Gaming giant NetEase Inc. (9999.HK; NTES.US) on Wednesday reported its revenue rose 3% year-on-year to 27.5 billion yuan ($3.98 billion) in the fourth quarter. But its quarterly profit fell 29.5% to 6.2 billion yuan.
Revenue from games and related value-added services during the quarter increased 3.4% year-over-year to 22 billion yuan. Revenue from its separately listed Youdao (DAO.US) education arm rose by a faster 16.8% year-on-year to 1.6 billion yuan, while its NetEase Cloud Music climbed 4.7% to 2 billion yuan. But its innovative businesses division fell 13% to 2 billion yuan from 2.3 billion yuan a year earlier.
For the full year, the company’s revenue grew 7% year-over-year to 112.6 billion yuan, while its net profit rose 13.8% to 33.8 billion yuan.
“Looking ahead, we remain focused on fostering a creative talent ecosystem, deepening collaboration with partners worldwide and thoughtfully advancing our AI-application capabilities,” said CEO William Ding. “We aim to further extend the longevity of our franchises while continuing to deliver innovative experiences to create even greater value for our global players and shareholders alike.”
Shares of NetEase fell 4% to $118.50 in U.S. trading on Wednesday. The stock opened down on Thursday in Hong Kong and was about 3.9% lower at the midday break.
By Lau Chi Hang
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