NetEase (NTES) Reports Q1 EPS of $1.74

NetEase (NASDAQ: NTES) reported Q1 EPS of $1.74, versus $1.71 reported last year. Revenue for the quarter came in at $626.75 million.

"The introduction of new games and content for our community of online PC-client and mobile users drove growth across our business during the first quarter of 2015," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Compared with the same period last year, revenues from our online games business were up 44.0%."

"Mobile games have become a major driving force in China's online game industry, and we believe the high quality and diversity of our mobile offerings are resonating with users. In the first quarter, a growing number of users were particularly captivated by our self-developed mobile games, such as Battle to the West and The World HD, which were launched in the prior quarter. Moreover, our flagship game, Fantasy Westward Journey, continued to gain in popularity, with the mobile version of this game reaching No. 1 in the iOS China app store, and setting a record peak concurrent user count of 1.6 million after its introduction in late March."

"Our online PC-client games also continued to be well received in the first quarter as we introduced new games and content. During the first quarter, users welcomed beta tests for Hegemon-King of Western Chu, our 3D warfare MMORPG. We also saw solid performances from Fantasy Westward Journey II and New Westward Journey Online II."

"Our exciting pipeline planned for 2015 includes a number of new online PC-client and mobile games, as well as new content for our existing games. In April, we commercially launched Demon Seals, a 2.5D MMORPG, as well as expansion packs for New Westward Journey Online II and Ghost II. In addition, we are pleased with the positive feedback from the closed beta testing of Revelation, our 3D oriental fantasy MMORPG, which began in January, and we will launch its open beta testing in the near future. We also continue to work closely with Blizzard Entertainment and have been delighted by the success of the open beta testing for the Chinese version of Diablo III®: Reaper of Souls™. That game sold over one million copies within 10 days of its launch in late April, setting the record for the fastest-selling PC game in China. We plan to begin open beta testing for Blizzard's Heroes of the Storm™ in late May. For mobile games, we now offer over 20 mobile games of various genres, and we plan to deploy more new self-developed and licensed mobile titles in the coming months to build on our positive momentum. Later this year, we will also expand our global footprint with local partners to launch our games in other countries in Asia and North America."

"Turning to our advertising services business, this segment remains strong benefiting from the continued growth of our Mobile News Application and a growing online advertising market in China, with revenue from this segment increasing by 35.9% compared with the same period last year. Automobile, Internet services and food and beverage were the top performing advertising verticals in the first quarter. E-commerce is another area where we see significant growth opportunity. While still in the early stages of operation, our self-operated cross border e-commerce platform, Kaola, has performed well, and we are actively expanding our range of product offerings."

"Mobile games and content continue to be in high demand, further complementing our online PC-client games and services. While we expect to see continued momentum from the mobile market, our strategy will remain focused on diversity, excellence and international expansion to achieve healthy growth across all of our Internet businesses," Mr. Ding concluded.

For earnings history and earnings-related data on NetEase (NTES) click here.

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