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 World of Warcraft , internal games boost financials for China's Netease

World of Warcraft, internal games boost financials for China's Netease

February 17, 2012 | By Eric Caoili




Chinese internet services provider and online game company NetEase reported a jump in its revenues and profits for the fourth quarter (ending December), capping a "year of strong growth" for the firm.

NetEase said its localized version of Blizzard Entertainment's MMORPG World of Warcraft, along with titles like Fantasy Westward Journey and Westward Journey Online II, were the primary drivers for its online game services revenue in 2011.

For the fourth quarter, though, internally developed titles like Tianxia III and Ghost led the 19 percent year-over-year increase the company enjoyed for its revenues, which came out to 2.1 billion ($333.4 million). Netease's profit during that three-month period also increased by 21 percent to 898.6 million ($142.7 million).

For the fiscal year, the Chinese company noted that along with online games, gains in advertising sales also contributed greatly to its success. Its revenues grew to 7.5 billion ($1.19 billion) from 5.7 billion ($905 million) the previous year, while its profits reached 3.2 billion ($508 million) compared to 1.2 billion ($190.5 million) in fiscal 2010.

Going into the new calendar year, the company intends to bolster its portfolio in the first half with expansion packs for Heroes of Tang Dynasty, Westward Journey Online II, Warsong of Westward Journey, New Fly For Fun, and Legend of Fairy. Netease also has two new self-developed titles that it will beta test in mid-2012.


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