Gaming giant NetEase’s Q1 revenue missed expectations

 

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Chinese game giant NetEase reported a revenue of 24 billion yuan for the second quarter of the year, slightly lower than market expected 24.78 billion yuan, higher than 23.2 billion yuan a year earlier.

Non-GAAP net profit from continuing operations reached 9 billion yuan, surging 67% from a year earlier. 

Net revenue from online game services reached 18.8 billion yuan, missing expectation of 19.5 billion yuan. Net revenue from innovative and other business reached 2.06 billion yuan, slightly lower than expected 2.08 billion yuan. 

Gross profit from online gaming services reached 12.68 billion yuan in Q2, compared to expected 12.2 billion yuan, leaving a gross profit margin of 67.4%, versus expected 66.2%.