NetEase sees 2013 sales up 17% to $1.6 billion

Looking to take on Tencent with its YiChat platform

NetEase sees 2013 sales up 17% to $1.6 billion

Chinese internet company NetEase (NASDAQ:NTES) has announced its unaudited FY13 financial results for the 12 months ending 31 December 2013.

Total revenues were $1.6 billion, up 17 percent year-on-year.

Net profit was $734 million, up 22 percent.

Big hitters

The vast majority of NetEase's sales come from online games such as Fantasy Westward Journey, Westward Journey Online II and Ghost.

It's also launching Blizzard's Hearthstone: Heroes of Warcraft in China.

However, it's increasingly getting into the mobile and social gaming markets too.

For example, there's a mobile version of Fantasy Westward Journey II.

We (can also) Chat on YiChat

"We are augmenting the success of our online games with our mobile initiatives, offering players a new medium through which to enjoy NetEase's games," explained CEO William Ding.

"We have already released three mobile games, and in 2014 we plan
to launch a number of new mobile games, including mobile versions of our existing online games, to further enrich our portfolio."

NetEase is also involved in mobile apps, with over 200 million downloads of its mobile news application while its YiChat messaging platform - jointly operated with China Telecom and now with email, gaming and payment integration - has 620 million registered users.

Whether it can compete with Tencent's similar WeChat platform in China will be one of the stories of 2014. 

NetEase ended the year with cash and deposits worth $3.1 billion.

[source: NetEase IR]

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