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:

“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.