NetEase.com (NTES)

[eastunder]

NetEase.com's 3Q profit climbs on stronger sales

NetEase.com posts higher 3rd-qtr profit on stronger advertising sales, demand for online games
By The Associated Press |

http://finance.yahoo.com/news/NetEase-com-3Q-profit-climbs-apf-452346147.html?x=0&l=1


Chinese online game and Web advertising company NetEase.com Inc. said Wednesday that its profit grew in the second quarter, aided by higher revenue amid stronger demand for online games and improved advertising services sales.

The Beijing-based company reported net income rose to 825.8 million yuan ($129.5 million), or 99 cents per American depositary share, for the three months ended Sept. 30. That compares with net income of 585.3 yuan a year earlier.

Revenue rose 39.5 percent to 2 billion yuan ($314.8 million), from 1.4 billion yuan in the prior-year quarter. The company attributed the sharp increase on continued interest in Blizzard Entertainment's World of Warcraft, along with its own roster of games.

Analysts had expected a profit of 88 cents per American depositary share on revenue of $281.2 million, according to FactSet.

NetEase said online games revenue increased nearly 40 percent from a year earlier, while advertising services sales grew 36 percent from a year earlier.

Management said it plans to release its first expansion pack to Heroes of Tang Dynasty in December. It also plans to release expansion packs for Datang and New Fly for Fun, and enter unlimited closed beta testing of launch a new massively multiplayer online role-playing game dubbed Legend of Fairy.

U.S.-traded shares of NetEase rose $1.28, or 2.8 percent, to $46.98 in aftermarket trading. The stock gained $1.46, or 3.3 percent, to $45.70 during the regular session.