NetEase has released its financial results for Q2 2020 for the period ending June 30th 2020.
The Chinese firm registered net profits of ¥18.2 billion ($2.6 billion), an increase of 25.9 per cent year-on-year. At a rise of 26 per cent year-over-year, gross profit hit ¥9.8 billion ($1.4 billion).
Revenue generated by online games hit ¥13.8 billion ($1.9 billion), a growth of 20.9 per cent year-on-year. Furthermore, mobile titles made up 72.3 per cent, a rise from the 70.3 per cent and 72.2 per cent for Q1 2020 and Q2 2019 respectively.
More specifically, games such as Invincible, Life-After, and Knives Out have been credited as the reason for mobile’s growth quarter-over-quarter. Meanwhile, other smartphone titles like Fantasy Westward, Journey 3D, Invincible, and Fantasy Westward Journey helped grow the divisions year-on-year.
“We saw healthy gains across our business in the second quarter, with total net revenues of ¥18.2 billion, up 25.9% year-over-year, driven by strong performances from our online game services and NetEase Cloud Music,” saidNetEase CEO and director William Ding.
“Our games portfolio holds considerable depth and diversity, supporting our online game services net revenues of ¥13.8 billion in the second quarter. We saw steady growth in our overseas revenue in the second quarter. With the continuous expansion of our abundant games pipeline,we are more confident and committed than ever to extending our reach to a broader market. Our other core businesses such as Youdao, NetEase Cloud Music And Yan Xuan, among others,also continue to track well against our strategic goals.”
No doubt the Chinese firm will hope to carry on its success in Q3, as it has recently soft-launched The Lord of the Ring: Rise to War.