NetEase Inc. (ADR) (NASDAQ: NTES), one of Chinese leading online game and Internet services providers, released its unaudited fourth quarter financial results on Wednesday after market close. Shares of NetEase dropped down 16% to $134.32 during Thursday traing.
"2015 marked a year of tremendous growth fueled by all-around achievement for our company," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our total net revenues grew 94.7% for the year and 128.2% for the fourth quarter compared to the same quarter of fiscal year 2014, with expanding contributions from each of our three business segments. We saw year-over-year net revenue increases in the fourth quarter of 103.2% from online games, 68.1% from advertising services and 355.5% from e-mail, e-commerce and others."
According to the fourth quarter announcement, net revenue of the fourth quarter represented 19.5% increase to $1.22 billion compared with approximately $1 billion last quarter. Net income attributable to NetEase's shareholders for the fourth quarter totaled $334.1 million, compared to $290 million for the preceding quarter. Diluted earnings per share was $2.20 which increased approximately 47.7% compared with $1.49 last quarter.
The board of directors has approved a dividend of US$0.64 per share which will paid on March 18, 2016 to shareholders who record as March 11, 2016.
Portfolio diversification continues to be key part to NetEase’s growth strategy. In addition to numerous RPG and ARPGs, the company will issue a handful of games spanning other marketable genres. These will include the exciting first person shooter game S7 and ACT games Cut the Soul, The Phantom Soul, as well as MOBA + ACT game.