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NetEase Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results
NTESNTES(NTES) Prnewswire·2025-02-20 08:30

Core Viewpoint - NetEase, Inc. reported its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, highlighting a strong performance in gaming and related services, despite some declines in specific segments [1]. Financial Highlights - Net revenues for Q4 2024 were RMB 26.7 billion (US3.7billion),aslightdecreaseof1.4 3.7 billion), a slight decrease of 1.4% compared to Q4 2023 [7]. - Net revenues from games and related services were RMB 21.2 billion (US 2.9 billion), an increase of 1.5% year-over-year [8]. - Gross profit for Q4 2024 was RMB 16.3 billion (US2.2billion),down3.3 2.2 billion), down 3.3% from the same quarter in 2023 [11]. - Net income attributable to shareholders for Q4 2024 was RMB 8.8 billion (US 1.2 billion), compared to RMB 6.6 billion in Q4 2023 [21]. Operational Highlights - The company launched several successful new titles, including "Marvel Rivals," which quickly became a top seller on Steam, and "Where Winds Meet," which achieved over 3 million downloads shortly after launch [13]. - Youdao and NetEase Cloud Music showed healthy development, with Youdao achieving a 10.3% year-over-year increase in operating profit [6][13]. Fiscal Year 2024 Results - Total net revenues for fiscal year 2024 were RMB 105.3 billion (US14.4billion),upfromRMB103.5billionin2023[23].−NetrevenuesfromgamesandrelatedservicesforthefiscalyearwereRMB83.6billion(US 14.4 billion), up from RMB 103.5 billion in 2023 [23]. - Net revenues from games and related services for the fiscal year were RMB 83.6 billion (US 11.5 billion), an increase from RMB 81.6 billion in 2023 [24]. - Net income attributable to shareholders for fiscal year 2024 was RMB 29.7 billion (US4.1billion),slightlyupfromRMB29.4billionin2023[32].GrossProfitandMargins−GrossprofitmarginforgamesandrelatedservicesinQ42024was66.7 4.1 billion), slightly up from RMB 29.4 billion in 2023 [32]. Gross Profit and Margins - Gross profit margin for games and related services in Q4 2024 was 66.7%, down from 69.5% in Q4 2023 [14]. - Gross profit margin for Youdao was 47.8%, a decrease from 49.9% in the same quarter of 2023 [15]. - NetEase Cloud Music's gross profit margin improved to 31.9% year-over-year, attributed to better cost control and increased subscription revenues [16]. Operating Expenses - Total operating expenses for Q4 2024 were RMB 8.5 billion (US 1.2 billion), a decrease of 15.1% compared to Q4 2023 [18]. - The reduction in operating expenses was primarily due to lower marketing expenditures related to games [18]. Cash Flow and Dividends - Net cash provided by operating activities for fiscal year 2024 was RMB 39.7 billion (US5.4billion),anincreasefromRMB35.3billionin2023[34].−TheboardapprovedadividendofUS 5.4 billion), an increase from RMB 35.3 billion in 2023 [34]. - The board approved a dividend of US 0.24405 per share for Q4 2024, payable in March 2025 [35].