This week, NetEase, Inc. (NASDAQ: NTES), a leading internet and online game services providers in China, announced its financial results for the second quarter, with both earnings and revenue beating estimates. Shares of the company decreased around 3% after the announcement.
According to the company, net revenues increased 49.4% to RMB13.4 billion (US$2.0 billion) for the second quarter, beating estimates of $1.9 billion. The company reported adjusted earnings per American depository share of $3.86, also beating previous estimates of $3.82 per share.
“Our total net revenues grew nearly 50% in the second quarter compared with last year as we continued to invest in new content development that broadens our offering and engages our community across our business lines,” Mr. William Ding, the Chief Executive Officer and Director of NetEase, said in the statement this week.
“Additional penetration in China's mobile market, as well as overseas markets, offers considerable room for NetEase's ever-increasing portfolio, particularly as we introduce new gameplay options and genres that diversify and strengthen our offering. We have an exciting pipeline of upcoming games, including the highly anticipated sandbox game Minecraft, as well as Index and Forever 7, two stunning Japanese-themed RPGs,” he said.