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NetEase Announces Its Q3 Unaudited Financial Results, Highlighting Positive Gaming Segment Growth Across Different Platforms

By Isabella Jiangcheng
Nov. 18, 2021 updated 04:29

NetEase announced on Tuesday its third-quarter unaudited financial results for the year. According to the statement, NetEase’s net revenue was 22.2 billion CNY (~ 3.4 billion USD), an increase of 19% from 2020 Q3 and 8.3% from the previous month. Non-GAAP net profit attributable to equity was 3.9 billion CNY (~ 610 million USD). Online game service accounts for 15.9 billion CNY (~ 2.5 billion USD) net revenue, up 14.7% from last year. Net revenues from mobile games accounted for about 69% of the total net revenue from online game services.

In the NetEase earnings call, NetEase CFO Charles Yang explained that the year-over-year growth in games is primarily due to the newly launched titles on both PC and mobile. Existing titles such as Fantasy Westward Journey Online and Westward Journey Online II also demonstrate strong growth.

For PC games, Naraka: Bladepoint, the game that broke the sales records of buy-to-play games by Chinese developers and received an 80% positive review rate on Steam, along with Nightmare Breaker, a multiplayer action RPG, drove a 30% year-over-year growth for PC games revenue. For mobile games, Harry Potter: Magic Awakened led China’s iOS top grossing chart since its launch in September. Other newly launched games, such as the space-themed simulation game Infinite Lagrange and the race simulation ACE Master, perform well within each of their genres.

 NetEase also has its success in overseas markets. The Lord of the Rings: Rise to War had a strong debut at the end of the third quarter. NetEase also plans to introduce Harry Potter: Magic Awakened to overseas markets as early as the first half of 2022.

NetEase also shared their plans for exciting new titles, including dating simulator The Showbiz: Dream Chaser, the console version of Naraka: Bladepoint, Diablo® Immortal™, and the RPG mobile game Ghost World Chronicle.

Source:

https://finance.yahoo.com/news/netease-announces-third-quarter-2021-083000487.html

https://www.fool.com/earnings/call-transcripts/2021/11/16/netease-ntes-q3-2021-earnings-call-transcript/