On that day, Netease released its first quarter results as of March 31, 2020. In the first quarter of this year, Neteases revenue was 17.06 billion yuan, an increase of 18.3% year-on-year. The net profit from continuing operations of Neteases shareholders was 3.55 billion yuan, compared with 2.73 billion yuan in the same period last year.
Based on non-U.S. GAAP, the net profit from continuing operations attributable to Neteases shareholders in the first quarter of 2020 was 4.21 billion yuan, compared with 3.66 billion yuan in the previous quarter and 3.35 billion yuan in the same period last year.
In the trading session before the financial report, Neteases share price closed at $395.69, up 3.62%, a record high in the session, with a market value of about $51.1 billion.
Neteases online game service revenue in the first quarter was 13.5 billion yuan, up 14.1% year on year. Online game service gross profit increased month on month and year-on-year, mainly due to the increase of self-developed game revenue, such as dream westward 3D version, dream westward computer version and big talk westward 2 mobile game, as well as the increase of agent game revenue.
Youdaos net income in online education sector was 540 million yuan, up 139.8% year on year. The growth of Youdaos gross profit on a month on month basis and on a year-on-year basis is mainly due to the growth of net income from learning services and products, the enhancement of scale effect and the further optimization of teachers salary structure, Caibao said.
In the financial report, Ding Lei, CEO and director of Netease, said, the net income of online games in this quarter reached 13.5 billion yuan, and flagship products and other new games performed well. This is due to our increasingly rich and diversified game categories and the strong vitality of our game business. At the same time, Netease has made good achievements in Japan and other overseas markets, further strengthening our confidence in the implementation of the international strategy.
Other core businesses are also developing steadily. Youdao and Netease cloud music are moving towards their 2020 goals in an orderly way. Ding Lei said.