- Game maker NetEase (NASDAQ:NTES) put in a mixed Q1 report as revenues fell short of expectations, despite doubling on the strength of mobile games.
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Fantasy Westward Journey and Westward Journey Online continued strong showings in China's iOS app store, supplemented by additions Kung Fu Panda 3 and The X-World.
- Net income afer tax came to $3.09/share, beating an expected $2.47/share.
- Gross profit came to 4.59B yuan ($711.3M), up 84.3%. Gross profit margin on online games fell to 67.1% from a year-ago 73.1%; on the ad services business, it rose to 62.4% from 59.2%, and on e-mail, e-commerce and others, 20.4% vs. a year-ago 38.9%.
- Revenue by segment: Online game services, 6.02B yuan ($932.9M, up 104.5%); Advertising service, 393.2M yuan ($60.98M, up 32%); E-mail, e-commerce and others, 1.51B yuan ($233.7M, up 257.8%).
- Cash and equivalents and various short-term investments came to 28.4B yuan (about $4.4B); cash flow from operations was 3.1B yuan (about $479.6M).
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Conference call coming up at 9 p.m. ET.
- Press release