Today, NetEase released the company's third quarter 2020 financial report as of September 30. According to data, NetEase’s net revenue in the third quarter was RMB 18.7 billion, an increase of 27.5% year-on-year; the net profit from continuing operations attributable to shareholders of NetEase was RMB 2.998.2 billion, compared with RMB 4.5378 billion in the previous quarter and the same period last year. 4.134.2 billion yuan; based on non-US GAAP, net profit attributable to NetEase shareholders from continuing operations was 3.669.2 billion yuan, compared with 5.226 billion yuan and 4.726 billion yuan in the previous quarter and the same period last year.
From the perspective of revenue composition, NetEase’s main source of revenue is still online game services. In this quarter, NetEase's net revenue was 18.7 billion yuan. Among them, the revenue from online game services accounted for about 74.3%, and the net revenue of this part was 13.9 billion yuan, a year-on-year increase of 20.2%. Net revenue from mobile games accounted for 72.7% of net revenue from online game services, which accounted for 72.3% and 71.0% in the previous quarter and the same period last year. NetEase Youdao's net revenue was 896 million yuan, a year-on-year increase of 159.0%; the innovation and other business net revenue was 3.9 billion yuan, a year-on-year increase of 41.6%.
From the perspective of online game business, many of NetEase's games have maintained a steady growth trend. Among them, in mobile games, games such as "Side of the Earth", "Onmyoji", and "Light Yu" have recently ranked among the top bestsellers of China's iOS; in terms of mobile games, the computer version of "Fantasy Westward Journey" and "Western Journey 2" "And" Against the Water Cold" and other performances were stable. In this quarter, NetEase also launched "Onmyoji: Monster House", "Live Club Manager", "King of the Hunter" and "Picture Traveler in Time and Space" in the Chinese market; and launched "Eve of Star Wars" in overseas markets. : No Ember Galaxy" and "Marvel Showdown" have gained the attention and love of global users.
In NetEase Youdao, the K12 business of Youdao Premium Course has become the main growth engine. Data shows that NetEase Youdao’s K12 sales in the third quarter were 680 million yuan, an increase of 368.9% year-on-year; regular-price payers reached 499,000, an increase of 437.9% year-on-year. Intelligent learning hardware contributed 160 million yuan in revenue, an increase of 289.3% year-on-year. In terms of NetEase Cloud Music, as of October this year, NetEase Cloud Music has more than 200,000 original musicians, a 10-fold increase in 4 years. At the same time, NetEase Cloud Music has successively reached strategic cooperation with partners such as Universal Music, BMG, Zhang Jie, Shaoyun Music and Entertainment, and the music ecological layout continues to expand. In this financial report, NetEase CEO Ding Lei said, “Thanks to the increasingly rich and diversified game product matrix and its long-lasting vitality, NetEase games have shown a strong momentum. NetEase Youdao, NetEase Cloud Music and NetEase Yanxuan, etc. The business is also moving towards their goals in an orderly manner, and their respective revenues have achieved year-on-year growth. While we strive to create more value for users and shareholders, we will continue to explore the sustainable growth of each business line."
[The picture in this article comes from the Internet]
