NetEase Registers Net Revenue of $3.7B in Q1, Year-on-Year Increase of 14.8%

On Tuesday afternoon, Hangzhou-based internet tech firm and online gaming provider, NetEase, Inc., published its financial report for  Q1, 2022. Its net revenue totaled $3.7 billion, up 14.8% year-on-year.

Net revenue for online gaming services was $2.7 billion. The company is expecting to release Diablo Immortal, a title jointly developed by NetEase and Blizzard, in China on June 2 followed by a release in Southeast Asia on June 23. This game has already received over 35 million reservations worldwide, with more than 15 million from China.

NetEase is accelerating its global layout of game talents. In May, NetEase established its first game studio in the US, dedicated to the development of PC and console games. So far, it has set up studios in Japan, North America and other regions.

NetEase Cloud Music earned a net income of 2.1 billion yuan. By the end of March, 2022, it had over 450,000 original musicians and about 2 million original works published by these musicians. Driven by the growing revenue of member subscriptions and social entertainment services in addition to  the overall improvement of cost control, NetEase Cloud Music’s gross profit increased to 12%.

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Youdao, a learning tool under NetEase‘s control, had a net income of 1.2 billion yuan. Over the last three years, the number of patents applied by Youdao increased year by year with invention patents in particular accounting for nearly 60%. In April, Youdao launched an intelligent learning lamp for enriching the hardware of intelligent learning. In addition, it upgraded its AI game platform “Youdao Zongheng Chess Institute” App, and introduced new functions such as AI ultra-high-speed resumption and voice resumption.

NetEase Innovation and other businesses’ net income totaled 3 billion yuan. In Q1, the membership scale of NetEase Yanxuan Pro, a self-operated e-commerce platform, continued to improve, with a year-on-year increase of 65%. The number of videos played through the NetEase News app increased by 44% year-on-year, and the per capita viewing time increased by 83% year-on-year. The number of daily users of NetEase Open Class increased by over 20% year-on-year, and the number of authors of NetEase Knowledge Videos increased by 207%.