NetEase Beats On Bottom Line, Foreign Flows Return

NetEase Q2 Earnings Overview

Game developer NetEase reported Q3 earnings before the open in the US this morning. The company missed on top line but had a strong beat in its bottom line. The company’s results were powered by four new game releases in June, including a Harry Potter franchise game, released globally. The net profit beat was mostly attributed to the payment of fewer royalties due to the termination of certain partnerships with other game developers. This also led to top line revenue coming in below estimates.

Non-GAAP (Adjusted) year-over-year