NetEase sees overall growth in Q3
Shanghai. November 18. INTERFAX-CHINA - Revenue for China's leading online game provider NetEase.com, Inc. rose 66.9 percent year-on-year to $215.05 million in the third quarter (Q3), according to unaudited financial results released on Nov. 17.
Online gaming accounted for $187.71 million or 87.3 percent of NetEase's total revenue between July and September while its advertising service business generated $24.21 million. The results were up 65.3 percent and 92.1 percent year-on-year respectively.
Net profit in Q3 was $87.5 million, an annual increase of 48.5 percent.
NetEase CEO Ding Lei attributed the growth in revenue largely to increased popularity in its home-grown massively-multiplayer online role-playing game (MMORPG) Fantasy Westward Journey and the licensed MMORPG World of Warcraft. Strong performances from advertising services, and large-scale sales promotional and branding events were also contributors, he said.
According to Ding, NetEase had also targeted a 40 percent increase in portal traffic year-to-date, which bolstered the advertising business.
NetEase's share price gained 5.08 percent to hit $43 per share in after-hours trading after the release of the Q3 results.