NetEase said it would cooperate more extensively with Microsoft Games.
On May 23, Netease Group (Nasdaq: NTES, 09999. HK) released its financial report for the first quarter of this year. The total revenue in the first quarter of this year was 26.852 billion yuan, compared with 25.046 billion yuan in the same period last year, up 7.21% year on year; The net profit in the first quarter was 7.802 billion yuan, up 16.27% year on year.
The total revenue of games and related value-added services was 21.5 billion yuan, up 7% year on year; Net profit increased year on year, mainly due to the increase in net income of mobile games, such as Egg Boy Party and several new online games, according to the financial report. NetEase said that the company will update the distribution agreement with Blizzard Entertainment, bring the games beloved by players back to the Chinese market, and will also carry out broader cooperation with Microsoft Games.
Youdao's total revenue was 1.4 billion yuan, up 19.7% year on year; Gross profit declined month on month, mainly due to the decline in revenue contribution of learning services and intelligent hardware; Gross profit increased year on year, mainly due to the increase in revenue contribution of its online marketing services.
The total revenue of cloud music was 2 billion yuan, up 3.6% year on year; Gross profit increased month on month and year on year, mainly due to one-time adjustment of some copyright fees, increase in subscription revenue of members and continuous improvement of cost control; The total revenue of innovation and other businesses was 2 billion yuan, up 6.1% year on year; Gross profit declined month on month, mainly due to seasonal factors. The net income of strictly selected e-commerce and advertising business declined.
In the conference call after the financial report, regarding the progress of the full platform release of the game "Yanyun Sixteen Voices", NetEase CEO Ding Lei said that the PC side of "Yanyun Sixteen Voices" was ready for public testing, and the resources and content of the mobile game side had been reserved. Performance optimization and testing were under way, and it was expected to be launched later than the PC side. Previously, the "Yanyun Sixteen Voices" has announced that the national service is scheduled to take the lead in the public beta on July 26. In addition, the overseas issuance of this product has also been prepared.
The management of NetEase said: "After many tests, we have felt that players have great expectations for this game, and the R&D team has also verified the innovative operation and playability of mobile games, and their confidence has been further enhanced." At the same time, he revealed that currently, the mobile game "Forever" is undergoing final optimization before going online, and the expected online time is summer vacation. According to the data, the mobile game "Forever" added 10 million new bookings in the first two weeks of the test. After the test, the number of online bookings exceeded 25 million, and its popularity and reputation rose rapidly.
In response to investors' concerns about many new shooting products at the launch of NetEase game 520, Ding Lei said: "Shooting games are one of the most important categories in the game industry, and are popular with overseas users. NetEase attaches great importance to this track." Ding Lei said that these adjustments were made based on the long-term operation strategy of the product, which is expected to be completed in the first half of this year, The goal is to meet the needs of players and make this game more popular.
As of the closing on May 23, NetEase US shares closed at $94.74, down 3.68%; Netease Hong Kong shares closed at HK $141.5, down 7.88%.
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