NetEase results exceed expectations
(China Daily)
Updated: 2006-08-16 08:39 Top Chinese online games firm NetEase yesterday
reported "better than expected" second-quarter results, but gave a flat forecast
for its core online game business in this quarter.
Beijing-based NetEase said its revenue in the past quarter was US$72 million,
8.6 per cent up on the first quarter and a year-on-year rise of 38 per cent.
People stand
at the booth of NetEase at a recent online games fair in
Shanghai. Beijing-based NetEase said its revenue in the past quarter
was US$72 million, 8.6 per cent up on the first quarter and a year-on-year
rise of 38 per cent. [newsphoto] |
Meanwhile, the net profit of NASDAQ-listed NetEase reached US$39.3 million or
28 US cents per diluted American depository share, a year-on-year increase of 29
per cent.
"We experienced another quarter of solid revenue growth driven by sequential
growth in all business lines," said Ding Lei, CEO and controlling director of
NetEase.
A Shanghai-based Internet industry analyst, who wished to remain anonymous,
said that the results were "better" than his expectations.
According to a poll by US firm Thomson Financial, analysts expected NetEase's
earnings per share to be 27 US cents and its revenue to be US$68.5 million.
The online gaming business of NetEase, the biggest in China, grew almost 8
per cent quarter-on-quarter to US$60.80 million.
Its advertising business grew 11.7 per cent to US$8.6 million, while wireless
and other revenue also rose 16 per cent to US$2.6 million.
However, NetEase, whose profit margin on its game business rose 90.7 per cent
in the quarter due to its strong in-house game development capability, also saw
its research and development expenses rise 50 per cent quarter-on-quarter to
US$5.79 million.
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