NetEase, Inc. (NASDAQ: NTES ) has announced a strong financial performance for the first quarter of 2024, with net revenues reaching RMB26.9 billion, a 7.
2% increase compared to the same period last year. This growth has been fueled by the company's diverse gaming portfolio, including long-standing and new titles, as well as by its Youdao (NYSE: DAO ) and Cloud Music segments. NetEase also highlighted its strategic partnerships and a commitment to capital returns, including share repurchases and dividends.
Key Takeaways NetEase's Q1 2024 net revenue reached RMB26.9 billion, a 7.2% year-over-year increase.
The company's gaming division saw strong performance from both established franchises and new games, with innovations attracting new players. Youdao segment reported positive net income, driven by growth in digital content and online marketing services. Cloud Music's subscription-based memberships accelerated, and the company expanded its music library through licensing agreements.
Strategic partnerships with Western game developers and renewed agreements with Blizzard Entertainment are set to bring popular titles to China. NetEase will continue its capital return program, including repurchases and dividends, at its own pace. Company Outlook New titles War Wings Mod and Once Human are in the pipeline.
The company is expanding its gaming portfolio with strategic partnerships, like those with Microsoft (NASDAQ: MSFT ) Gaming. No specific details on the game pipeline beyond 202.