NetEase Q2 Profit Rises

(RTTNews) - Chinese online games provider NetEase Inc. (NTES), Wednesday reported an increase in profit for the second quarter, driven mainly by growth in gaming revenues. Following the news, shares of NetEase rose seven percent in extended trade.

Beijing, China-based NetEase's second-quarter profit improved to 1.1 billion renminbi or $178.4 million, compared to 875.3 million renminbi last year. On a per ADS basis, earnings rose to $1.37 from $1.08 last year.

On average, seven analysts polled by Thomson Reuters expected earnings of $1.25 per ADS for the quarter. Analysts' estimates typically exclude special items.

NetEase said its total revenues for the second quarter grew 20.4 percent to 2.4 billion renminbi from 2.0 billion renminbi in the same quarter last year. On a U.S dollar basis, revenues for the quarter were $393.3 million. Eight analysts had a consensus revenue estimate of $363.48 million for the quarter.

Revenues from online games were 2.1 billion renminbi or $336.7 million, compared to 1.7 billion renminbi last year. Advertising revenues grew 33.3 percent to 272.2 million renminbi year-over-year.

For the second quarter, online games revenues increased 18.2 percent year-over-year, helped by the company's self-developed games, like popular Fantasy Westward Journey, Kung Fu Master, Ghost II and Westward Journey Online III.

"We are actively growing our community of loyal users by expanding our portfolio of Internet games, products and services for traditional online and mobile users," said Chief Executive William Ding said, "Our strong second quarter results were led once again by our self-developed online games and advertising services."

NTES closed Wednesday at $61.45, up $0.56 or 0.92%, on the Nasdaq. In after hours, the stock gained $4.55 or 7.40% in after hours trade.