NetEase sees 33% profit jump for fourth quarter
Hangzhou-headquartered online gaming operator and Internet portal NetEase said profit jumped 33 percent to 1.697 billion yuan (US$246.9 million) in the fourth quarter of 2018 with strong online gaming income.
Revenue advanced 35.8 percent in the three months ended December last year to 19.84 billion yuan thanks to new mobile gaming launches and expansion to global markets.
Net revenue from its e-commerce operations surged 43.5 percent to 6.68 billion yuan, contributing to one third of its overall income as consumers embrace quality products and imported merchandise from NetEase's Kaola cross-border shopping unit.
Online gaming income was up 37.7 percent to 11.02 billion yuan.
"Our research and development capabilities, particularly in the mobile arena, have provided us with exciting opportunities to appeal to a global audience and we plan to continue to invest in global talent, intellectual property holders and collaboration with other elite game developers worldwide to further this momentum," commented Chief Executive Officer and Director Ding Lei.
"While online games remain the cornerstone of our business, we also see huge potential in e-commerce, music and online education and these will be the primary focus of our business strategy in 2019," he also noted.
According to the China Gaming Industry Report by the Game Publishing Working Committee under the China Audio-Video and Digital Publishing Association, China's gaming market size reached 214.4 billion yuan, accounting for 23.6 percent of the global market size.
Domestic news portal Caijing reported earlier this week that NetEase is seeking to combine its business with part of Amazon China's online retailing business through a share swap deal. NetEase declined to comment.
NetEase has been driving its user base from its gaming and online portal business to adopt online purchasing from its online shopping affiliate for home electronics, apparel and luxury goods.