NetEase Inc (NASDAQ:NTES) stock rose 1% (As on May 25, 11:56:53 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 22 has reported the net profit of 4.39 billion yuan ($660.1 million) for the quarter, down slightly from CNY4.44 billion a year earlier. The company’s first-quarter net profit fell 1.1% despite higher revenue, as steep investment losses weighed on the bottom line. Revenue rose 14.8% to CNY23.56 billion, driven by solid growth in its core online games business as well as a sales jump in the music-streaming operations. Gross profit was RMB12.8 billion (US$2.0 billion), an increase of 16.1% compared with the first quarter of 2021. Total operating expenses were RMB7.3 billion (US$1.2 billion), an increase of 8.1% compared with the first quarter of 2021. Non-GAAP net income attributable to the Company’s shareholders was RMB5.1 billion (US$807.3 million). As of March 31, 2022, the Company’s total cash and cash equivalents, current and non-current time deposits and short-term investments balance totaled RMB107.0 billion (US$16.9 billion), compared with RMB103.4 billion as of December 31, 2021.

Moreover, Online game services net revenues were RMB17.3 billion (US$2.7 billion), an increase of 15.3% compared with the first quarter of 2021. Youdao net revenues were RMB1.2 billion (US$189.4 million), a decrease of 10.4% compared with the first quarter of 2021. Cloud Music net revenues were RMB2.1 billion (US$326.1 million), an increase of 38.6% compared with the first quarter of 2021. Innovative businesses and others net revenues were RMB3.0 billion (US$475.7 million), an increase of 11.5% compared with the first quarter of 2021.

Further, Online game services gross profit was largely stable in the first quarter of 2022 compared with the preceding quarter. The year-over-year increase was mainly due to increased net revenues from newly launched games such as Naraka: Bladepoint and Harry Potter: Magic Awakened. The quarter-over-quarter and year-over-year decreases in Youdao gross profit were primarily due to the conclusion of its Academic AST Business. The quarter-over-quarter and year-over-year increases in Cloud Music gross profit were primarily due to increased net revenues from its membership subscriptions and social entertainment services, as well as improved cost control. The quarter-over-quarter decrease in innovative businesses and others gross profit was primarily due to a decrease in gross profit from advertising services due to seasonality.

Meanwhile, the board has approved a dividend of $0.3220 per ADS for Q1 versus $0.4050 per ADS paid in Q4.