NetEase's interim net profit jumps 31 pc to 18.9b yuan

Chinese internet and games provider NetEase's (9999) interim net profit jumped 31 percent year-on-year to 18.9 billion yuan (HK$20.7 billion).

Net revenue for the first half year rose 8.4 percent to 56.7 billion yuan.

In the second quarter, its net profit saw an increase of 27.3 percent to 8.6 billion yuan, while its net revenue grew 9.4 percent to 27.9 billion yuan, lower than market expectations of 28.3 billion yuan.

Adjusted net profit rose 21.9 percent to 9.5 billion yuan for the three months ended in June, also below the market forecast of 9.6 billion yuan.

Revenue from games and related value-added services rose 13.7 percent year-on-year to 22.8 billion yuan in the second quarter, primarily driven by Identity V, several newly launched titles, and certain licensed games.

Its subsidiary Youdao - an intelligent learning company-witnessed 7.2 percent growth in second-quarter net revenue to 1.4 billion yuan, thanks to its increased revenue from online marketing services and learning services.

However, its online music platform, NetEase Cloud Music's (9899) net revenue decreased 3.5 percent to 2 billion yuan for the second quarter.

NetEase's share price dropped about 6.42 percent before the US stock market opened.

HELEN ZHONG