Chinese internet company NetEase reported earnings today. NetEase did surprisingly well, considering its industry is being attacked by the Chinese government’s new restrictions.
The company posted an EPS of ¥6.24, a 2.21% surprise. NetEase slightly missed on revenue, reporting ¥20.5 billion (USD$3.2 billion). The company’s revenue was up 12.9% YoY. 👏
The majority of NetEase’s business comes from online game services. Gaming in China has been under attack and the country recently imposed playing time restrictions on minors. However, in the latest quarter, NetEase managed to pull ¥14.5 billion (USD$2.3 billion) in income from their gaming biz. That’s +5.1% YoY.
The remainder of the company’s revenue came from its Youdao and innovative businesses/others segment. Youdao is a search engine, which serves advertisements like Google. NetEase’s innovative business segment includes NetEase Cloud Music, among others.
It’s unknown if NetEase, one of China’s bigger tech companies (dare we say Big Tech), will be affected by ongoing restrictions and changes in China’s government. In the meantime, though, investors are somewhat satisfied.
$NTES rose 8.7% today.