On Thursday, NetEase announced mixed second-quarter financial data, with its revenue failing to meet analysts’ estimates despite the growing video game sector.
Its stock price declined by -11.17% to $82.25 apiece on August 23. However, it is expected to rise by 0.18% to $82.40 per share in the after-hours session.
The game developer’s earnings per share (EPS) improved to $12.05, beating analysts’ $11.97 estimate and the previous $10.37 data.
Meanwhile, its revenue dropped to $25.49 billion, failing to surpass the $26.11 billion forecast and the $26.85 billion of the past quarter.
NetEase games and related value-added services boosted its revenue, improving by 6.70% to $2.80 billion.
Furthermore, the firm reported a net income of around $952.00 million, 17.00% down year-over-year from experts’ outlook.
On its third anniversary, its Nakara: Bladepoint title had the record number of daily active users (DAUs), and its Identity V game had record DAUs in July and August.
The Chinese-based internet technology corporation’s adjusted basic net income inched down to $0.33, lower than the $0.39 from the prior year.
According to its Chief Executive Officer William Ding, the company’s growing portfolio, featuring higher quality and more genres, will bring the NetEase gaming experience globally. He added that innovation remains the company’s top priority while expanding its scope to players in China and worldwide.
Hang Seng Index Pulled Back by NetEase, Baidu
On Friday, the Hang Seng index was brought down by weak earnings from Chinese blue chips such as NetEase and Baidu. The drop jeopardized its chances of a third straight weekly gain.
NetEase plummeted 13.40%, making it the biggest loser among the 82 blue-chip index members following its Q2 missed consensus.
Meanwhile, the shipping giant Orient Overseas International dropped by 7.80% after its interim earnings slid by 26.00% year-on-year.
Also, the Chinese internet search entity Baidu shed 6.00% after announcing a flat second-quarter revenue.
