NetEase’s Net Income Surges 72% on Strong Game Revenue Growth

Yicai

2017-05-11

(Yicai Global) May 11 -- A surge in game revenue drove Chinese internet company NetEase Inc.’s [NASDAQ:NTES] unaudited net profit to increase almost 60 percent year-on-year to CNY3.923 billion (USD586 million) in the first quarter, the company’s latest earnings data shows.

The Beijing-based firm’s online game business expanded in the quarter with the release of The Yin Yang Master in Japan. Downloads of the game topped 200 million globally as of February 20. The total number of active users of Hearthstone, a popular game developed by Blizzard Entertainment Inc. and distributed by NetEase, vaulted to an all-time high.

Strong growth in game revenue helped the company log a net first-quarter income of CNY13.641 billion, up 72.3 percent year-on-year. Online game services chipped in CNY10.735 billion, up 78.5 percent.

The company plans to introduce its bestselling games, The Yin Yang Master and Land of Glory, to foreign markets later this year, Chief Executive Ding Lei said after the earnings release conference.

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