Tencent Technology News, November 19 NetEase (NASDAQ: NTES) on Thursday released the company's third quarter financial statements as of September 30, 2020. According to the financial report, NetEase’s total revenue in the third quarter was 18.7 billion yuan (US$2.7 billion), a year-on-year increase of 27.5%; net profit attributable to NetEase was 2.998 billion yuan (US$441.6 million).
NetEase CEO Ding Lei and CFO Yang Zhaoxuan attended the earnings conference call to interpret the key points of the earnings report and answer questions from analysts.
The following is the transcript of the earnings conference call:
Analyst: I would like to ask about the overseas strategy of the game business. During the nine to ten months of the epidemic, in fact, China has had many games going overseas and achieved great success. In addition, some Chinese RPG (role playing) games are also very successful. Seeing the recent major trends, do you have any new ideas? For example, what areas and what types of games will be released overseas? Besides, what about investment? You have a lot of cash, and the competition is still fierce, because everyone is going to sea. Can you talk about your thoughts in this regard?
Ding Lei: We have always attached great importance to the overseas game market. In addition to our successful "Wild Action" and "Fifth Personality" in Japan, we will continue to have some new products for overseas markets. For example, "Harry Potter" which will be launched soon, as well as future projects with other themes, will be very high-quality. In fact, we have also achieved good results with the game "UNO" abroad. Therefore, we are very confident. We see that other companies are doing well, and we are very confident that they are doing better and better than them! The above is the situation of our overseas games.
Analyst: I have seen that in the operation of the game, your product portfolio strategy, strong content and IP integration have been in fact progressing very well. I want to ask again, how should we view the development of this entire industry, whether it is China or abroad? Maybe we have seen it in China, and there may be investors who are worried about whether the game will be saturated next year. You are also launching many different games for overseas markets. For you, is the opportunity more in strategy and ACG (anime style games)? Because, in overseas markets, many foreign strong IP games, especially Europe and the United States, use strategic games to attack. Can you talk about your views on the entire market and what the company's strategy is in the next three to five years?
Ding Lei: We are very optimistic. Two days ago, Sony’s Play Station 5 and Xbox were released globally. So far, sold out. In addition, this epidemic has also allowed many people to entertain more than just watching dramas at home, they also participate more in interactive games. Therefore, we are very, very optimistic about the global game market, and I believe this is a very good industry. We have been in this industry for 20 years, we have also accumulated a lot of experience, we also have a very large R&D team, and a lot of R&D expenditures are spent in this field. Therefore, we are very confident that in the future, both in China and overseas markets, we will achieve better results. We hope that the overseas market is not only Japan, we also hope to have the opportunity to achieve great success in Europe and America.
(Continuously updating......)
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