NetEase (NTES; 9999) released its Q3 2024 financial results, reporting a net revenue of RMB 26.2 billion, a 3.9% year-over-year decrease. Net income attributable to shareholders was RMB 6.5 billion, compared to RMB 6.8 billion in the previous quarter and RMB 7.8 billion a year ago. Excluding GAAP adjustments, net income was RMB 7.5 billion, down from RMB 7.8 billion in the prior quarter and RMB 8.6 billion the previous year.
The company reported a quarterly net revenue of RMB 26.2 billion (approximately USD 3.7 billion), an increase from RMB 25.5 billion in the prior quarter but a decline from RMB 27.3 billion in the same period last year. Revenue from gaming and related value-added services reached RMB 20.9 billion (approximately USD 3 billion), up from RMB 20.1 billion in the previous quarter but down from RMB 21.8 billion year-over-year. Online gaming operations accounted for 96.8% of these revenues, reflecting a slight increase from 96.1% in the previous quarter and 93.7% a year earlier. Mobile games comprised 70.8% of online gaming revenue, a decrease from 76.4% in the last quarter and 77.6% the previous year.
NetEase Youdao generated RMB 1.6 billion (approximately USD 224.1 million) in revenue, an improvement from RMB 1.3 billion in the last quarter and RMB 1.5 billion year-over-year. Cloud music revenue remained constant at RMB 2 billion (approximately USD 284.9 million). Revenue from innovative and other businesses was RMB 1.8 billion (approximately USD 252.8 million), down from RMB 2.1 billion in the previous quarter and RMB 2 billion in the same period last year.
As of September 30, 2024, NetEase's cash and cash equivalents, term deposits, restricted cash, and short-term investments totaled RMB 120 billion (approximately USD 17.1 billion), up from RMB 110.9 billion at the end of 2023. The company generated RMB 10.6 billion (approximately USD 1.5 billion) in net cash from operating activities during Q3 2024, compared to RMB 6.5 billion in the previous quarter and RMB 9.8 billion a year ago.
NetEase's board approved a quarterly dividend of USD 0.087 per share (USD 0.435 per ADS), with payments expected in December 2024. The company previously paid the same dividend amount in September 2024 for Q2.
On November 17, 2022, NetEase's board authorized a USD 5 billion stock repurchase program. This program commenced on January 10, 2023, and will be in effect for up to 36 months. By September 30, 2024, NetEase had repurchased approximately 18.2 million ADS for a total of USD 1.6 billion.
