Prnewswire·2025-11-20 08:30Core Viewpoint - NetEase, Inc. reported solid financial results for Q3 2025, demonstrating healthy growth in both domestic and international markets, particularly in gaming services, while also highlighting the company's commitment to innovation and user experience [5][10]. Financial Highlights - Net revenues for Q3 2025 reached RMB 28.4 billion (US$ 4.0 billion), marking an increase of 8.2% year-over-year [7][10]. - Net revenues from games and related services were RMB 23.3 billion (US$ 3.3 billion), up 11.8% compared to the same quarter in 2024 [8][10]. - Gross profit for the quarter was RMB 18.2 billion (US$ 2.6 billion), reflecting a 10.3% increase year-over-year [14][10]. - Net income attributable to shareholders was RMB 8.6 billion (US$ 1.2 billion), consistent with the previous quarter and up from RMB 6.5 billion in Q3 2024 [18][10]. Operational Highlights - The company emphasized its focus on user experience and innovation in gaming, with notable titles like Fantasy Westward Journey Online achieving record player counts [5][10]. - New game launches, including Destiny: Rising and ANANTA, received positive reception in both Western and Chinese markets [10]. - The company continues to strengthen its global portfolio with diverse game genres and collaborations with international partners [6][10]. Segment Performance - Youdao's net revenues were RMB 1.6 billion (US$ 228.8 million), a 3.6% increase year-over-year, driven by smart devices and online marketing services [9][10]. - NetEase Cloud Music reported stable revenues of RMB 2.0 billion (US$ 275.9 million), unchanged from the previous quarter and the same quarter last year [11][10]. - Innovative businesses and others saw a decline in revenues to RMB 1.4 billion (US$ 202.1 million), down 18.9% year-over-year, primarily due to decreased revenues from Yanxuan [12][10]. Cost and Expenses - Cost of revenues for Q3 2025 was RMB 10.2 billion (US$ 1.4 billion), an increase from RMB 9.8 billion in the previous quarter [13][10]. - Total operating expenses rose to RMB 10.2 billion (US$ 1.4 billion), reflecting increased marketing expenditures related to online games [15][10]. Cash Flow and Financial Position - As of September 30, 2025, the company's net cash totaled RMB 153.2 billion (US$ 21.5 billion), up from RMB 131.5 billion at the end of 2024 [21][10]. - Net cash provided by operating activities was RMB 12.9 billion (US$ 1.8 billion) for the quarter, compared to RMB 10.9 billion in the previous quarter [21][10]. Shareholder Returns - The board approved a dividend of US$ 0.1140 per share (US$ 0.5700 per ADS) for Q3 2025, payable on December 16, 2025 [22][10]. - The company extended its share repurchase program by an additional 36 months, with approximately 22.1 million ADSs repurchased for a total cost of US$ 2.0 billion as of September 30, 2025 [25][10].