NetEase has released its financial report for the second quarter of 2023 ended June 30. The Chinese tech giant posted revenue and profit growth thanks to the steady performance of its gaming business.
- According to its latest earnings release, NetEase reached $3.3 billion in revenue in Q2, up 3.7% year-over-year.
- Gross profit was $2 billion, up 11.1% year-over-year, and net income was $1.1 billion.
- Most of NetEase’s quarterly revenue came from its gaming division, which generated $2.6 billion, up 3.6% compared to the same period last year.
- Operation of online games accounted for 91.7% of the segment’s net revenue for the second quarter, and 73.6% of online titles’ revenue came from mobile.
- NetEase CEO William Ding cited strong performance of the Fantasy Westward Journey series among the main revenue drivers. He also noted that the company is expanding into the casual segment with games like Eggy Party.
- “We believe that each addition to our game portfolio validates our exceptional R&D capabilities and the broad influence our ingenuity has in the marketplace, including expanding the casual game market and altering the face of traditional MMOs,” Ding said.
- On top of that, NetEase had several successful launches in Q2. Justice Mobile, a spin-off to popular MMO title Justice Online, became a commercial hit and gained additional attention due to its use of AI and deep learning technologies.
- Other top-grossing new releases were Racing Master and Badlanders. NetEase didn’t disclose revenue of these games.
- According to AppMagic, Justice Mobile generated $6.8 million from in-app purchases in the first seven days since its launch, while Racing Master reached $2.4 million in its debut week.
- Harry Potter: Magic Awakened, which was launched globally in June, became another revenue driver for NetEase. It reached around $2.33 million in IAP revenue and generated over 3.7 million downloads in its first week.