NetEase, one of China’s biggest mobile game developers, has released its financial report for Q1 2023. In the report, it states that the company generated 25 billion yuan ($3.6 billion) in revenue, a 6.3% year-on-year increase from last year’s 23.6 billion yuan ($3.3 billion).
Games and Related Services Keep NetEase on Top
The report highlights that games and related value-added services were the primary drivers of the company’s growth. This sector earned 20.1 billion yuan ($2.9 billion), a 7.6% increase from the 18.6 billion yuan ($2.9 billion) generated in Q1 2022.
According to William Ding, the CEO and director of NetEase, the company is excited about future prospects. “We are off to a good start in 2023 with a stellar performance from our games portfolio, which drove our total net revenues to RMB25.0 billion in the first quarter, up more than 6% year-over-year. Our primary focus remains on developing games that resonate with diverse demographics, and we’re committed to delivering even more exceptional, high-quality games to our global player base.”
Mobile Continues to be NetEase’s Biggest Money-Maker
Once again, the bulk of NetEase’s gaming revenue came from its mobile interests, which accounted for 14.5 billion yuan ($2 billion) — a full 72.3% of the total revenue generated from the operation of online games. This is up from 66.4% in Q4 2022 and 66.9% in Q1 2022.
NetEase’s Recent Success Despite Struggles
Despite the continuing success, NetEase faced some challenges over the past year. It struggled to adapt to volatile market conditions, regulatory changes, and had to deal with the high-profile break-up of its long-standing licensing agreement with Blizzard. Nevertheless, NetEase remains one of the biggest players in mobile gaming, and it recently introduced its newest multi-platform studio, Bad Brain, to maximize its revenue streams. Pocket Gamer previously listed NetEase as the top mobile game maker of 2022.