What led NetEase Inc (NASDAQ: NTES) stock rise

Free $100 Forex No-Deposit Bonus

NetEase Inc (NASDAQ: NTES) stock rose over 6.9% on 8th August, 2019 (as of 11:37 am GMT-4; Source: Google finance) after the company reported a 46% jump in earnings to $448.4 million for the second quarter of 2019 though posted mixed results for the period. During the latest quarter, the company incurred lesser foreign exchange gain due to unrealized exchange gains and losses arising from its US dollar-denominated bank deposits and short-term loan balances.

NTES in the second quarter of FY 19 has reported the adjusted earnings per share of $3.44, beating the analysts’ estimates for the adjusted earnings per share of $2.66. The company had reported the adjusted revenue growth of 15 percent to $2.73 billion in the second quarter of FY 19, missing the analysts’ estimates for revenue of $2.77 billion. Online game services revenue jumped by 14% and e-commerce revenue climbed by 20%. Innovative businesses and other revenues grew by 23.2% while advertising services revenues fell by 8.3%. Online game services revenues continued to grow steadily with the support of a diversified portfolio and impressive performances from all of the company’s leading titles. Net revenue from mobile games accounted for approximately 72.2% of revenues from online game services for the second quarter, down from 74.7% a year ago.

For the second quarter, online game services showed an increase in gross profit backed by mobile games such as Life-After, as well as certain PC-client games such as Justice and Fantasy Westward Journey Online. E-commerce gross profit increased due to the sales volume of Kaola and Yanxuan, as well as continuously improved procurement and operation processes.

For the second quarter, the advertising services segment experienced a decrease in revenue contribution based on evolving competitive macro-environment, and increased expenses related to staff and content purchases. Despite this, the top-performing advertising verticals were real estate, automobile, and internet services sectors.

Additionally, NTES has approved a dividend of $1.04 per ADS for the second quarter, which is expected to be paid on August 30, 2019, to shareholders of record as on August 23, 2019. The company paid a dividend of $0.69 per ADS for the first quarter of 2019 on June 7. The board determined that starting in the second quarter of 2019, quarterly dividends will be set at an amount equivalent to about 20% to 30% of its anticipated net income after tax in each fiscal quarter.

Copyright © 2019. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.