In the third quarter, NetEase earned $2.6 billion on games — less than Tencent, but more than Activision Blizzard and EA

China’s NetEase reported for the third quarter ended September 30, 2022. We look at the company’s indicators.

▪️Net revenue of the entire NetEase amounted to $3.4 billion. An increase of 10.1% in annual terms.

The lion’s share of the company’s amount was brought by its gaming division — $2.6 billion. Moreover, 69% of these $2.6 billion generated mobile games.

As a result, NetEase was able to outperform a number of large Western companies in terms of revenue from games for July-September 2022. For example, it beat Electronic Arts ($1.9 billion), Activision Blizzard ($1.7 billion) and Take-Two ($1.4 billion). Despite this, NetEase is still significantly inferior to Tencent, whose gaming revenue exceeded $6 billion in the third quarter.

NetEase also noted in the report that the termination of the agreement with Blizzard to publish games in China should not significantly affect future revenue.