NetEase on track for solid third-quarter earnings growth
Chinese online and mobile games giant to see strong revenue increase from popular online desktop titles
NetEase, China’s second-largest online and mobile video game services provider, is poised to report solid year-on-year earnings growth for the quarter to September 30 on the back of strong performance of its desktop games, analysts said.
The Nasdaq-listed company, which will report its third-quarter financial results on Wednesday in the United States after the close of trading, is expected to post a 37 per cent increase in net profit to 2.58 billion yuan (HK$2.96 billion), up from 1.88 billion yuan in the same period last year, according to a report by Nomura.
That was in line with market analysts’ consensus estimate of 2.57 billion yuan.
Nomura also projected total third-quarter revenue for NetEase to rise 39 per cent to 9.30 billion yuan from 6.67 billion yuan a year earlier.
Its revenue forecast was below the market consensus estimate of 9.66 billion yuan.
“Personal computer gaming revenue likely rose 19 per cent year on year and 15 per cent quarter on quarter, driven by Overwatch and the launch of World of Warcraft’s expansion pack in August,” research analyst Shi Jialong, lead author of the Nomura report, said.
