Diagram to netease Q2 earnings: net profit of 1.1 billion yuan at a record high

hunting cloud network on August 15, message

netease (Nasdaq: NTES) today announced that the company as of June 30, 2013 in the second quarter unaudited financial results. Second quarter earnings, according to netease 2013 total revenue of 2.414 billion yuan ($393 million), up 20.4% from a year earlier, rose 6.9%; Net income of 1.095 billion yuan ($178 million), up 25.1% from a year earlier, rose 3.0%. Quarterly revenue and net income data are of record company history.

net easy company CEO and director Mr Ding said: “we are always committed to starting from traditional and mobile Internet users demand, through the positive development of online games category and other Internet products and services, and continuously expand our loyal users group. Independent research and development of good performance is attributed to the second quarter of the game and the growth of the advertising business. Second quarter revenue reached 2.4 billion yuan, up 20.4%, 18.2% of online games, advertising business growth of 33.3%.”

Mr Ding said: “we provide a variety of online games, mobile applications, and other Internet products and services, and effectively meet the needs of users of Internet products. In order to promote the development of the company, we will continue in the field of mobile games, as well as an online product independent research and development path of internationalization to explore. We focus on the progress of China’s Internet market, in promoting business growth at the same time, committed to the pursuit of excellence and returns to shareholders.”

total income of 2.4 billion yuan, game business income grew by 18.2% year on year, advertising revenue grew by 33.3% year on year

net yi in the second quarter 2013 total revenue of 2.414 billion yuan ($393 million), up 20.4% year on year, rose 6.9%. One online game service income of RMB 2.1 billion ($337 million), up 18.2% from a year earlier, rose 1.9%; Advertising revenue of RMB 272 million ($44.36 million), up 33.3% from a year earlier, rose 64.5%; Mail box, and other wireless value-added business income is 75.07 million yuan ($12.23 million), up 46.1% from a year earlier, rose 14.8%.

netease online gaming service revenue in the second quarter of 2013 to RMB 2.1 billion ($337 million), up 18.2% year on year, rose 1.9%.

Mr Ding lei said, “in the second quarter, more progress was made in our online game products. We have 3 d real-time strategy game “the hero of The Three Kingdoms” in the commercial test; And launched the “world 3”, “a Chinese Odyssey 2” and “westward journey 3” of the new expansion, and the mix ghosts “new upgrade version of the” mix wights 2 “. Mix them skip 2 April posted a record the highest number of online, and in the second quarter at new highs this game income. “Fantasy westward journey” and “westward journey 3” in the second quarter performance strong, mainly thanks to two months to the unit price adjustment, and may release the free version of “new westward journey 3”; “A Chinese Odyssey 2” are also stable performance; “Eternal” since its launch has been players, at the end of march public beta promotion leads, the second quarter results is good.”

“I am very pleased to announce that we have issued in early July by netease is one of the most popular products, a comprehensive upgrade version of the” fantasy westward journey “, “fantasy westward journey 2″ and its pocket edition mobile version. Mobile device provides a good platform for us to make our game players from a computer user extends to the mobile terminal users, further enhance the user experience. We plan to take this opportunity to make use of our research and development strength, released in the coming months more exciting mobile phone game.”

“in advance of cell phone game development at the same time in the third quarter, we continue to launch new expansion and new work. At the end of July, we issued the “fairy legend” and “new feifei” new expansion; In August, next generation 3 d MMORPG game “dragon sword” begin commercial test, further enriches our game category, hope to bring good user experience, and look forward to continue to expand the testing scope. September we will be in “a Chinese Odyssey 2” in recent years since the most significant upgrade; And publish the free version of the “westward journey 3” new expansion; At the same time, we also will be the hero of the three large-scale open test, hope to be able to to set up the China sports games. New game development work goes well, we’re ready to begin by the end of 2.5 D MMORPG game “Tibetan legend” the commercialization of the test, the other has a first person shooter game is developing.”

netease advertising service revenue in the second quarter of 2013 to RMB 272 million ($44.36 million), up 33.3% year on year, rose 64.5%.

netease mail in the second quarter of 2013, and other wireless value-added business income is 75.07 million yuan ($12.23 million), up 46.1% year on year, rose 14.8%.

Mr Ding lei said: “the portal business continue to present a good momentum. Affected by seasonal factors, advertising revenue rose 64.5%, up 33.3% from a year earlier. The best performing industry for traffic, network service and fast consumption category. Constantly improve the overall portal business thanks to the development of our in the mobile Internet and traditional portal integration and marketing service innovation. As of June 30, email users more than 570 million; Netease news client installation quantity more than 120 million, 40 million active users. Our new mobile application products are also starting to: at the end of April to launch the netease cloud music popular with customers. Youdao cloud notes good good momentum of development, in the second quarter of the number of users reached 15 million, at the end of the youdao dictionary total number of users has reached 350 million, of which more than 180 million mobile subscribers.

sales taxes

net yi in the second quarter of 2013 sales tax of RMB 149 million ($24.33 million), in the first quarter and the same period last year 105 million yuan and 41.78 million yuan respectively. The growth of the sales tax is mainly due to the reform of Chinese tax law, online gaming revenue from pay business tax to pay VAT, and in the second quarter reflected the change of the influence of a full quarter. VAT increase previously included in the cost of sales is largely offset by group internal revenue of business tax, did not netease online games business gross margin have a significant impact. Due will be included in the sales tax, VAT makes net income decreases, leading to online game business gross margin rose.

gross profit of 1.7 billion yuan, integrated gross margin of 75%

netease in the second quarter of 2013 gross profit of 1.7 billion yuan ($277 million), the last quarter and year 1.5 billion yuan and 1.3 billion yuan respectively. Integrated gross margin of 75%, in the second quarter of the previous quarter and 72% and 67% respectively over the same period last year.

gross profit growth is mainly due to the advertising services and online gaming service gross profit growth, at the same time by email, and other wireless value-added business hair loss partly offset by increased.

on line game service income rose is mainly due to the independent research and development game “fantasy westward journey”, “eternal”, “mix wights 2” and “westward journey 3” income growth, but by acting game world of warcraft income under partially offset by the reduction. Online game service revenue year-on-year growth is mainly due to the independent research and development game “fantasy westward journey”, “eternal” and “mix wights 2” income growth, but was partially offset by a decline in world of warcraft income.

advertising revenue growth is mainly due to the traffic, network services, rapid consumption category advertisement service demand growth.

according to the business category, in the second quarter of 2013 online games gross margin of 80.9%, the previous quarter and 77.8% and 73.3% respectively over the same period last year. Gross profit rise is mainly due to the above-mentioned tax reform.

in the second quarter of 2013 advertising services gross margin of 55.5%, the previous quarter and 29.0% and 33.0% respectively over the same period last year. Gross margin year-on-year rise is mainly due to the scale, cost of advertising does not increase with the increase of the advertising revenue as the second quarter.

in the second quarter of 2013 mailbox, and other wireless value-added business gross loss rate was 21.0%, in the first quarter and 13.1% and 11.6% respectively over the same period last year. Changes in the rate of gross loss is mainly due to the mobile terminal applications such as netease cloud music and netease cloud reading operating costs increase.

operating costs 626 million yuan, the operating rate of 27.6%

in the second quarter of 2013 operating costs RMB 626 million ($102 million), in the first quarter and the same period last year 456 million yuan and 438 million yuan respectively. Operating rate is 27.6%, the previous quarter and 21.2% and 22.3% respectively over the same period last year. Operating costs increase is due to increased sales and marketing activities in the second quarter of 2013, mainly the mix ghosts 2, world of warcraft, “datang one like 2” and “eternal” and advertising promotional activities to increase, and for the development of game related cost.

net profit of 1.095 billion yuan, up 25.1% year on year, rose 3.0%

netease in the second quarter of 2013 operating profit of 1.072 billion yuan ($175 million), an increase of 21.3%, year-on-year increase to 1.7%. Operating margins of 47.3%, the previous quarter and 50.7% and 45.0% respectively over the same period last year.

in the second quarter of 2013 the company income tax expenses of RMB 132 million ($21.48 million), in the first quarter and the same period last year 143 million yuan and 150 million yuan respectively. In the second quarter of 2013 the actual rate is 10.8%, the previous quarter and 11.8% and 14.8% respectively over the same period last year. Group subsidiary in China in last year’s income tax payable or refundable amount claim additional deduction is allowed to research and development costs, resulting in the second quarter, confirm the relevant preferential income tax is 47.1 million yuan RMB.

group lasted for 2011 years the main subsidiaries of the high-tech enterprise qualification, 2011-2013 academic year can enjoy preferential enterprise income tax rate of 15%, in China customs office will have qualifications to undertake annual audit.

netease in the second quarter of 2013 net income of 1.095 billion yuan ($178 million), up 25.1% year on year, rose 3.0%. Net profit margin was 48.4%, the previous quarter and 49.4% and 44.6% respectively over the same period last year.

in the second quarter of 2013, the company posted a net exchange revenue of RMB 5.63 million ($920000), the previous quarter and the same period last year net exchange loss 9.31 million yuan and 36.03 million yuan respectively. Net exchange gains and losses from and compared with the change is mainly due to the company’s bank deposits and loan balance of foreign currency conversion from RMB to euro and the dollar exchange rate fluctuates conversion.

in the second quarter of 2013 net profit for the first American depositary receipts of $1.37 per share (basic and diluted). Last quarter is $1.34 (basic) and $1.33 (diluted), in the same period last year for $1.09 (basic) and $1.08 (diluted).

Other information

on June 30, 2013, the group’s cash and cash equivalents and deposit of RMB 16 billion ($2.6 billion), as of December 31, 2012, is RMB 15.2 billion yuan. nullnull