SAN Beijing time on May 17 morning, NetEase (Nasdaq: NTES) today announced that the company ended the first quarter to March 31, 2012 unaudited financial results. The report shows that the NetEase first quarter of the total income of 2 billion yuan ($ 318 million) the previous quarter and same period last year were 2.1 billion yuan and 1.5 billion yuan; net profit of 942 million yuan ($ 150 million) on a quarter of 899 million yuan, an increase of 27.8% compared to the same period last year 737 million yuan.
Netease CEO and director Ding said: Ghost Story The strategy of the user experience in the field of online games with good results, innovative content, by the players praise and thanks to the innovation of the game mode, beta. launch of the battle song. the third quarter, we plan to conduct technical tests of the game: 3D the ARPG games: cut the soul : the world’s fourth piece of information: the mystery of the 13.1% due to seasonal factors, advertising revenues were down 48.5%, we expect that advertising revenue will rebound in the second quarter of 2012 and the second half of our continued commitment to content creation, CASINO against the majority, to enhance cross-mobile platform integration of services in order to take full advantage of the upcoming London 2012 Olympics business opportunities, we have to work together with content providers who provide a more comprehensive, accurate and depth of information services, portals and mobile Internet users. > Ding said: quarter, the number of microblogging users reached 120 million, growth of 24.0 percent of China’s leading free e-mail provider, through the establishment and update of the mobile interface, continuous optimization services to improve the user experience, the mail service is impressive. ended 2012 on March 31, our mailbox registered users reached 480 million, growth of 6.7% In addition, NetEase E-mail service operations three years ago, the company’s mailbox number of users and the number of paid subscribers is growing rapidly in the first quarter of 2012, we has become one of China’s leading enterprise mail service provider. We look forward to greater achievements in 2012, products and services. income of 2 billion yuan ($ 318 million), the previous quarter and same period last year were 2.1 billion yuan and 1.5 billion yuan.
online gaming service in 2012 first quarter revenue of 1.8 billion yuan ($ 289 million), the previous quarter and same period last year were 1.8 billion yuan and 1.4 billion yuan.
2012
advertising service revenue in the first quarter of 143 million yuan (2,278 million), the previous quarter and same period last year were 278 million yuan and 127 million yuan.
the mailbox
in 2012 first quarter, wireless value-added services and other business income of 3,963 yuan ($ 6,290,000), the previous quarter and same period last year were 3,725 million yuan, and 2,568 million yuan .
gross profit
in 2012 first quarter gross profit of 1.3 billion yuan ($ 211 million) the previous quarter and same period last year were 1.5 billion yuan and 985 million yuan RMB. The gross profit chain reduction mainly due to seasonal changes in advertising revenue.
gross profit grew mainly due to the company various types of independent research and development of the game revenue growth, but the agent
The overall cost of a year-on-year increase was primarily due to the first quarter of 2012 increased labor costs and increased server costs.
gross profit (loss) rate
the
online games in 2012 in the first quarter gross margin was 73.0 percent the previous quarter and same period last year were 72.6% and 70.0%. Advertising services gross margin was 19.8 percent in the first quarter of 2012, the previous quarter and same period last year was 54.5% and 33.4%, respectively.
gross margin decreased mainly due to advertising revenue described above. The gross margin decreased mainly due to the increase in the cost of labor costs, as well as content purchase.
in 2012 first quarter, E-mail, wireless value-added services and other business gross loss rate of 18.0% the previous quarter, gross margin was 2.2 percent last year over the same period gross loss rate of 21.6%. The sequential change was mainly due to the increase in the cost of customer service and technical support.
operating expenses
in 2012 first quarter operating expenses of 356 million yuan (5,649 million), the previous quarter and same period last year were 529 million yuan and 292 million yuan RMB. The main reason for reduced operating costs of the chain is less in the first quarter of 2012, sales and marketing activities. In addition, the fourth quarter of 2011, provision for proxy since Blizzard Entertainment StarCraft II ® impairment of agency fees to prepare the $ 50.3 million yuan. The operating expenses grew mainly due to increased labor costs related to R & D and product development costs.
net profit
in 2012 first quarter net profit of 942 million yuan ($ 150 million) the previous quarter and same period last year were 899 million yuan and 737 million yuan.
in 2012 first quarter, the company recorded a net exchange gain of $ 17.6 million yuan ($ 2,790,000), the previous quarter, net foreign exchange losses of 3,639 million yuan to 252.7 million last year, compared to net foreign exchange gains yuan.
qoq and yoy change of the net foreign exchange gains and losses are mainly due to cut-off and converted to the euro on March 31, 2012 bank balance with the euro against the RMB exchange rate fluctuations.
per share for the first quarter in 2012 (American Depositary Receipts), net profit of $ 1.14 (basic and diluted). The previous quarter to $ 1.09 (basic and diluted) a year earlier to $ 0.90 (basic) and $ 0.89 (diluted).
income tax
2012 first quarter income tax expense of 163 million yuan (2,589 million) the previous quarter and same period last year to 123 million yuan and 3,721 yuan respectively. RMB. 2012 first quarter effective tax rate of 14.9% the previous quarter and same period last year was 11.8% and 4.8% respectively.
Group affiliated subsidiaries in 2011 continued by the high-tech enterprise qualification, making the 2011-2013 year can still enjoy the preferential enterprise income tax rate of 15%, the Inland Revenue Department will be conducted on the qualification annual audit.
the effective tax rate of chain growth was mainly attributable to: certain subsidiaries because it has software Qualification enjoy the corporate income tax exemption expires in 2011, the applicable tax rate from 0% to 12.5%. The actual tax rate grew mainly due to: the first quarter of 2011, certain of its subsidiaries to obtain the qualification of key software enterprises confirmed 4,710 million yuan of tax incentives.
other information
on March 31, 2012, the Group’s cash, cash equivalents and term deposits for a total of 13.1 billion yuan ($ 2.1 billion) as of 31 December 2011 date of 11.9 billion yuan. Business activities of the first quarter of 2012, net cash inflow of about 1.3 billion yuan ($ 212 million), the previous quarter and same period last year were 1.2 billion yuan and 969 million yuan.
conference call
the
NetEase’s management team will be 2012 U.S. Eastern time on Wednesday, May 16, 21:00 (Beijing / Hong Kong time, 2012 May 17 Thursday morning a conference call at 9:00), NetEase management in a conference call to discuss the company’s quarterly financial and operational performance and answer questions.
Interested parties may participate in the beginning of the meeting 10-15 minutes prior to call 1-877-941-2068 (International :1-480-629-9712), conference call replay will be retained until the United States EST 2012 January 7, telephone number 1-800-406-7325 (International :1-303-590-3030), the password is: 4533318 #.
at the same time the NetEase company website investor relations section http://ir.netease.com will save the live of the live webcast of the earnings release for 12 months.
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