Brief News: Game-related revenue increased by 12% year-on-year, NetEase earned nearly 30% more in the third quarter
NetEase's revenue in the third quarter grew by 8% to 28.36 billion yuan, and net profit increased by 27% to 9.5 billion yuan. Revenue from games and related services grew by 12% to 23.3 billion yuan, continuing to be the main source of income. NetEase founder Ding Lei stated that they will focus on successful game projects and explore the application of AI in games. NetEase's U.S. stock rose by 0.40%, with a cumulative increase of 52.7% year-to-date
NetEase Inc. (9999.HK; NTES.US) announced on Thursday that its third-quarter revenue increased by over 8% year-on-year to RMB 28.36 billion (USD 1.3 billion), with growth slowing from 9.4% in the second quarter. The net profit attributable to shareholders under non-GAAP was RMB 9.5 billion, up 27% year-on-year.
In the third quarter, revenue from games and related value-added services rose nearly 12% year-on-year to RMB 23.3 billion, continuing to be the company's main source of income, with online game revenue accounting for 97.6% of the segment's total revenue. Youdao's revenue was RMB 1.629 billion, an increase of 3.56% year-on-year; NetEase Cloud Music's revenue fell 1.8% to RMB 1.964 billion. Revenue from innovation and other businesses declined by nearly 19%.
NetEase founder, chairman, and CEO Lei Ding stated that the company will focus on and continue to invest in existing successful game projects, adopting a quality-oriented strategy for future new releases to avoid resource dispersion on new projects with insufficient confidence. He also mentioned that significant resources have been invested in researching the application of AI in game innovation, development, and operations.
After the earnings announcement, NetEase's U.S. stock rose 0.40% on Thursday, closing at USD 133.95. It has increased by 52.7% year-to-date.
Li Shida
