NetEase.com posts higher 3Q profit
Chinese online game service provider NetEase.com Inc. said Wednesday its profit jumped in the third quarter, as sales of the Fantasy Westward Journey and World of Warcraft online games helped lift revenue.
The company reported net income of 585.3 million yuan ($87.5 million), or 67 cents per American depositary share, for the three months ended Sept. 30. That compares with net income of 393.8 million yuan, or 45 cents per ADS, a year earlier.
The latest results included a net foreign exchange gain of $8.1 million.
Revenue grew to $1.44 billion yuan ($215.1 million) from $879.4 million in the prior-year quarter.
Analysts polled by Thomson Reuters had expected, on average, a profit of 63 cents per American Depositary Share on revenue of $204.9 million.
NetEase's online gaming business alone totaled $187.7 million of total revenue.
CEO William Ding credited the revenue increase on strong demand for Activision Blizzard Inc.'s World of Warcraft, Heroes of Tang Dynasty, Tianxia II and Fantasy Westward Journey, which continues to rank as one of the most popular massively multiplayer-online games in China.
He said the company expects the next expansion pack for Fantasy Westward Journey will be released in the first quarter next year.
U.S.-traded shares of NetEase rose $1.43, or 3.5 percent, to $42.35in aftermarket trading on Wednesday. The stock added $1.32, or 3.3 percent, to $40.92 during the regular session.