NetEase Q1 Profit Rises - Update

(RTTNews) - Chinese online games giant NetEase Inc (NTES), Wednesday reported an increase in first quarter profit, as revenue surged reflecting news games and increased users.

Beijing, China-based NetEase's first-quarter profit rose to 1.3 billion yuan or 9.60 yuan per ADS from 1.1 billion yuan or 8.60 yuan per ADS last year. On an US dollar basis, earnings were $1.55 per ADS compared to $1.39 last year.

Adjusted earnings were 10.81 yuan per ADS, compared to 9.04 yuan per ADS a year ago. On a US dollar basis, adjusted earnings were $1.74 per ADS.

On average, analysts polled by Thomson Reuters estimated earnings of 8.69 yuan per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter surged to 3.66 billion yuan from 2.37 billion yuan last year. On a US dollar basis, revenues were $590.5 million. Analysts had a consensus revenue estimate of 3.20 billion yuan for the quarter.

Revenue from online games rose 44 percent to 3.10 billion yuan, while advertising revenue rose to 332.6 million yuan from 244.7 million yuan last year. Revenue from email, e-commerce and other services segment increased to 448.4 million yuan from 118.6 million yuan last year.

"The introduction of new games and content for our community of online PC-client and mobile users drove growth across our business during the first quarter of 2015," said Chief Executive William Ding.

NetEase approved a dividend of $0.39 per ADS for the first quarter, to be paid on June 5 to shareholders as of May 27.

NTES closed Wednesday's trading at $130.00, up $2.25 or 1.76%, on the Nasdaq. The stock further gained $6.00 or 4.62% in the after-hours trade.