NetEase Cloud Music Shows Q3 Revenue Spikes

NetEase Cloud Music has reportedly generated CNY 2.36 billion, around $328.99 million, during their Q3 financial period in 2022 which demonstrates an increase around 22% year-over-year, according to a new report.

Third Quarter 2022 Financial Highlights

• Net revenues were RMB24.4 billion (US$3.4 billion), an increase of 10.1% compared with the third quarter of 2021.

– Games and related value-added services net revenues were RMB18.7 billion (US$2.6 billion), an increase of 9.1% compared with the third quarter of 2021.^[1]

– Youdao net revenues were RMB1.4 billion (US$197.2 million), an increase of 1.1% compared with the third quarter of 2021.

– Cloud Music net revenues were RMB2.4 billion (US$331.4 million), an increase of 22.5% compared with the third quarter of 2021.

– Innovative businesses and others net revenues were RMB2.0 billion (US$276.7 million), an increase of 13.6% compared with the third quarter of 2021.^[1]

• Gross profit was RMB13.7 billion (US$1.9 billion), an increase of 16.4% compared with the third quarter of 2021.
• Total operating expenses were RMB9.0 billion (US$1.3 billion), an increase of 12.0% compared with the third quarter of 2021.
• Net income attributable to the Company’s shareholders was RMB6.7 billion (US$941.8 million). Non-GAAP net income from continuing operations attributable to the Company’s shareholders was RMB7.5 billion (US$1.1 billion).^[2]
• Basic net income per share was US$0.29 (US$1.44 per ADS). Non-GAAP basic net income from continuing operations per share was US$0.32 (US$1.61 per ADS).^[2]

Third Quarter 2022 and Recent Operational Highlights

• Extended the longevity of leading franchise titles including both the Fantasy Westward Journey and Westward Journey Online series, and other hit titles including Identity V and Infinite Lagrange.
• Delivered exciting anniversary content updates for the popular title Naraka: Bladepoint in August, winning wide acclaim among players.
• Diablo^® Immortal™, co-developed by NetEase and Blizzard Entertainment, debuted in Chinese mainland, topping the iOS download chart soon after its launch.
• Advanced pipeline, propelling new games under development including Naraka: Bladepoint mobile game, Justice mobile game and Ghost World Chronicle.
• Continued preparations for the roll-out of Harry Potter: Magic Awakened in international markets, which is now expected to be launched globally in 2023.
• Net revenues of Youdao maintained healthy growth with increased contributions from sales of new services and smart devices.
• Enhanced content and product innovation for Cloud Music, driving solid growth in net revenues and continued margin improvement.