NetEase Revenues Rise On Strong Online Game Performance

Beijing, China-based online game operator NetEase has reported a rise in profits and revenues in fiscal Q1 thanks to strong performance of games such as Fantasy Westward Journey. NetEase CEO William Ding said in a statement, “Our online game business continued to perform well during the first quarter as a result of the longevity of our game lifecycles, strong user loyalty among our gamers and robust online communities.” The company reported revenues of RMB781.7 million (US$114.4 million) for the quarter ended March 31, up 20 percent year-on-year from RMB651.9 million (US$95.4 million). Ding said Fantasy Westward Journey has been able to maintain a “steady user base,” and the company will be launching promotional activities during the summer to attract more gamers. Net profit was RMB416.7 million (US$61.0 million), up from RMB269.4 million (US$39.4 million) a year ago. NetEase recently landed a major deal with Blizzard, which will grants the Chinese game operator the rights to host World of Warcraft in China beginning in June. NetEase edged competitor and current WoW China operator The9 out of the deal. Ding said, “Adding to our existing licensing agreements for other Blizzard Entertainment games like Warcraft III and StarCraft II and the Battle.net platform, this new licensing achievement positions NetEase with the most popular MMORPG worldwide in addition to our outstanding portfolio of market leading in-house developed games.”