BEIJING, May 24 (TMTPOST) — Chinese Internet company NetEase’s net profit went down by 20% in Q1 2022 when compared with the previous quarter, according to the company’s latest quarterly earnings report released on Tuesday.
In Q1 2022, NetEase achieved revenues of 23.6 billion yuan, registering year-on-year growth of 14.8%. Net profit attributable to the company’s shareholders was around 4.39 billion yuan, down 22.8% from the previous quarter and 1.01% from the same period of 2021.
Net revenues from the online gaming business were around 17.3 billion yuan. The mobile gaming business contributed 66.9% of the revenues from online gaming.
NetEase Youdao reaped around 1.2 billion yuan in revenues, down 10.4% year-on-year. The company noted that the decline in revenues was caused by the suspension of its school curriculum tutoring business.
Revenues from NetEase Music were about 2.07 billion yuan.
Net revenues from innovative businesses and other business sectors were RMB3.0 billion (US$475.7 million), representing an increase of 11.5% compared with the first quarter of 2021.
The earnings report also shows that the company invested 3.4 billion yuan in research and development in Q1.
"Strong contributions from our steady online game services led our healthy growth in the first quarter with total net revenues of RMB23.6 billion, an increase of 14.8% year-over-year," said William Ding, CEO and Director of NetEase. "Both our flagship titles and many of our newer games continued to captivate our enthusiastic player community. With the April releases of Revelation mobile game, The Lord of the Rings: Rise to War and Dead by Daylight Mobile – NetEase, we reached more players overseas. With confirmed plans to release Diablo Immorta in June, we are eager to bring players more amazing titles later this year."
"Our other business lines, including Youdao, NetEase Cloud Music and Yanxuan, are also on track. We look forward to creating additional value for our stakeholders and bringing more creative content to our growing global community through the remainder of 2022," Ding concluded.