In its fiscal 2021 financial report, Chinese gaming company NetEase reported steady business growth, especially in its online gaming services
NetEase Inc (NTES: NASDAQ: and 9999:HKEX), one of China's leading internet and online game services providers, has recently announced its financial results for the fourth quarter and fiscal year 2021 .
The company's financial report indicates that a net sale for the 12-month period reached USD 13.7 billion, up 21.24% year on year.
Profits rose 21.6% to USD 7.3 billion in 2021, compared to USD 6 billion in 2020.
Specifically, the net revenue of online game services reached USD 17.4 billion in the fourth quarter of 2021, an increase of 29.8% YoY, primarily due to increased net revenue from new games such as Naraka: Bladepoint and Harry Potter: Magic Awakened.
Despite the quarter-on-quarter drop in the gross profit of Youdao, an online education arm of NetEase, the company secured a net revenue of USD 1.3 billion, up 20.5% YoY, due primarily to business development from its learning services.
Youdao is one of the many victims of China’s crackdown on after-school tutoring for academic subjects under the country's compulsory education system.
Cloud Music, NetEase’s online music streaming service, also posted better results, driven by increased net revenue from its social entertainment services and others as well as improved cost control. Its net revenue hit USD 1.9 billion, leaping 23.9% YoY.
"While our flagship titles remain strong, we also introduced a number of highly successful games, including Naraka: Bladepoint and Harry Potter: Magic Awakened," said NetEase CEO and director William Ding.
He added that "these new titles further strengthen our portfolio and demonstrate our ability to develop world-class IP. For 2022, we are very excited to introduce more new games to broader populations, paving the way for solid growth."
NetEase's domestic competitors in Internet information services include Sina, Tencent and Sohu, whose 2021 fiscal year financial statement was also dissected in an EqualOcean article.
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