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SINA, NTES, and SOHU Replies |
HenryTo
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Joined: 06 Aug 2004
Posts: 11742
Location: Los Angeles, California
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 Posted: Thu Aug 18, 2011 11:07 am Post subject: |
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Morningstar on NTES' 2Q earnings:
| Quote: | | Strong second-quarter results from NetEase NTES validate our investment thesis that this top online gaming operator will continue to thrive on an impressive lineup of in-house and licensed games in the coming years. We think the stock remains undervalued, trading at a 21% discount to our $57 fair value estimate. Net revenue grew 32% year over year on the back of a 34% increase in the online gaming business, which accounts for 90% of overall revenue. The strength of a number of long-running in-house developed games such as Fantasy Westward Journey, Ghost, and Westward Journey Online II was the key driver in online gaming revenue in the past quarter, as these games continued to draw gamers with new features, upgrades, and improved in-game experiences. Gaming revenue was also boosted by impressive performance of recent releases including Ghost, Tianxia II, and Heroes of Tang Dynasty. This is further evidence of NetEase's strong research and development capabilities, which we believe have enabled the firm to build unique plots and features that set it apart from competition. Advertising revenue rose 16.2% year over year despite a tough comparison last summer as a result of high ad spending surrounding the 2010 World Cup event. As we expected, the e-commerce boom in China has created ample advertising demand for NetEase. Other top ad clients include consumer goods and financial services firms. We think significant upgrades in recent months to the NetEase email services, the most popular in China with 410 million users, together with investments in the portal and microblog businesses also helped drive up site traffic, making NetEase a more appealing advertising platform to clients. Gross margins narrowed 60 basis points from a year ago to 66.5%, mainly due to lower profitability of new game releases. NetEase also spent more in research and game promotion as a percentage of sales compared with the same quarter last year, sending operating margins lower by 120 basis points to 45.4%; however, we believe these are essential investments to defend the firm's leading position in the highly competitive online gaming market. Our full-year forecasts for revenue growth of 25.1% and an operating margin of 43.9% should be attainable. |
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HenryTo
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Joined: 06 Aug 2004
Posts: 11742
Location: Los Angeles, California
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| Posted: Tue Apr 26, 2005 4:18 pm Post subject: NetEase profit up on demand for online games |
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NTES soundly beat revenue estimates and is about in line with earnings estimates. Stock currently up 1.6% in after-hours trading.
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NetEase profit up on demand for online games
Tue Apr 26, 2005 06:10 PM ET
SAN FRANCISCO, April 26 (Reuters) - NetEase.com Inc. (NTES.O: Quote, Profile, Research) , China's second-largest online game company, said on Tuesday its quarterly profit rose 48 percent from a year earlier, propelled by robust demand.
NetEase posted a first-quarter profit of $18.6 million, or 53 cents per American Depositary Share (ADS), compared with its year-ago profit of $12.6 million. Comparable per ADS figures were not immediately available.
Revenue rose 58 percent to $39.6 million from $25.1 million last year.
Three analysts polled by Reuters Estimates had forecast net income of 45 cents to 55 cents per ADS. The company soundly beat revenue estimates by six analysts, ranging from $34.9 million to $36.8 million.
Revenue from online game services more than doubled year-over-year to $31.7 million during the quarter, driven by the popularity of online titles like "Westward Journey Online" and "Fantasy Westward Journey".
Beijing-based NetEase competes with Shanda Interactive Entertainment Ltd. (SNDA.O: Quote, Profile, Research) and Tencent Holdings (0700.HK: Quote, Profile, Research) in China's online gaming sector.
China's online gaming market was worth $37 million (3.1 billion yuan) in 2004, and is expected to grow 39 percent this year.
NetEase was among the first of China's short messaging services (SMS) providers to be affected by a government drive against content such a pornography and spam that began over a year ago.
Like its rivals Sohu.com (SOHU.O: Quote, Profile, Research) and Sina Corp. (SINA.O: Quote, Profile, Research) , NetEase has been trying to reduce its dependence on mobile services by shifting toward other areas like online gaming.
Shares of NetEase finished down $2.08, or almost 4 percent, at $50.10 on Nasdaq, but rebounded slightly to $50.73 in after-hours trade on Inet. (US$1=HK$7.8=8.28 yuan) |
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HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11742
Location: Los Angeles, California
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| Posted: Mon Feb 07, 2005 8:00 pm Post subject: SINA |
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SINA now taking a beating in AH trading today, after meeting estimates but guiding revenues and net income downwards going forward.
October 26th: Opened near $34.25, up 21.5 percent, from its regular session close of $28.19. At that time, Beijing-based Sina reported net income of $14.5 million, or 27 cents a share, compared with $11.7 million, or 21 cents a share, last year.
February 7th, 2005 in AH trading: Closed at $21.43 after meeting estimates:
http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7BD2145253%2D06EC%2D4FF6%2D98E9%2DB46A462AFE62%7D |
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