Netease total revenues for the third quarter of 2014 were RMB3,325.9 million (US$541.9 million), compared to RMB2,951.9 million and RMB2,514.3 million for the preceding quarter and the third quarter of 2013, respectively.
Its net profit for the third quarter of 2014 totaled RMB1.2 billion (US$188.8 million), compared to RMB1.2 billion and RMB1.0 billion for the preceding quarter and for the third quarter of 2013, respectively.
Revenues from online games were RMB2,459.6 million (US$400.7 million) for the third quarter of 2014, compared to RMB2,336.5 million and RMB2,105.5 million for the preceding quarter and the third quarter of 2013, respectively.
Revenues from advertising services were RMB478.3 million (US$77.9 million) for the third quarter of 2014, compared to RMB389.1 million and RMB298.8 million for the preceding quarter and the third quarter of 2013, respectively.
Revenues from e-mail, e-commerce and others were RMB388.0 million (US$63.2 million) for the third quarter of 2014, compared to RMB226.3 million and RMB110.1 million for the preceding quarter and the third quarter of 2013 (252.5%), respectively.
Netease YiChat (Yixin) provides a platform for integrating their mobile applications and services. With a focus on our ‘Fresh Social Life’ strategy, the introduction of exciting new functions has supported their growing YiChat user base and increased activity levels.
Our third quarter revenues were driven in part by the success of a number of our self-developed games, and our strategy to increase our focus on mobile games is progressing well. We saw standout performances from games including the PC and mobile versions of Fantasy Westward Journey II, as well as our mobile card battle game, Mini Westward Journey. New Westward Journey Online II also delivered a strong performance following the launch of an expansion pack in July and an item-based version in August. For our licensed games,Blizzard Entertainment’s Hearthstone®: Heroes of Warcraft™ (‘Hearthstone’) performed well, and we rolled out Curse of Naxxramas™, Blizzard’s first solo adventure for this game, in July. We continue to work closely with Blizzard to bring exciting new games to Chinese audiences, and an early test version of Blizzard’s free-to-play, online team brawler Heroes of the Storm™, was launched in China in October. We are also looking forward to the Chinese launch of the fifth expansion for Blizzard’s World of Warcraft®, Warlords of Draenor™, on November 18, 2014
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Quarter Ended |
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| September 30, | June 30, | September 30, | September 30, | |||||
| 2013 | 2014 | 2014 | 2014 | |||||
| RMB | RMB | RMB | USD (Note 1) | |||||
| Revenues: | ||||||||
| Online game services | 2,105,451 | 2,336,498 | 2,459,596 | 400,716 | ||||
| Advertising services | 298,783 | 389,102 | 478,330 | 77,929 | ||||
| E-mail, e-commerce and others | 110,080 | 226,348 | 387,987 | 63,211 | ||||
| Total revenues | 2,514,314 | 2,951,948 | 3,325,913 | 541,856 | ||||
| Sales taxes | (157,675) | (184,358) | (209,174) | (34,079) | ||||
| Total net revenues | 2,356,639 | 2,767,590 | 3,116,739 | 507,777 | ||||
| Total cost of revenues | (609,884) | (767,905) | (858,298) | (139,833) | ||||
| Gross profit | 1,746,755 | 1,999,685 | 2,258,441 | 367,944 | ||||
| Selling and marketing expenses | (283,026) | (433,494) | (533,838) | (86,973) | ||||
| General and administrative expenses | (94,795) | (98,054) | (128,928) | (21,005) | ||||
| Research and development expenses | (257,345) | (292,108) | (396,442) | (64,588) | ||||
| Total operating expenses | (635,166) | (823,656) | (1,059,208) | (172,566) | ||||
| Operating profit | 1,111,589 | 1,176,029 | 1,199,233 | 195,378 | ||||
| Other income: | ||||||||
| Investment income | 9,041 | 10,482 | 8,693 | 1,416 | ||||
| Interest income | 123,567 | 146,456 | 156,084 | 25,429 | ||||
| Exchange gains/ (losses) | 5,900 | (20,181) | 2,184 | 356 | ||||
| Other, net | 1,025 | 6,783 | 1,872 | 305 | ||||
| Net income before tax | 1,251,122 | 1,319,569 | 1,368,066 | 222,884 | ||||
| Income tax | (206,503) | (97,936) | (197,340) | (32,150) | ||||
| Net income after tax | 1,044,619 | 1,221,633 | 1,170,726 | 190,734 | ||||
| Net loss/ (income) attributable to noncontrolling interests |
3,675 | (19,284) | (11,581) | (1,887) | ||||
| Net income attributable to the Company’s shareholders |
1,048,294 | 1,202,349 | 1,159,145 | 188,847 | ||||
| Comprehensive income | 1,044,619 | 1,221,633 | 1,170,726 | 190,734 | ||||
| Comprehensive loss/ (income) attributable to noncontrolling interests |
3,675 | (19,284) | (11,581) | (1,887) | ||||
| Comprehensive income attributable to the Company’s shareholders |
1,048,294 | 1,202,349 | 1,159,145 | 188,847 | ||||
| Earnings per share, basic | 0.32 | 0.37 | 0.35 | 0.06 | ||||
| Earnings per ADS, basic | 8.06 | 9.20 | 8.87 | 1.45 | ||||
| Earnings per share, diluted | 0.32 | 0.37 | 0.35 | 0.06 | ||||
| Earnings per ADS, diluted | 8.04 | 9.18 | 8.83 | 1.44 | ||||
| Weighted average number of ordinary shares outstanding, basic |
3,250,078 | 3,266,483 | 3,267,786 | 3,267,786 | ||||
| Weighted average number of ADS outstanding, basic |
130,003 | 130,659 | 130,711 | 130,711 | ||||
| Weighted average number of ordinary shares outstanding, diluted |
3,260,350 | 3,274,167 | 3,280,435 | 3,280,435 | ||||
| Weighted average number of ADS outstanding, diluted |
130,414 | 130,967 | 131,217 | 131,217 | ||||
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