In a statement by Dr. Dejian Liu, Chairman of NetDragon, the company highlighted its achievements in 2023, emphasizing a strong focus on execution and strategic investments to drive sustainable growth. Notably, NetDragon’s gaming business recorded a revenue of RMB 3.8 billion (approximately $525 million) for the year, marking a 9.6% increase year-over-year (YoY). This growth trajectory underscores NetDragon’s resilience and success in navigating challenges, particularly in the wake of the COVID-related macroeconomic slowdown experienced in the previous year.
NetDragon’s gaming revenue has consistently grown throughout the past decade, with 2022 being the only exception due to pandemic-related economic challenges. Dr. Liu attributed this success to the company’s commitment to delivering high-quality games and fostering player engagement through continuous innovation and investment in AI technologies.
NetDragon’s gaming revenue spans domestic and overseas markets, with a notable 10.5% and 4.5% YoY growth in these segments, respectively. The company’s flagship IP, Eudemons, experienced robust performance, with revenue reaching RMB 3.4 billion (approximately $470 million) and a 12.4% YoY increase. The success of Eudemons Online, particularly in the PC segment, was highlighted, showcasing a 14.0% YoY revenue growth driven by strategic initiatives to enhance gameplay experience and address player needs.
Additionally, NetDragon’s Heroes Evolved IP witnessed a turnaround in performance, recording a 5.8% revenue growth YoY. The company capitalized on the popularity of e-sports events to promote the Heroes Evolved brand and drive player acquisition. Furthermore, NetDragon expanded its Conquer IP, developing a new game (Code-Alpha) and establishing an ecosystem of online-to-offline competitions to enhance player engagement.
NetDragon’s application of generative AI also yielded significant results, with increased utilization for art production tasks and notable improvements in efficiency and content update frequency.
NetDragon aims to continue driving revenue and profit growth by optimizing existing game revenue and investing in a diverse pipeline of new games across various genres. Expansion into new geographical markets, including Japan, the Middle East, and Indonesia, is also part of the company’s growth strategy for 2024. Webcast of the full presentation is also available.
