NetDragon Announces 2022 annual financial results

Post-Covid metrics are better than expected.
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NetDragon, a Chinese company that develops and operates massively multiplayer online games, announced its financial results for the fiscal year 2022. The company saw an 11.8% increase in revenue year-over-year, and 43.6% of the total revenue came from gaming.

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Revenue of the gaming segment decreased by 5.8% compared to last year. Still, numbers show that NetDragon’s games outperformed most of its competitors, leading to an increase in total revenue—the company’s overseas games revenue growth of 6.5%.

Dr. Dejian Liu, Chairman of NetDragon, said, “The gaming industry in China went through unprecedented challenges throughout 2022 due to a slowdown of the domestic economy due to the Covid-19 impact. However, a clearly defined go-to-market strategy and our unique gaming IP portfolio helped us to weather the storm.”

Mobile gaming revenue remained steady at $84 million, representing a modest decrease of 0.2% year-over-year, outperforming a domestic mobile game market decline of 14.4% year-over-year in 2022.

Meanwhile, PC gaming revenue was RMB2.8 billion, representing a 6.9% YoY decrease as we saw a short-term impact from the Covid-related economic slowdown on the spending of core players during the year in the domestic market.

NetDragon’s 2023 plan is to significantly expand the pipeline of new games in conjunction with driving revenue growth for existing games. A total of five new games under the Eudemons IP are to be launched in 2023 and 2024, the first of which is Eudemons Mobile II, which was successfully launched in March 2023.

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