(Yicai Global) Nov. 21 -- NetEase's shares fluctuated in after-hours trading in New York following the release of its earnings report. The Chinese internet and online game services provider boosted its quarterly net profit on the back of gains at its gaming and online education businesses.
The company's stock price [NASDAQ:NTES] fell as much as 7 percent and gained as much as 2 percent. Yesterday, the shares closed down 0.2 percent at USD287.81.
Non-GAAP net income from continuing operations jumped 74 percent to CNY4.73 billion (USD661.2 million) in the third quarter from a year earlier, the Beijing-based company said in its unaudited earnings report published after the market close yesterday. Revenue rose 11.2 percent to CNY14.6 billion after the firm revised its historical statements to reflect its sale of Kaola, China's second-largest cross-border e-commerce platform, to Alibaba Group Holding in September.
Driven by popular game titles such as Fantasy Westward Journey Online, Knives Out, Identity V and Blizzard Entertainment's World of Warcraft Classic, NetEase's revenue from online gaming services rose 11.5 percent CNY11.5 billion, accounting for most of its overall revenue.
"Online games remain the cornerstone of our business with steady growth from our existing titles and exciting new titles in China and globally," Chief Executive William Ding said.
NetEase's gross profit gained 9 percent to CNY7.8 billion, while net income attributable to shareholders came in at CNY4.7 billion.
Net revenue from the company's online education arm Youdao almost doubled over the quarter to CNY345.9 million (USD48.4 million) from a year ago. The subsidiary went public last month, raising USD220.2 million. Its shares fell 2.2 percent yesterday ahead of the earnings release, but have gained almost 2 percent in after-hours trading.
NetEase has made some major deals over the quarter. In September, the firm sold its e-commerce platform Kaola to Alibaba Group Holding for USD2 billion. That spurred more investment. At the same time, NetEase said that the buyer, as well as founder Jack Ma's investment fund Yunfeng Capital, will pay USD700 million for a share in NetEase Cloud Music, one of China's largest music streaming platforms.
Editor: Emmi Laine