NetEase (NTES, Financial) released its financial results for the first quarter ending March 31, 2025. The company reported a net revenue of 28.8 billion yuan (approximately $4 billion), marking a 7.4% increase from the same period last year. The net profit attributable to shareholders was 10.3 billion yuan, up from 8.8 billion yuan in the previous quarter and 7.6 billion yuan a year ago. On a non-GAAP basis, net profit was 11.2 billion yuan, compared to 9.7 billion yuan in the previous quarter and 8.5 billion yuan in the prior year.
The gaming and related value-added services segment generated 24 billion yuan (about $3.3 billion) in net revenue, a significant increase from the previous quarter's 21.2 billion yuan and the prior year's 21.5 billion yuan. This growth was primarily driven by higher online gaming income.
NetEase Youdao reported a net revenue of 1.3 billion yuan (around $178.9 million), consistent with the last quarter but down from 1.4 billion yuan a year earlier, due to a decline in learning services revenue as the company focuses on core services with long-term potential.
Cloud music revenue stood at 1.9 billion yuan (approximately $256.1 million), unchanged from the previous quarter but slightly down from 2 billion yuan the previous year, mainly due to reduced revenue from social entertainment services.
Innovative and other business revenue was 1.6 billion yuan (about $223.8 million), down from 2.3 billion yuan in the previous quarter and 2 billion yuan a year ago, largely due to decreased income from Yanxuan, advertising services, and other segments.
