Chinese gaming company NetEase's Q2 revenue rises 9.4%

NetEase

14/08/2025 09:41

Overview

NetEase Q2 2025 revenue up 9.4% yr/yr to RMB27.9 bln

Net income attributable for Q2 2025 rises to RMB8.6 bln

Non-GAAP net income for Q2 2025 reaches RMB9.5 bln

Outlook

Company focuses on product innovation and global expansion

NetEase to scale original IP for lasting franchises

Company emphasizes deep community engagement and technological foundation

Result Drivers

GAMES GROWTH - Net revenues from games and related services rose 13.7% yr/yr, driven by new launches and existing franchise momentum

CLOUD MUSIC DECLINE - NetEase Cloud Music revenues fell 3.5% yr/yr, attributed to declines in social entertainment services

INNOVATIVE BUSINESS DROP - Revenues from innovative businesses decreased 17.8% yr/yr, primarily due to lower Yanxuan and advertising service revenues

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
RMB 27.89 bln
Q2 Adjusted Net Income
RMB 9.50 bln
Q2 Net Income
RMB 9.09 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for NetEase Inc is HK$226.10, about 4.7% above its August 13 closing price of HK$215.40

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn6Z5yvBa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)