UPDATE: NetEase Posts Higher Q2 Profit

NetEase

reported around 10% rise in its second-quarter profit. The company's quarterly profit surged to 1.2 billion yuan ($193.8 million), or 9.18 yuan ($1.48) per ADS, versus a year-ago profit of 1.1 billion yuan, or 8.41 yuan ($1.37) per ADS. Its pre-tax revenue climbed 22%, to 2.95 billion yuan ($475.8 million). However, analysts were projecting a profit of $1.46 per ADS on revenue of $426.64 million. NetEase's revenue from online games gained 13%, while advertising revenue increased 43% in the quarter. Its revenue from e-mail, e-commerce and others segment jumped to 226.3 million yuan ($36.5 million). Its operating expenses increased 32% to 823.7 million yuan ($132.8 million). The company's board also approved a Q2 dividend of 37 cents an ADS. "The advancements we are making across our online and mobile games, advertising services and e-commerce businesses support our dynamic growth," said Mr. William Ding, Chief Executive Officer and Director of NetEase.” NetEase shares rose 0.05% to $84.10 in after-hours trading.