NetEase Inc (ADR)(NASDAQ: NTES) stock rose over 2.3% in the after-hours session on November 15th, 2017 post their third quarter of 2017 results. The stock delivered over 40.5% in this year to date (as of November 15th, 2017; Source: Google finance).
The group’s Net revenues surged 35.5% yoy to RMB12.5 billion (US$1.9 billion) for the third quarter of 2017. Their Online game services net revenues enhanced 23.5% yoy to RMB8.1 billion (US$1.2 billion), while Advertising services net revenues surged 12.1% yoy to RMB631.4 million (US$94.9 million). E-mail, e-commerce and others net revenues enhanced 79.5% yoy to RMB3.7 billion (US$561.3 million). They improved their Gross profit by 11.5% yoy to RMB5.9 billion (US$893.9 million), during the quarter.
The group is revamping their business by launching new content and promotional activities as well as launched several expansion packs and new mobile titles. Moreover, their reception to Onmyoji is going strong while their early testing for the battle arena game based on Onmyoji IP is on track. The group’s Kaola.com and Yanxuan brands performance is also going strong. Their Minecraft launch in China for PC JAVA, Android and iOS platforms, attracted over 30 million new registered users as of the end of October 2017.
Netease acquired Onmyoji to Korea and launched closed beta testing in the U.S. and Canada. The group’s Crusaders of Light became the top-grossing games in more than 20 different countries after its launch. The group continues to diversify its portfolio while its pipeline comprises MMORPG like Chu Liu Xiang and Tribes and Empires: Storm of Prophecy, Japanese-themed RPG Forever 7 and card game HAN-GYAKU-SEI Million Arthur, as well as a battle arena game based on Onmyoji IP.
The group approved a dividend of US$0.72 per ADS for the third quarter of 2017, which would be paid for shareholders on December 8, 2017. But this is a decrease as compared to the dividend of US$1.08 per ADS paid during the first quarter of 2017 on June 2, 2017 and a dividend of US$0.83 per ADS for the second quarter of 2017 on September 1, 2017.