NetEase Releases Q2 Report Unveiling Gaming Success

On Aug. 7, NetEase, one of China’s leading internet and online game services providers, announced its unaudited financial results for the second quarter ended June 30, 2019.

The company’s net revenue throughout the quarter was 18.8 billion yuan ($2.7 billion), an increase of 15.3% compared to the same period of 2018. Online game services accounted for 11.4 billion yuan ($1.7 billion) of the total net revenue. E-commerce and advertising net revenues reached 5.2 billion yuan and 580 million yuan respectively.

Gross profit for the second quarter of 2019 was 8.1 billion yuan ($1.2 billion), compared to 7.2 billion during the same period last year. The year-on-year increase in online game service’s gross profit was primarily a result of increased net revenues from mobile games such as Life-After, as well as certain PC titles like Justice and Fantasy Westward Journey Online.

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Listed below are some of the company’s operational highlights during the second quarter:

• The company launched exciting titles in China including BuildTopia, Love is Justice, Sky and an updated version of Tom and Jerry.
• Global presence strengthened 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.
  – Introduction of new popular titles in Japan and the U.S. included Life-After (previously known as Night Falls: Survival), Cyber Hunter and Super Mecha Champions.
• The company also announced strategic collaborations with world-famous IP owners including Marvel Entertainment and The Pokémon Company.
• It 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.

“We launched several new games in China and abroad in the second quarter, further enriching our strong game portfolio that spans a variety of genres. Our global initiatives are well underway. In addition to Knives Out and Identity V, a number of our new games have gained user recognition in Japan, including Life-After and Cyber Hunter,” said Mr. William Ding, CEO and Director of NetEase.

“We are pleased with the progress we have made to introduce our games to international audiences and fortify our relationships with other industry leaders in the video games and entertainment markets. We will continue exploring overseas market opportunities and growing our games business on a global scale,” Ding concluded.