Netease’s Second Quarter Profit Soared 26.6% Boosted by Games, E-Learning
Zhang Yushuo
DATE:  Aug 13 2020
/ SOURCE:  Yicai
Netease’s Second Quarter Profit Soared 26.6% Boosted by Games, E-Learning Netease’s Second Quarter Profit Soared 26.6% Boosted by Games, E-Learning

(Yicai Global) Aug. 13 -- NetEase’s gross profit surged 26.6 percent in the second quarter on an equally strong rise in revenue as the Chinese game publisher’s e-learning and online gaming offerings proved increasingly popular.

The Guangzhou-based firm scored CNY9.79 billion (USD1.39 billion) in gross profit from April to June, while revenue was up 25.9 percent to CNY18.2 billion (USD2.6 billion), the firm said in its first earnings report since its secondary listing on the Hong Kong stock exchange in June.

Earnings were driven up by a 93.1 percent increase in revenue from its online learning platform Youdao to CNY623.3 million (USD89.8 million).

A larger portfolio of video games, including EVE Echoes, Fantasy Westward Journey H5 and Knives Out, saw its gaming revenue jump 20.9 percent to CNY13.8 billion (2 billion), while its e-commerce business Yanxuan had a 38.7 percent rise in revenue to CNY3.7 billion.

“In June, we celebrated the 20th anniversary of our listing on the Nasdaq, as well as completed our listing in Hong Kong,” said Chief Executive Officer Ding Lei. NetEase is one of several US-listed Chinese companies that has sought to return to a market closer to home as tensions between China and the US escalate.

NetEase’s Hong Kong share price [HKG:9999] closed up 3.57 percent today at HKD148 (USD19) while its US stock price [NASDAQ:NTES] rose marginally to USD475.59 before market opening.

Editor: Kim Taylor

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Keywords:   NetEase,video game,NetEase Cloud Music