NetEase (NTES) Tops Q3 EPS by 74c, Revenues Beat

NetEase (NASDAQ: NTES) reported Q3 EPS of $2.55, $0.74 better than the analyst estimate of $1.81. Revenue for the quarter came in at $2.45 billion versus the consensus estimate of $2.4 billion.

• Net revenues[1] were RMB16.9 billion (US$2.5 billion), an increase of 35.1% compared with the third quarter of 2017.
• Online game services net revenues were RMB10.3 billion (US$1.5 billion), an increase of 27.6% compared with the third quarter of 2017.
• E-commerce net revenues were RMB4.5 billion (US$649.2 million), an increase of 67.2% compared with the third quarter of 2017.
• Advertising services net revenues were RMB644.2 million (US$93.8 million), an increase of 2.0% compared with the third quarter of 2017.
• E-mail and others net revenues were RMB1.4 billion (US$204.4 million), an increase of 31.5% compared with the third quarter of 2017.
• Gross profit was RMB7.5 billion (US$1.1 billion), an increase of 26.9% compared with the third quarter of 2017.
• Total operating expenses were RMB5.4 billion (US$792.1 million), an increase of 60.1% compared with the third quarter of 2017.
• Net income attributable to the Company\'s shareholders was RMB1.6 billion (US$232.4 million). Non-GAAP net income attributable to the Company\'s shareholders was RMB2.3 billion (US$328.9 million). [2]
• Diluted earnings per ADS were US$1.80; non-GAAP diluted earnings per ADS were US$2.55.

"We are very pleased with the strong third quarter performances from each of our primary business lines, online games, e-commerce, advertising services and e-mail and others, which delivered 35.1% growth in total net revenues year-over-year," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "In the third quarter, net revenues for our online games stood above RMB10 billion for the second consecutive quarter, supported by a game portfolio that is more diversified than ever before."

For earnings history and earnings-related data on NetEase (NTES) click here.

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