Net revenue

NetEase Sees Net Revenue Increase 12.8% YoY | Pocket

Chinese tech giant NetEase released its financial statements for the second quarter of 2022, showing net revenue of $3.5 billion, an increase of 12.8% compared to the same period in 2021.

Games and related services proved particularly successful for the company, with net revenue for the sector increasing 15% year-on-year to $2.7 billion.

Cloud Music also saw a 29.5% year-on-year increase in revenue to $327.2 million, while innovative businesses and other net revenue grew 6.1% over the same period, reaching £279.4 million in total.

However, revenue from search engine Youdao fell 26.1% during the year, with the latest figure being $142.8 million.

Gross profit for the quarter rose 15.7% year-over-year to $1.9 billion. Total operating expenses also rose 7.6% to $1.2 billion.

Cutting trends

Although many companies in the mobile gaming industry have gone through a period of decline, it seems that NetEase has managed to break this trend. Much of the decline can be attributed to the easing of lockdown restrictions, which previously sparked a boom for the sector.

NetEase’s success can be attributed to the continued success of titles such as Fantasy Westward Journey and Identity V, as well as the massive success of Diablo Immortal, which was released in June. The game topped the download charts in several countries and earned $49 million in its first month of release.

“In the second quarter, we delivered strong results with total net revenue of RMB 23.2 billion, an increase of 12.8% year-on-year,” said CEO and Director of NetEase. , William Ding. “Gamers continued to turn to our long-running games in the second quarter, highlighting our strength in the longevity of gaming operations. Additionally, the launch of Diablo Immortal captured the attention of gamers around the world, highlighting value our outstanding mobile game development capabilities.

“With our strong in-house R&D team in China and our own studios in Canada, Japan and the United States, as well as plans for other regions in the future, we are spearheading the next generation of premium quality games for the global gaming community.”

Last year, we ranked NetEase 10th in our list of top 50 mobile game makers. We will unveil our roster for 2022 later this month.