China’s one of the largest internet and video game companies NetEase announced strong results for Q2 2022, its gaming division did particularly well, seeing an increase of 15% compared to the same period last year.
NetEase’s report, however, shows unaudited financial results for the quarter that ended June 30, so it should be viewed with caution. Per the report, only Youdao, NetEase’s very own search engine reported a decrease (26.1%) in revenue year-over-year, down to $142.8 million. NetEase’s games, cloud music, innovative businesses, and other departments did considerably well.
- NetEase reported $3.5 billion in net revenue, meaning the company saw an increase of 12.8% year-over-year.
- The gaming division of the Chinese giant saw an increase of 15% year-over-year, up to 2.7$ billion in net revenue.
- Cloud Music revenues saw a 29.5% increase in net revenue and went up to $327.2 million.
- Innovative businesses and other net revenues, meanwhile, increased by 6.1% and reached $279.4 million in revenue.
According to the financial statement, the Chinese goliath saw an increase of 15.7% increase in gross profit, reaching $1.9 billion year-over-year. Net income from continuing operations attributable to NetEase’s shareholders was reported as $807.7 million; income from continuing operations per share was $0.25.
Developed by NetEase and Activision Blizzard, Diablo Immortal made its debut both in the global market and later on in China, after facing several issues and delays. Diablo Immortal reached well over 30 million users in just two months and earned more than $100 million in the same period on mobile alone.
William Ding, CEO and Director of NetEase said:
“In the second quarter, we generated solid results with total net revenues of RMB23.2 billion, an increase of 12.8% year-over-year. Players continued to gravitate to our longstanding games in the second quarter, highlighting our strength in ‘game operations’ longevity.
“Moreover, the launch of Diablo Immortal attracted the attention of gamers around the world, showcasing our exceptional mobile game development capabilities.
“With our strong in-house R&D team in China and our very own studios in Canada, Japan, and the U.S., as well as plans for other regions in the future, we are spearheading the next generation of top-quality games for the global gaming community.”
Despite being denied new game licenses in China, NetEase posted strong numbers for this quarter. The company has been investing in Western game studios and even opening brand new studios like Jar of Sparks in the US, in order to create new revenue sources.
