Netease's net revenue in the first quarter was 23.6 billion, and its games were actively deployed in overseas markets. Netease's four major sectors are online games, Netease Youdao, Netease cloud music, innovation and other businesses. In the first quarter, except Netease, the income of other sectors showed an upward trend. Netease's net revenue in the first quarter was 23.6 billion, and the game was actively deployed in overseas markets.
Netease's net revenue in the first quarter was 23.6 billion, and the game was actively deployed in overseas markets. On May 24th, Netease released its first-quarter financial report, and its revenue still increased, but its profit hardly increased.
In the first quarter, Netease achieved revenue of 2.3 billion yuan, a year-on-year increase of14.8%; According to US GAAP, the net profit attributable to shareholders of the company was 4.39 billion yuan, slightly lower than 4.44 billion yuan in the same period last year. Excluding the impact of equity incentives, based on non-GAAP, the net profit attributable to shareholders of the company was 56,543.80 billion yuan, a slight increase from 5.08 billion yuan in the same period last year.
To sum up, Netease increased its revenue in the first quarter without increasing profits.
From the performance of various businesses, Netease's most important online game business achieved revenue of 654.38+0.73 billion yuan, a year-on-year increase of 654.38+05.3%; Youdao realized revenue of1200 million yuan, down10.4% year-on-year; Cloud music achieved revenue of 2 1 100 million yuan, a year-on-year increase of 38.6%; The income from innovation and other businesses reached 3 billion yuan, up 1 1.5% year-on-year.
Game business accounts for 73% of the total revenue, and it is still the core sector of Netease.
On May 20th, Netease held a game conference and announced the latest progress of more than 40 games. The key product "Diablo Immortal" will be open beta on June 23, and it is expected to increase the traffic of Netease games after it goes online.
According to Netease statistics, the number of domestic bookings for Diablo Immortal has exceeded150,000, and the number of global bookings has exceeded 35 million. There are more overseas bookings than domestic ones, and increasing more overseas markets is also the general trend of the development of domestic game industry.
According to gamma statistics, in 20021year, the sales revenue of China manufacturers in overseas markets was1800 million US dollars, up16.59% year-on-year; China's game market sales revenue was 296.5 billion yuan, up 6.4% year-on-year. With the tightening of domestic supervision and fierce competition, overseas markets provide new growth opportunities for domestic manufacturers.
Netease has achieved good results in overseas markets. According to the statistics of Sensor Tower, in 20021year, 30 China mobile games were short-listed in the Japanese best-selling list Top 100, with a total cash intake of about US$ 3.46 billion, of which Mihayou Genshin Impact ranked the highest, followed by Netease's Wild Action.
At the conference call after the release of this financial report, Ding Lei, CEO of Netease, mentioned his concern about overseas markets. Ding Lei said that at present, more than 80% of Netease's R&D resources are invested in China, and the overseas proportion exceeds 10%. I hope it can be expanded to 40% to 50% in the future.
The European, American, Japanese and Korean markets are very important to Netease. Ding Lei said that Netease is actively seeking to discuss investment and cooperative development with overseas teams.
Yang, chief financial officer of Netease, revealed that Netease will also release Harry Potter: Magic Awakening in the Japanese market and The Lord of the Rings in the global market. In the future, Netease will cooperate with more content and intellectual property partners to develop more game products independently or cooperatively.
For Netease, whether the game can go to sea smoothly will be one of the main highlights of future performance.
Netease's net revenue in the first quarter was 23.6 billion, and the game was actively deployed in overseas markets. On the evening of May 24th, Netease announced its first quarter results in 2022. The financial report shows that Netease's net income in the first quarter was 23.556 billion yuan, a year-on-year increase of14.8%; The net profit was 4.394 billion yuan, slightly lower than 4.439 billion yuan in the same period last year and 5.694 billion yuan in the last quarter.
As of March 3, 2022, Netease's cash and cash equivalents, current and non-current time deposits and short-term investments totaled 654.38+007 billion yuan, and its cash flow from operating activities in the first quarter was 4.583 billion yuan, lower than that in the previous quarter (8.369 billion yuan) and the same period last year (5.543 billion yuan).
Game revenue continues to grow. At the analyst meeting after the earnings report, Ding Lei, CEO of Netease, focused on the future game going out to sea plan, and wanted to cooperate with more excellent overseas teams and let them participate in content development, hoping that overseas markets would account for 40%-50% of Netease's total game revenue.
Game revenue in the first quarter was 654.38+073 billion yuan.
35 million people around the world have subscribed to Diablo: Eternal Life.
From the perspective of income composition, Netease's four major sectors are online games, Netease Youdao, Netease cloud music, innovation and other businesses. In the first quarter, except Netease, the income of other sectors showed an upward trend.
Among them, game revenue still contributes the most. In the first quarter, the net income of Netease's online game service business was 65.438+0.73 billion yuan, a year-on-year increase of 654.38+05.3%.
The background is the slow growth of China's game market. According to the game industry report released by Gamma Data, in the first quarter of 2022, the actual sales revenue of the game market in China was 79.474 billion yuan, up 3. 17% year-on-year, lower than 202 1 in the same period. In terms of mobile games, in addition to long-term products such as Genshin Impact and Fantasy Westward Journey, new products such as Civilization and Conquest also contributed, but the growth rate of new tours was not as high as that of the same period last year.
According to the statistics of the third-party platform SensorTower, the TOP3 global revenues of mobile games in the first quarter were the glory of the king by Tencent, Survival of the Jedi and Genshin Impact by Mihayou. Genshin Impact has caused a worldwide craze. Will the rise of Mihayou have an impact on Netease?
"The global game market is huge, so it is difficult for Netease and Mihayou to roll up," Zhang Shule, a senior game industry analyst, told the Securities Daily reporter. "But in the first quarter, Netease's game performance can only be said to be quite satisfactory. The product continuity performance is as good as ever, and the quality is slightly ahead of domestic counterparts."
It is worth looking forward to that "Diablo: Eternal Life" jointly developed by Netease and Blizzard Entertainment will be launched in June. At present, the global booking volume of the game exceeds 35 million, and that of China exceeds150,000.
It is reported that Diablo: Eternal Life was developed based on Netease's self-developed engine Messiah. At present, Netease has two self-developed engines, Messiah and NeoX, which support game development such as Operation Wilderness, Teacher of Yin and Yang and Harry Potter: The Awakening of Magic.
In Zhang Shule's view, "Diablo and Harry Potter have different IP attributes. As a movie adaptation game, the latter is more about feelings, while Diablo IP has mature game features and a strong fan base. The success or failure of the new work also determines a key step for Netease to move from a game revenue giant to an international quality giant. "
Overseas market share of games 10%.
Ding Lei hopes to expand to 40%-50% in the future.
From August last year to April this year, there has been no new batch of domestic game version numbers, so the eyes of game manufacturers are on overseas markets, and Netease is no exception.
In April, Tianyu mobile games and Lord of the Rings: RisetoWar were launched in the Japanese market, which attracted the attention of overseas players. Next, Netease will launch the host and mobile versions of Never Being Robbed, Ghost Story and Harry Potter: The Magic Awakens in overseas markets.
At the analyst meeting after the financial report was released, Ding Lei, CEO of Netease, said, "Netease attaches great importance to overseas market and overseas game development. At present, Netease's overseas market revenue accounts for more than 10%. In the future, it is hoped that the proportion of overseas markets will reach 40%-50%. At the same time, Netease hopes to cooperate with more outstanding overseas teams and let them participate in content development. "
In fact, Netease is already accelerating the layout of global game talents. In June 5438+10, Netease established NagoshiStudio in Japan, led by the producer of the famous game "Like a Dragon" series, and will develop new games for the global market.
This month, Netease set up its first American game studio, dedicated to the development of PC and console games. JackEmmert, the head of the studio, has decades of experience in MMORPG. His main works are City of Heroes, City that Never Sleeps, Star Trek Online and DC Universe Online.
"Although the number of game versions has decreased compared with previous years, the trend of domestic boutique games has not changed, so overseas markets will remain an important market target for domestic game manufacturers for a long time to come."
A brokerage analyst told the Securities Daily reporter that during the period of 1.0, domestic game developers went out to sea one after another, replacing finished games with new skins and languages, while during the period of 2.0, they began to make localized products for different regions, and further attack was to integrate into the local game culture, set up local studios or acquire studios, and focus on research and development in different regions.
"The structure of game users with different themes, different terminals and different distribution areas is obviously different, but Netease is confident to make games that meet the needs of different regions, different consumer groups and different terminals." Ding Lei further stated.
Netease's net revenue in the first quarter was 23.6 billion, and the game was actively deployed in overseas markets. Netease announced the unaudited financial results for the first quarter ended March 3, 20221. In the first quarter of 2022, Netease's net revenue was 23.6 billion yuan, a year-on-year increase of14.8%; Under non-GAAP, the net profit attributable to shareholders of the company was 56,543.8+0.176 million yuan, down 65,438+0% year-on-year.
Blue Whale TMT Channel reported on May 24th that today, Netease announced the unaudited financial results for the first quarter ended March 3, 20221. In the first quarter of 2022, Netease's net revenue was 23.6 billion yuan (RMB, the same below), a year-on-year increase of14.8%; Under non-GAAP, the net profit attributable to shareholders of the company was 56,543.8+0.176 million yuan, down 65,438+0% year-on-year.
Specific to various businesses, the net income of online game services is 65.438+07.272 billion yuan, of which the net income of mobile games accounts for 66.9%, 68.3% in the last quarter and 72.8% in the first quarter of 2002/kloc-0. Youdao's net revenue is 65.438+0.2005 billion yuan; Netease Cloud Music's net revenue was 2.0672 billion yuan; The net revenue of innovative business and other businesses was RMB 3,065.438+RMB 54 million.
In addition, Netease invested 3.4 billion yuan in R&D in a single quarter, and its R&D investment intensity reached 14%. In the first quarter, Netease games accelerated the global R&D and talent distribution, and accelerated the promotion of self-developed games to the world. Netease Cloud Music's gross profit margin increased to 12%, and its original musicians were once again shortlisted for the Golden Melody Award. Netease has a way to expand R&D investment and increase the digitalization of education.
On May 20th, Diablo: Eternal Life, jointly developed by Netease and Blizzard Entertainment, announced that it would be released overseas on June 2nd and in China and Southeast Asia on June 23rd, 2022. At present, Diablo: Eternal Life has more than 35 million reservations worldwide, and China has more than150,000 reservations. It is worth noting that Diablo: Eternal Life was developed based on Netease's self-developed engine Messiah.
In April 2022, Netease YEATION celebrated its 6th anniversary. In the first quarter, Netease YEATION Pro members increased by 65% year-on-year. In March 2022, Netease Media became the first Internet company in the industry to provide customers with long-term panoramic meta-universe marketing solutions based on Netease technology and products such as virtual people, digital assets and virtual activity spaces.
Q 1 Netease news client video playback times increased by 44% year-on-year, per capita posting time increased by 83% year-on-year, the number of daily users of Netease open class increased by over 20% year-on-year, and the number of knowledge video authors of Netease number increased by 207% year-on-year.