Netease (NASDAQ: NTES) released its Q2 financial report (by the end of Jun. 30th, 2015). Revenue stood at 4.833 billion yuan ($ 0.78 billion), up 63.7% from 2.952 billion yuan in the same period last year, while net profit rose by 18.5% to 1.424 billion yuan ($ 0.23 billion). Both Q2 revenue and profit set new records compared to Q1 revenue ($ 0.621 billion) and profit ($ 0.204 billion).Netease’s online games enjoyed rapid growth in Q2. In the first half year, Netease has launched key games such as Fantasy Westward Journey and Tom & Jerry. For the second, the firm will introduce new games for the iPhone, iPad, iPod touch and Android including KungFu Panda and Chrono Blade. In particular, Fantasy Westward Journey on iOS and Android has reached 30 million active users by August 2015, and ranked Top-10 best selling Apps in the world according to App Annie for three months according it’s downloads and revenue. Self-developed franchise Tom & Jerry has gained more than 10 million users since June 1st, in China, and reached the number 1 chart position in the App Store free games list. Licensed online games from Blizzard Entertainment–Diablo III, Hearth stone: Heroes of Warcraft and Heroes of the Storm, also made a great contribution to Q2 revenue growth. In the competitive gaming market, Netease’s performance continues to stands out.
Some noteworthy aspects in the Netease’s Q2 2015 earnings report include promises of great growth potential, as indicated by the continued growth of its brand and successful expansion into mobile. Secondly, the gaming giant strikes a balance between quantity and quality. In the next year, more than 30 mobile games will be brought to China and the company will continue to explore international markets for further growth potential.
NetEase Games was established in 2001 and has been consistently ranked in the leading position for online games independent research and development in China. NetEase had over 10,000 employees, with offices in Beijing, Shanghai, Hangzhou, Guangzhou, San Francisco (USA) and Seoul (Korea). NetEase gaming revenue in 2014 reached 9.815 billion yuan ($ 1.582 billion), taking up 78.6% of NetEase revenue. The year-on-year growth of 35.7% outmatched many other firms in the industry.
Building further on their success in China, NetEase Games works closely with some of the largest Western game companies. Since 2008, NetEase has obtained the exclusive operational rights of Starcraft II, Warcraft III: Reign of Chaos, Warcraft III: Frozen Throne, World of Warcraft, Hearthstone: Heroes of Warcraft as well as their online battle platform of Mainland China from Blizzard Entertainment. NetEase also obtained the exclusive operational rights of highly popular mobile game Dark Blade and World Sturgeon Conservation Society.
