BEIJING - Chinese internet and gaming giant NetEase, Inc. (NASDAQ:NTES) reported third-quarter earnings that beat analyst expectations, sending its shares up 3.5% in trading.
NetEase posted revenue of RMB26.21 billion ($3.7 billion) for the quarter ended September 30, below the consensus estimate of RMB26.69 billion. This also represents a 3.9% decrease compared to the same quarter last year.
The company's adjusted earnings per share came in at RMB11.63, falling short of analysts' expectations of RMB12.27.
The company's core games and related value-added services segment saw a 4.2% YoY decline in revenue to RMB20.9 billion ($3.0 billion). Despite this, NetEase highlighted the success of its new mobile game releases and the strong return of Blizzard titles in China.
"To further diversify our game portfolio across genres and expand globally, we launched a variety of new games to captivate players worldwide and achieved breakthrough milestones," said William Ding, CEO of NetEase. He added, "Throughout our development journey over the past two decades, players have remained at the core of our creations and operations, ensuring the long-lasting popularity of our games."
NetEase reported that World of Warcraft saw a 50% increase in daily active players compared to levels before its shutdown in China, while Hearthstone achieved over 150% growth following their relaunch in the country.
The company's education technology subsidiary, Youdao (NYSE:DAO), showed improved profitability, achieving its first-ever third-quarter operating profit. Meanwhile, NetEase Cloud Music continued to expand its subscriber base and maintain revenue growth in its online music services.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.