NetEase.com Records Larger Revenue From Internet Games In China
Chinese Internet and online game firm NetEase.com Inc. says its total revenues for the second quarter of 2010 was CNY1.3 billion as it announced its unaudited financial results for the second quarter ended June 30, 2010.
Those revenues of CNY1.3 billion compared to CNY1.2 billion and CNY872.1 million for the preceding quarter and the second quarter of 2009, respectively. Revenues specifically from online games were CNY1.2 billion for the second quarter of 2010, compared to CNY1.1 billion and CNY781.5 million for the preceding quarter and the second quarter of 2009, respectively. Revenues from advertising services were CNY145.9 million for the second quarter of 2010, compared to CNY91.5 million and CNY72.8 million for the preceding quarter and the second quarter of 2009, respectively. Revenues from wireless value-added services and others were CNY19.9 million for the second quarter of 2010, compared to CNY18.1 million and CNY17.8 million for the preceding quarter and the second quarter of 2009, respectively.
Gross profit for the second quarter of 2010 was CNY878.4 million, compared to CNY780.7 million and CNY691.9 million for the preceding quarter and the second quarter of 2009, respectively.
Gross loss margin for the WVAS and others business for the second quarter of 2010 was 38.7%, compared to 34.0% and 43.0% for the preceding quarter and the second quarter of 2009, respectively.
Total operating expenses for the second quarter of 2010 were CNY268.7 million, compared to CNY225.7 million and CNY174.8 million for the preceding quarter and the second quarter of 2009, respectively. The quarter-over-quarter increase in operating expenses was primarily due to marketing promotion for Fantasy Westward Journey and Blizzard Entertainment’s World of Warcraft, increased bad debt provisions and increased share-based compensation cost relating to grants made under the company’s new restricted share unit plan in the current quarter.
Net profit for the second quarter of 2010 totaled CNY485.7 million, compared to CNY452.3 million and CNY468.1 million for the preceding quarter and the second quarter of 2009, respectively.
As of June 30, 2010, the company’s total cash and time deposit balance was CNY8.3 billion, compared to CNY7.0 billion as of December 31, 2009.