Prnewswireยท2024-11-14 08:30Core Viewpoint - NetEase reported a decline in net revenues and net income for the third quarter of 2024 compared to the same period in 2023, while showing growth in specific segments like Youdao and NetEase Cloud Music [2][4][7]. Financial Highlights - Net revenues for Q3 2024 were RMB26.2 billion (US$3.7 billion), a decrease of 3.9% year-over-year [2][4]. - Net revenues from games and related value-added services were RMB20.9 billion (US$3.0 billion), down 4.2% compared to Q3 2023 [2][4]. - Youdao's net revenues increased by 2.2% to RMB1.6 billion (US$224.1 million) [2][4]. - NetEase Cloud Music's net revenues rose by 1.3% to RMB2.0 billion (US$284.9 million) [2][4]. - Gross profit was RMB16.5 billion (US$2.3 billion), a decrease of 2.9% year-over-year [2][4]. - Net income attributable to shareholders was RMB6.5 billion (US$931.7 million), down from RMB7.8 billion in Q3 2023 [7][4]. Operational Highlights - The company launched new titles and expanded existing games, enhancing its competitive position [3]. - The mobile game "Naraka: Bladepoint" reached No. 4 on the iOS grossing chart following its September update [3]. - "World of Warcraft" and "Hearthstone" saw significant increases in daily active players after their relaunch in China, with "World of Warcraft" up 50% and "Hearthstone" over 150% [3]. - Youdao achieved its first-ever operating profit in Q3 2024, marking a significant turnaround [3]. Gross Profit and Margins - Gross profit margin for games and related services was 68.8%, down from 70.0% in the previous quarter [5]. - Youdao's gross profit margin improved to 50.2%, while NetEase Cloud Music's margin increased to 32.8% [6][5]. Operating Expenses - Total operating expenses were RMB9.3 billion (US$1.3 billion), a slight decrease of 0.8% year-over-year [2][4]. - Increased marketing expenditures contributed to the quarter-over-quarter rise in operating expenses [6]. Income Tax and Net Income - The effective tax rate for Q3 2024 was 16.1%, slightly up from 14.2% in Q3 2023 [7]. - Non-GAAP net income attributable to shareholders was RMB7.5 billion (US$1.1 billion), down from RMB8.6 billion in Q3 2023 [7]. Cash Position and Dividends - As of September 30, 2024, the company's net cash totaled RMB120.0 billion (US$17.1 billion), an increase from RMB110.9 billion at the end of 2023 [8]. - A dividend of US$0.0870 per share was approved for Q3 2024, payable in December 2024 [9]. Share Repurchase Program - The company has repurchased approximately 18.2 million ADSs for a total cost of US$1.6 billion under its share repurchase program [10].