NetEase executives interpret the third quarter earnings report: they want the cost of music content to be reduced by one

新浪科技 ·  11/21/2019 11:43

Sina Science and Technology News on the morning of November 21, Beijing timeNetEaseReleased todayThird quarter financial reportAccording to the financial report, NetEase, Inc's net income in the third quarter was 14.64 billion yuan, and the market expectation was 17.412 billion yuan, compared with 16.855 billion yuan in the same period last year. The continuing operating net income attributable to the shareholders of NetEase, Inc was 12.885 billion yuan; the non-GAAP continuing operating net income belonging to the shareholders of the company was 4.726 billion yuan ($661.2 million).

After the release of the results, executives such as NetEase, Inc CEO Ding Lei and CFO Yang Zhaoyi attended the subsequent earnings call to interpret the main points of the results and answer analysts' questions.

The following is the main content of the question and answer session of the analyst in this conference call:

CICC analyst Natalie Wu: about the company's upcoming "Dream Journey to the West 3D" game, what are NetEase, Inc's expectations for this product? Will this new game have an impact on the revenue of existing "Fantasy Journey to the West" mobile games? Will "Dream Journey to the West 3D" become the company's next blockbuster?

Ding Lei:This product will be launched in early December and will be available inAppleIt was first released on the platform of The 3D version of Fantasy Journey to the West is planned and developed on the basis of accumulated experience in the development and operation of PC and mobile games in the past. We place great hopes on this product. We believe that this product has many innovations that can attract players of "Fantasy Journey to the West". I hope you can like it.

Morgan Stanley analyst Alex Poon: the company mentioned that there will be innovation and commercialization plans in the music business. Can you describe it in detail? What are the company's plans for operating cost control in the coming year? Can the gross profit margin become positive next year? In addition, when will this part of the business be available? The second question is that the company has invested in some overseas companies. Will NetEase, Inc release more games overseas next year?

Ding Lei:The cost of music content should not increase particularly drastically, to be exact, we hope to be able to reduce it. NetEase, Inc hopes to enhance homemade content, including adding user-made content to the cloud music platform. In terms of traffic realization, we are very active in trying and developing various revenue models, in addition to the previous advertising members, there are live broadcasts now, and in the future we will have social types of sources of income as I mentioned last time. The management has full confidence in the realization of cloud music, as well as the content of cloud music. We are very optimistic about the future development of China's music market.

In terms of games, the overseas game studios invested have very good R & D foundation and experience, which NetEase, Inc can learn from. Of course, our own development over the past 20 years has also accumulated a lot of experience, and we can work with these studios to create quality works and open up overseas markets. In terms of overseas market development, we are constantly trying, and we have achieved good results in Japan. I hope we can also achieve excellent results in European and American markets in the future. (Tian Heng)

Constantly updating.

The translation is provided by third-party software.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment