NetEase has released its financials for the full year of its FY17 ending December 31st 2017.

The company posted revenues of $8.3 billion for the year, up 41.6% year-on-year. However, profits fell by 7.8% year-on-year to $1.6 billion, largely due to increased operating expenses from marketing and R&D.

Revenues for NetEase's online games came to $5.6 billion for the year, up 29.6% year-on-year. Mobile games accounted for 70.8% of these revenues, up from 61.9% in 2016.

Royale rumble

Knives Out and Rules of Survival were the biggest mobile successes, accumulating 100 million and 80 million downloads respectively. Both games initially launched without monetisation, though they do appear to now have IAPs.

Onymyoji experienced a decline, but NetEase is hoping to reinvigorate interest with new content. The game was released globally in January 2018, and a new MOBA based on the IP has also been launched.

NetEase recently signed a deal with UK tech firm Improbable to use its SpatialOS technology to develop games on the platform. Improbable expects that the deal will lead to it opening a new office in China and expanding its business into the potentially lucrative market.