Home NewsStock Market News NetEase’s online game division’s revenue was dazzling, pushing up Q1 performance better than expected | Anue Juheng-US Stock Radar

NetEase’s online game division’s revenue was dazzling, pushing up Q1 performance better than expected | Anue Juheng-US Stock Radar

by WOOWinvest
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<Financial Report> NetEase's online game division's revenue was dazzling, pushing up Q1 performance better than expected | Anue Juheng-US Stock Radar


NetEase, a large Chinese Internet technology company, announced its first-quarter financial results on Tuesday (24th), with revenue increasing by 14.8% to RMB 23.6 billion (units are the same below), beating market expectations of RMB 22.637 billion. The overall revenue contributed more than 70%, and the new game will be launched in June.

NetEase’s revenue in the first quarter (as of March 31) increased by 14.8% year-on-year to 23.6 billion yuan, a quarterly decrease of 3.4%; Non-GAAP net profit attributable to the parent company reported 5.117 billion yuan, an annual increase of 0.7%, a quarterly decrease of 22.4%; gross profit margin The growth rate was 54.5%, an annual increase of 0.6 percentage points and a quarterly increase of 1.5 percentage points.

By business, NetEase’s online game revenue in the first quarter increased by 15.3% to 17.3 billion yuan; NetEase Youdao’s revenue decreased by 10.4% to 1.2 billion yuan; NetEase’s cloud music revenue increased by 38.6% to 2.1 billion yuan; innovation and other Business revenue increased by 11.5% year-on-year to RMB 3 billion.

NetEase’s bright revenue performance last quarter was driven by the performance of the online game department, which contributed more than 70% of the total revenue. The stable performance of popular games such as “Westward Journey” and “Onmyoji” in the first quarter supported the basic market. , and the net growth of game revenue such as “Harry Potter: Magic Awakening” is an important factor for the company’s annual increase in gross profit and stable quarterly growth.

The company also announced that the blockbuster new game “Diablo: Immortal” jointly developed with Blizzard Entertainment, a subsidiary of Activision Blizzard (ATVI-US), will be launched simultaneously on mobile phones and computers in overseas regions on June 2, while in China and Southeast Asia The market is scheduled to go live on June 23.

In addition, NetEase Cloud Music’s net income growth has been impressive. As of the first quarter, there have been over 450,000 original musicians, and about 2 million original music tracks by platform musicians.

Before the deadline, the stock price of NetEase (NTES-US) fell 0.48% in the US stock market, and the share price was tentatively reported at US$96.57, the decline was somewhat restrained from the opening.

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