Netease net revenues and net income attributable to the company’s shareholders increased by 15% and 46% year-over-year in the second quarter of 2019, according to its announced financial results.
Netease launched several new games in China and abroad in Q2 2019, further enriching their strong game portfolio that spans a variety of genres. In addition to Knives Out and Identity V, a number of new games have gained user recognition in Japan, including Life-After and Cyber Hunter.
Netease Q2 2019 Financial Highlights
- Net revenues were RMB18,769.0 million (US$2,734.0 million), an increase of 15.3% compared to the second quarter of 2018.
- Online game services net revenues were RMB11,433.4 million (US$1,665.5 million), an increase of 13.6% compared to the second quarter of 2018.
- E-commerce net revenues were RMB5,246.9 million (US$764.3 million), an increase of 20.2% compared to the second quarter of 2018.
- Advertising services net revenues were RMB581.6 million (US$84.7 million), a decrease of 8.3% compared to the second quarter of 2018.
- Innovative businesses and others net revenues were RMB1,507.2 million (US$219.5 million), an increase of 23.2% compared to the second quarter of 2018.
- Gross profit was RMB8,125.8 million (US$1,183.7 million), an increase of 12.2% compared to the second quarter of 2018.
- Total operating expenses were RMB4,639.6 million (US$675.8 million), a decrease of 5.5% compared to the second quarter of 2018.
- Net income attributable to the Company’s shareholders was RMB3,071.4 million (US$447.4 million). Non-GAAP net income attributable to the Company’s shareholders was RMB3,645.4 million (US$531.0 million).
- Basic earnings per ADS were US$3.47; non-GAAP basic earnings per ADS were US$4.12.
Netease Q2 2019 and Recent Operational Highlights
- Launched exciting titles in China including BuildTopia, Love is Justice, Sky and an updated version of Tom and Jerry.
- Strengthened global presence with NetEase’s games receiving international recognition:
– Knives Out remained popular in Japan and topped the iOS grossing chart several times in May and June.
– Identity V reached Japan’s top 3 iOS grossing chart for the first time in July.
– Introduced new popular titles in Japan and the U.S. including Life-After (previously known as Night Falls: Survival), Cyber Hunter and Super Mecha Champions.
- Launched a new video game studio in Montréal, with plans to hire local and international talent to further enhance NetEase’s research and development capabilities.
- Acquired a minority stake in Behaviour Interactive Inc., Canada’s largest independent game studio.
- Announced strategic collaborations with world-famous IP owners including Marvel Entertainment and The Pokémon Company.
- Advanced pipeline with upcoming titles including Fantasy Westward Journey 3D, Xuan Yuan Sword: Dragon Upon the Cloud, Pokémon Quest and Bloom & Blade.
- NetEase Cloud Music launched its community module known as “Cloud Village,” which influences the way users experience music.