NetEase posted USD 3.1 billion in revenues and a USD 1.7 billion net profit for the first quarter of 2021, up 20.2% and 17.9% respectively year-on-year, according to its earnings release on Tuesday.
The company’s online education affiliate Youdao took in USD 204.5 million in the first three months of the year, more than doubling its revenues from the same period in 2020. The gross profit margin of the platform reached 57.3%, the highest since its IPO in October 2019.
Revenues of NetEase’s gaming business, which makes up 75% of its total earnings, were up 10.8% in the quarter, “supported by the impressive longevity of our time-honored flagship games, as well as newer titles that broaden and diversify our games portfolio,” said founder and CEO William Ding.
On Monday, NetEase announced that its cloud music service entered a partnership with Sony, effectively ending the dominance of its domestic rival Tencent Music Entertainment. NetEase’s Nasdaq-listed stock rose 3.5% on Tuesday, while Youdao was up more than 9%.
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.