"As an innovation-driven content creator, we will continue to deliver thoughtful premium content and products to our users across each of our carefully cultivated disciplines," said the CEO and director of NetEase, William Ding.
Third Quarter 2021 Financial Highlights
Net revenues were CNY 22.20 billion (USD 3.4 billion), an increase of 18.9% compared with the third quarter of 2020.
Online game services net revenues were CNY 15.9 billion (USD 2.5 billion), an increase of 14.7% compared with the third quarter of 2020.
Youdao net revenues were CNY 1.4 billion (USD 215.3 million), an increase of 54.8% compared with the third quarter of 2020.
- Innovative businesses and other net revenues reached CNY 4.9 billion (USD 761.1 million), an increase of 25.7% compared with the third quarter of 2020.
Gross profit was CNY 11.8 billion (USD 1.8 billion), an increase of 19.5% compared with the third quarter of 2020.
Total operating expenses were CNY 8 billion (USD 1.2 billion), an increase of 14.5% compared with the third quarter of 2020.
Net income attributable to the Company's shareholders was CNY 3.2 billion (USD 493.8 million). Non-GAAP net income attributable to the Company's shareholders was CNY 3.9 billion (USD 598.7 million).
Basic net income per share was USD 0.15 (USD 0.74 per ADS). Non-GAAP basic net income per share was USD 0.18 (USD 0.90 per ADS).
Third Quarter 2021 and Recent Operational Highlights
Expanded games portfolio with new games in more diverse genres, including:
Naraka: Bladepoint, which broke the sales record of buy-to-play games by Chinese developers and led the Steam top-sellers chart, remaining in the top 5 for weeks following its global launch in August.
Harry Potter: Magic Awakened, which led China's iOS top grossing chart and top download chart following its launch in September.
Exciting new titles in China such as Ace Racer, Infinite Lagrange and Nightmare Breaker.
Launched The Lord of the Rings: Rise to War in Europe, the Americas, Oceania and Southeast Asia.
Extended solid popularity of franchise titles including the Fantasy Westward Journey and Westward Journey Online series.
Enriched dynamic game development pipeline with exciting advancements to upcoming games including The Showbiz: Dream Chaser, the console version of Naraka: Bladepoint, Diablo® Immortal™, as well as Ghost World Chronicle, and Harry Potter: Magic Awakened in international markets.
Progressed Youdao's capabilities as an education technology provider, with steady advancements in STEAM courses, adult learning and smart learning hardware devices.
Expanded NetEase Cloud Music's content ecosystem and product innovation capabilities to strengthen its highly-engaged music-enteric community, delivering a solid financial performance.