NetEase Q2 rev up 9.4% YoY to RMB27.9 bln, games revenue rises 13.7%.

• NetEase Q2 2025 revenues up 9.4% YoY to RMB27.9 billion ($3.9 billion) • Games and related services net revenues rise 13.7% YoY to RMB22.8 billion ($3.2 billion) • Youdao revenues increase 7.2% YoY to RMB1.4 billion ($197.9 million) • NetEase Cloud Music revenues fall 3.5% YoY to RMB2.0 billion ($274.8 million) • Innovative businesses and others revenues decline 17.8% YoY to RMB1.7 billion ($237.2 million) • Gross profit reaches RMB18.1 billion ($2.5 billion)

NetEase, Inc. (NASDAQ: NTES and HKEX: 9999) reported its second-quarter 2025 financial results, showcasing a robust performance across its various business segments. The company's total net revenues for the quarter were RMB27.9 billion (US$3.9 billion), representing a 9.4% year-over-year (YoY) increase [1].

The company's games and related services segment saw a significant increase, with net revenues rising 13.7% YoY to RMB22.8 billion (US$3.2 billion). This growth was driven by strong player engagement and new content releases, including the launch of The Lost City of Un'Goro expansion pack for Hearthstone and the announcement of a new China-exclusive World of Warcraft server [1].

Revenues from Youdao, NetEase's online marketing services and learning services, increased by 7.2% YoY to RMB1.4 billion (US$197.9 million). Meanwhile, NetEase Cloud Music revenues declined by 3.5% YoY to RMB2.0 billion (US$274.8 million). The innovative businesses and others segment saw a substantial decline of 17.8% YoY to RMB1.7 billion (US$237.2 million) [1].

Despite the mixed performance in certain segments, NetEase maintained a healthy gross profit of RMB18.1 billion (US$2.5 billion), up 12.5% YoY. Total operating expenses for the quarter were RMB9.0 billion (US$1.3 billion), a decrease of 0.6% YoY. The company's net income attributable to shareholders stood at RMB8.6 billion (US$1.2 billion), with a basic net income per share of US$0.38 (US$1.88 per ADS) [1].

NetEase's Chief Executive Officer, Mr. William Ding, highlighted the company's focus on product innovation and community engagement, stating, "In the second quarter, we grew our player community with thrilling new content that reinforces our position as a creator of high-impact, genre-defining games" [1].

The company's strong financial performance is a testament to its ability to adapt and innovate in the competitive gaming and internet services market. Investors and financial professionals should closely monitor NetEase's future quarters to gauge the impact of its ongoing strategic initiatives and new content releases.

References:
[1] https://finance.yahoo.com/news/netease-announces-second-quarter-2025-083000359.html