Netease (ticker: NTES) reported Q2 2005 earnings results that beat consensus revenue and earnings per ADS estimates. Key stats from the quarter:
(all percentage changes and comparisons are year on year, unless stated otherwise, assumes RMB 8.2765 : US $1)
- Total revenue rose 90.2% to $50.4 million vs consensus of $44.11 million.
- Net revenue rose 90.0% to $47.4 million.
- Online gaming services revenue rose 146.5% to $41.5 million.
- Advertising services revenue rose 30.8% to $6.5 million.
- Wireless value added services revenue fell 49.2% to $2.4 million.
- Gross margin was 78.4% vs 75.0%.
- Operating expenses rose 25.8% to $9.7 million.
- Sales and marketing expenses rose 18.8% to $4.3 million.
- G&A expenses rose 18.4% to $3.7 million.
- R&D expenses rose 73.3% to $1.8 million.
- Operating income rose 145.2% to $29.8 million.
- Operating margin was 59.2% vs 45.9%.
- Net income rose 147.0% to $29.3 million.
- Diluted earnings per ADS of $0.83 vs consensus estimate of $0.66.
- Cash and equivalents of $329.2 million as of June 30, 2005.
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