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NetEase profit grows by 15% to $4.53 billion for 2019

NetEase profit grows by 15% to $4.53 billion for 2019

Chinese tech firm NetEase has released its financials for its fourth quarter and fiscal year ended December 31, 2019.

The company posted net revenues of ¥15.73 billion ($2.26 billion) for Q4 2019, representing an increase of 9.2 per cent compared with the fourth quarter of 2018. Gross profit for the same quarter finished at ¥8.21 billion ($1.17 billion), increasing by nine per cent year-on-year.

Net revenue for the full fiscal year increased by approximately 14 per cent year-over-year, equalling to ¥59.24 billion ($8.5 billion) for 2019. Furthermore, profit for the fiscal year grew by an estimated 15 per cent to ¥31.5 billion ($4.53 billion).

NetEase's partnership with Blizzard continued to thrive and was highlighted in the financials. Specifically, the continued popularity of World of Warcraft in China and launch of World of Warcraft Classic both helped to achieve a record number of total monthly subscribers in the fourth quarter, as well as increased revenue quarter-over-quarter.

"Strong growth"

"We saw strong growth across our primary businesses, increasing our total annual net revenues and net income from continuing operations attributable to the Company’s shareholders year-over-year by 16 per cent and 60 per cent, respectively, due to strong performances in our online game services as well as other business segments," said NetEase CEO and director William Ding

"Our online game services net revenues continued to grow, propelled by the sustained and growing popularity of our existing titles, again demonstrating the longevity of our game franchises.

"At the end of the year, we launched the long-anticipated Fantasy Westward Journey 3D, which gave us a wonderful start to the first quarter. We will continue to bring more masterpieces to both domestic and global players in 2020"

The CEO concluded by commenting on the ongoing coronavirus issue stating that: "with respect to the COVID-19 outbreak, we currently expect to see some impact to our business lines in the near-term, however, the situation is evolving."

"NetEase is committed to providing support to affected communities and working together as we move through this challenging time."

NetEase's Tom and Jerry mobile game recently surpassed more than 100 million users in China. The game launched exclusively in China in May 2019.


Staff Writer

Matthew Forde is the staff writer for PocketGamer.biz and also a member of the Pocket Gamer Podcast. You can find him on Twitter @Forde999 talking about Smash Bros. and everything pop culture related - particularly superheroes.

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