NetEase Q4 Earnings: Revenue Misses Estimates at CNY27.14B, EPS Falls to $1.60 (Est. $1.73) as Gaming Boosts Profits and Cloud Music Returns to Profitability

NetEase Q4 Earnings: Revenue Misses Estimates at CNY27.14B, EPS Falls to $1.60 (Est. $1.73) as Gaming Boosts Profits and Cloud Music Returns to Profitability

– NetEase’s Q4 adjusted EPS falls short of estimates at $1.60 (Est. $1.73).

– Q4 Revenue stands at CNY27.14B, missing the estimated CNY28.2B.

– Non-GAAP Net Profit sees a substantial 54% YoY increase, reaching CNY7.4B.

– FY’23 Revenue exceeds expectations at CNY103.5B (Est. CNY96.5B).

Additional Highlights:
– Board approves a Q4 dividend of $1.07985/ADS, up from $0.4950/ADS in Q3.

– Profits surge, driven by strong gaming sales, particularly from titles like “Egg Party” and the “Justice” mobile game.

– Gaming gross profit margin improves to 69.5%.

– Cloud Music returns to profit, recording 734.2 million yuan compared to a 221.5 million yuan loss in 2022.

Other Q4 Metrics:
– Gaming Revenue increases by 9.6% YoY, reaching CNY20.9B.

– Gross Profit Margin for the Gaming Sector stands at 69.5%.

– Net Profit experiences a significant 67% YoY growth, totaling CNY6.6B.

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