Even China isn't immune to the waning global popularity of Activision Blizzard's
This is actually a good thing for NetEase, since it's now able to prove that it can grow just fine with its proprietary releases. The recent success of last year's Tianxia III and Ghost -- along with the continued success of its older Fantasy Westward Journey, Westward Journey Online II, and Heroes of Tang Dynasty -- find the Beijing-based company posting another market-thumping report.
Net revenue climbed 28% to $333.5 million for the online gaming pioneer. Earnings clocked in at $1.09 a share, well ahead of last year's $0.87-a-share showing. Analysts were settling for a profit of $1.02 a share on $317.3 million in net revenue.
There's more to NetEase than just multiplayer fantasy games. NetEase's portal now has 97.6 million users of its micro-blogging platform. It's no Weibo, but it shows that NetEase can still draw a crowd of non-gamers. The company runs China's largest free email service with 450 million registered users, though stateside investors know how hard it is to monetize email accounts.
However, online gaming is still the key driver at NetEase, accounting for 85% of its quarterly revenue.
As an industry bellwether, NetEase's report should calm investors that were spooked by smaller rival Changyou.com
We'll get a clearer picture of the industry when Shanda Games
If this is a game, NetEase is winning.
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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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