NetEase shares fell more than 5% in U.S. premarket trading Thursday after the Chinese gaming and media company reported second-quarter earnings well below analyst expectations, while revenue topped estimates. The company reported second-quarter earnings per share of RMB12.02, missing the analyst estimate of RMB15.54. Revenue rose 7.9% year-over-year to RMB30.11 billion, ahead of the RMB29.48 billion consensus estimate. Games and related value-added services, NetEase's core business, generated net revenue of RMB25.0 billion, up 9.7% year-over-year. Youdao net revenue rose 3.5% to RMB1.5 billion, while NetEase Cloud Music net revenue was relatively stable at RMB2.0 billion and revenue from innovative businesses and other operations fell 3.5% to RMB1.6 billion. Total operating expenses rose to RMB9.1 billion, up from RMB8.6 billion in the prior quarter and RMB9.0 billion a year earlier, with the company attributing the sequential increase to higher marketing, staff-related and research and development spending.
NetEase IncQ2 EPS missed estimates, operating expenses rose
NETEASE CLOUD MUSIC INCNetEase Cloud Music revenue stable but parent's earnings miss drags sentiment
Youdao Inc
