
Actively executing the program.
That's a good point by regulation.
We have also appointed professional institutions execute off shelf repurchase schedule.
Subject to current market conditions.
We will continue to provide updates on the honest pulse in the coming quarters. Thank you.
Okay. Operator next question please.
Thank you. The next question is from Ed <unk> of Morgan Stanley. Please go ahead.
Okay.
Having said plenty of times yourself into Q1.
Do you want to see quite a you will then youll see it again, well kind of what are your charts or Jean Fontana Konkle realize you'd see.
Thiago when do you think why you won't bad dye high Washington, I'll try that one.
Well that sounds Ito, we rely woman Joe So we're talking about it just yet.
My first question is regarding our cloud gaming business.
Can we get some updates in our future expectation for the business and second question is regarding our overseas business. How is the performance of your third quarter and what do we expect going forward. Thank you.
Okay.
Let me.
So that's the first time about the Columbus game.
After more than a year ago, because exploration basically our north about rapid bedser approach arbitrage of Agua Grande game now largely completed.
In there. So of course, we have also continued to update the data protector.
Stay towards the home from Columbia gas and chemicals for the Android mobile your wishes.
I hope all of her lifestyle.
We're pleased with that Columbia gaming with new development opportunity for the gaming industry. However.
I had.
Nothing to theater are limited by a number of what you should always start at the copyrights coetzer.
Give them.
The ability as.
As a game centric or contend to platform with <unk> its.
It's very well positioned to capture the opportunities don't give up to now.
Cognos gaming lottery.
Yeah.
Hum.
Yeah.
Hum.
I don't get on here, we're looking it up with 104, which turns out how about finishing pump.
Hum.
The tradition.
You do not have that John.
Like what's your that you've got to put anymore.
You need a mix of all the tools that you'll see at Jimmy Choo, which Sanjay parts of Orange that he due to himself the whole women's done.
Sure.
What you have mentioned.
You got to ensure that the easiest way to get them done.
Hum.
Well then you go about it.
We're not sure that it goes down the drain.
My father used yesterday, she knows that's something internally to pencil. She sounds you the potential of it so I'd say that's probably.
No John.
Sensitive about how that pushes that himself.
Shelby that competition.
Mr. Chen will address the question regarding the drought in the house or it is market.
For the overseas market is actually our strategy is to apply it was a traffic for monetization.
Over the past few years are flat.
Our domestic business in China has been for Batesville, which means the majority of that investment has been made overseas, especially in Japan.
According to App Annie.
Belgium has remained.
Has been named the top video game that you're in the App in Japan for the last two quarters and they use their site and has been a developing and sustainable and elaborate healthy level.
Oh things are actually.
May this year actually I was making a remote.
Sites in Japan, we actually aren't as high as our strategy from using combinations with traffic monetization.
Going forward, we will.
Monetization capabilities.
And narrowing gradually narrowing our losses.
So as such in the third quarter, we have continued improving our operational efficiency and a successful they would deal with our losses in this in the overseas market. Thank you.
Hugh.
That's a good question page I'll Clinton.
Yeah.
Thank you. The next question is from Rishi <unk> of HSBC. Please go ahead.
He said why don't you talk in general what she wants while you'll now go and see a peak of what you saw in Saudi shall be months I H T shirts shoes.
Yeah well.
The father pardon me and the team.
That's really cool so most of the whole not locally what comes out of the Ami and suddenly you've got some you've got nikolas yet.
You are going to die.
Hi, Neil.
But in the future.
A whole a woman who would be weighted I. They don't talk about that.
She didn't play odds.
Sure sure sure.
Let me translate the question myself first of all could you update us on the CEO and community feature.
Features what's the update and also help with that.
It should be a mall in terms of your second question is can you comment on the content cost trend in this quarter and what how would it trend going into the future. Thank you.
Oh eagle into those or whichever you want it to be phenomenal.
Sure so you're shifting especially.
Especially those who've got hit with some minutes ago.
Sure.
You know what that looks like but just come through you will see that you guys think you could play in front of me.
So I think you should actually go at different times about Houston.
If they don't call it an investor confusion.
Excuse me.
Switching to your property what does your partnership with shipping.
I'm not sure you're thinking he wishes to baidu.
There's obviously the function in the company I'm sure shoot attention neither.
Dividend, we can use in production.
Now shifting to Institute.
We've got to Austria.
Uh huh.
So you didn't.
I'm not sure that talks about that you do.
And even she does.
You saw your dealerships.
She doesn't do that please.
Please go ahead.
Got it.
Right.
So let me make sure books should equal interest from people should just kind of doing so.
The other one was on it.
I understand that Johnstown, absolutely you kind of seem to Quebec would be still determined.
And we will come back on your books should be shrinking for holiday.
So.
You'll see that Don mentioned.
You don't put up on their own.
Uh huh.
John is that kind of thing.
I mean the attention.
Yeah.
Yeah.
Okay.
Mr. Emery objective was the question I have is guarding the video content development and community building.
Actually our part of our content that works if he can't strategy.
Right from our competitive strength.
Traditional life changing businesses.
Compared to the nature of esports games makes the left Jamie the ideal distribution channel to present, the excitement of the content and ensure the continued content offering.
It doesn't satisfy the needs of.
E sport users.
And therefore, non esports games, and that's really not the fastest delivery channel to a flower users.
Instead immediate graphic content and community is a more diverse forms of media to provide content that has gained guy to cheerios premium videos.
And participation in game related activity.
So therefore, we are.
<unk> M D O devote additional resources to video wacky content and community for 19 sports game.
Maintaining our advantages in the traditional esports documents.
As you know live streaming video quality content and community Oh into interconnected as part of our content ecosystem.
We aim to create a separate segment for each game.
We're a platform a.
We will also call rights with cooperation with game developers to provide more comprehensive campaigns and quality content.
Oh all content format.
Oh wait wait and we're committed to offering more diversified content to satisfy the bandwidth.
The needs of our users and intent to attract and September or yoga 12 platform.
Your second question.
In Q sweep plenty to do on content cost increased year over year basis, mainly driven by <unk>.
Spending.
Or has two wives for 10 minutes, especially.
Additionally, we made further investments in PTC content production as we continue to execute our game centric content strategy.
So looking ahead given that pricing for the right measure to.
Womens had already been determined and that we have managed functional to close upon sales produce programs, we expect costs associated with esports tournament potentially rise.
Self produced content to remain relatively.
Stable for the foreseeable future. Thank you.
Yes.
Yeah.
Yes.
On behalf of the management. Thank you for joining our call we look forward to speaking with.
Anyone next part of every lot next players. Thank you.
Okay.
Yeah.
Thank you that concludes the call today.
100000 Kingdom and you may now disconnect.
Okay.
Yes.
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