China’s NetEase sees net revenue soar 67.5pc for fiscal 2016

Gross profit up by 61.94 per cent to 21.7 billion yuan

PUBLISHED : Thursday, 16 February, 2017, 10:34pm
UPDATED : Thursday, 16 February, 2017, 10:34pm

NetEase, one of China’s leading internet and online game services providers, on Thursday reported total net revenue of 38.2 billion yuan (HK$43.23 billion) for the fiscal year 2016, 67.54 per cent higher year on year.

Gross profit for the full year ending December 31 was 21.7 billion yuan, 61.94 per cent higher than the 13.4 billion yuan reported in the preceding fiscal year.

Net revenues from online games amounted to 28.0 billion yuan, up 61.85 per cent year on year. Net revenues from advertising services reached 2.2 billion, up from 1.8 billion yuan in the previous year, while net revenues from e-mail, e-commerce and other businesses totalled 8 billion yuan, more than double the 3.7 billion in the prior year.

Net income attributable to the company’s shareholders for fiscal year 2016 totalled 11.6 billion yuan, compared to 6.7 billion for 2015.

The company also disclosed financial data for the fourth quarter. Net revenue increased 62.8 per cent

year on year for online games, 9.2 per cent for advertising services, and 38.2 per cent for the e-mail, e-commerce and others segments, reaching 12.1 billion yuan.

Gross profit for the fourth quarter was 6.46 billion yuan, compared to 5.33 billion yuan for the preceding quarter, and 4.22 billion yuan for the same period in 2015.

The board of directors approved a dividend of US$1.01 per ADS for the fourth quarter of 2016, which is expected to be paid on March 10, 2017 to shareholders, the company’s said.

“There remains massive opportunity within the mobile market,” said William Ding, chief executive officer and director of NetEase.

“We plan to add more mobile versions of our legacy titles and new self-developed and licensed mobile games,” he said.