NetDragon has published its interim report, showcasing a 26.3 per cent increase in revenue to $602.1 billion.
“We continued to make significant progress across our business in the first half of 2022 as our revenue increased by 26.3% YoY to RMB4.2 billion and net profit attributable to owners of the Company increased by 31.2% YoY to RMB565.1 million. Our achievement is made possible by solid commercial execution, as well as years of investment in our product R&D, global sales network, and most importantly our people to maintain our overall operational competencies at the highest level,” said NetDragon chairman Dr. Dejian Liu.
The company’s educational business showed to be particularly strong, with a 71.2 per cent year-on-year increase to $344.5 million, which represents 56.8 per cent of the total revenue for the period.
Gaming represented 41.9 per cent of the company’s revenue for the year, with the company’s gaming catalogue earning $258.3 billion. This represents a slight decrease of 3.9 per cent year-on-year, continuing the trend of declining revenue for mobile gaming, as the market normalises following the easing of lockdown restrictions. Although China recently experienced a resurgence of cases, it doesn’t appear that it was enough to buck the trend.
Eudemons remains strong
The company’s flagship title, Eudemons, saw revenue decrease 0.6 per cent half-on-half and 3.8 per cent year-on-year. During H1 2022 the company released four expansions for the title and conducted numerous events to drive engagement. The result was an increase in both monthly average users (MAU) and average paying accounts (APA.) The PC version of the game performed particularly well, with a 34 per cent year-on-year increase in MAU and a 65 per cent increase in APA over the same period. Eudemons Pocket Version also proved resilient, with a 7.8 per cent increase in revenue year-on-year.
The second half of the year will see the company releasing Eudemons Mobile 2 and Neopets Faerie’s hopes, and the company is no doubt hoping they can make strong gains in the games space as they navigate both the post-covid environment and the unique gaming environment in the Asian country.
Yesterday, we reported that ByteDance is downsizing its gaming division, in part due to the macroeconomic climate in China.
