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NetEase posts Q2 growth in gaming, e-commerce but lower advertising revenue

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Geekz Snow
NetEase posts Q2 growth in gaming, e-commerce but lower advertising revenue

NetEase recorded steady growth in the second quarter of 2019 with gains of more than 10% in net revenue and gross profit, driven primarily by the company’s online gaming and e-commerce businesses.

Why it matters: Since China has eased up on restricting new game approvals, NetEase has pushed to diversify its portfolio of titles.

It has launched several mobile games and expedited the development of upcoming titles, including the country’s first official Pokémon mobile game.

Details: NetEase’s net revenue rose 15.3% year on year to $2.7 billion, of which more than 60% came from online game services, which itself grew 13.6%.

Income from mobile games accounted for nearly three-quarters of the company’s total gaming turnover for the period.

Net revenue from e-commerce grew by one-fifth to reach $764.3 million.

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Geekz Snow
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