NetEase's annual revenue from games was $6.67 billion. This is more than the earnings of Activision Blizzard and EA
China’s NetEase earns more from games than Activision Blizzard and EA. Niko Partners analyst Daniel Ahmad drew attention to this.
The NetEase website has a report for the 4th fiscal quarter of 2019 and for the entire fiscal year. It follows from it that NetEase’s gaming revenue exceeded the figures of two top American publishers:
- NetEase — $6.67 billion;
- Activision Blizzard — $6.49 billion;
- Electronic Arts — $5.39 billion
NetEase owes much of this achievement to its mobile line. The games Life-After, Invincible and Identity V are its main drivers of revenue growth. Another important growth factor, according to Niko Partners, is the regular release of updates for old NetEase titles.
Below are other important figures from the report. Note: these data have not been verified by auditors.
Fiscal year
- NetEase’s net revenue was $8.5 billion ($1.2 billion more than in 2018). Gross profit — $4.5 billion (against $3.9 billion a year earlier). This NetEase money is brought by the gaming business, the Youdao search engine, innovative branches, etc.
- The company’s net gaming revenue for the 2019 fiscal year reached $6.67 billion (increased by $1 billion in annual terms). Mobile games accounted for 71.4% of revenue.
- The main revenue of the aforementioned Life-After, Invincible and Identity V came from China. They were also heavily promoted in Japan. Knives Out’s “Battle Royale” has also been on the top of the charts there more than once.
Financial Quarter
- Net revenue — $2.26 billion. The annual growth was 9.2%. Gross profit reached $1.1 billion (an increase of 9% compared to the 4th fiscal quarter of 2018).
- The quarterly net income of the gaming business was $1.66 billion. This is $1 billion more than in the same quarter a year earlier. 70.4% — the share of mobile games.
- One of the main events of NetEase in Q4 was the launch of World of Warcraft Classic in China. The company publishes Blizzard games for the Chinese audience. The release of the “vanilla” version of WoW brought the title a record number of monthly subscribers.
- NetEase also celebrates the success of the Fantasy Westward Journey 3D launched in December. Immediately after the release, he topped the top downloads in the Chinese iOS store.
And the last. Judging by the report, NetEase has a fairly tight release schedule for 2020. It is planned to launch Harry Potter: Magic Awakened, EVE Echoes, Marvel Duel, Diablo: Immortal, Pokémon Quest and other projects.
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