NetEase Profit Rises as Revenue More Than Doubles
November 11 2015 - 7:59PM
Dow Jones News
By Maria Armental
Chinese gaming and Internet giant NetEase Inc.'s third-quarter
profit rose sharply as revenue more than doubled, bolstered by game
releases.
The company's American Depositary Shares, up 51% this year, rose
3.9% in late trading to $155.90, topping the all-time high of
$154.88 set on June 17 during regular trading.
NetEase, which generates the bulk of its revenue from
videogames, operates Activision Blizzard Inc.'s gaming platform
battle.net along with "World of Warcraft" and other franchises in
China.
In February, NetEase set up a base of operations in Redwood
Shores, Calif., to focus on mobile games for Western audiences. Its
first mobile game, "Speedy Ninja," a sequel to "Ninja Must Die"
adapted for Western audiences, was released in late August.
At the same time, the Beijing company has been expanding
operations, building on China's thriving mobile and e-commerce
markets. It has launched an online payment platform and a
cross-border e-commerce platform, Kaola.com.
Over all, NetEase reported a profit of 1.88 billion yuan, or
14.22 yuan an ADR, up from 1.16 billion yuan, or 8.83 yuan an ADR,
a year earlier. Excluding stock-based compensation, the profit was
15.49 yuan an ADR, compared with 9.57 yuan a year earlier.
Net revenue more than doubled to 6.67 billion yuan ($1.05
billion).
Gross margin narrowed to 57.7% from 72.5% a year earlier as
costs of revenue surged.
Online games, which account for the bulk of the company's
revenue, saw a 43% jump in sales to 5.21 billion yuan ($820.2
million).
As of Sept. 30, NetEase had about 20.4 billion yuan ($3.2
billion) in cash, up from 21.2 billion as of Dec. 31.
Dollar conversions were based on the noon buying rates specified
by the Federal Reserve on Sept. 30.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 11, 2015 19:44 ET (00:44 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Activision Blizzard (NASDAQ:ATVI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Activision Blizzard (NASDAQ:ATVI)
Historical Stock Chart
From Apr 2023 to Apr 2024