NetEase is finding more success in China’s promising mobile gaming market
NetEase, one of China’s largest gaming and Internet companies, has posted its revenue and earnings report for the fourth quarter of 2015. The report shows that the company has seen exceptional growth, powered mostly by the growing popularity of mobile games. NetEase has been involved in the gaming space for some time, with online gaming being the company’s largest business segment. As the mobile space has grown over the years, the company has delved into mobile gaming, offering consumers access to an assortment of entertaining and, in some cases, addicting games that they can play wherever they are.
Net revenue has increased across the board for NetEase, with the mobile sector powering growth
According to the report, NetEase’s online gaming segment more than doubled in the fourth quarter of 2015. Overall growth, however, was powered by mobile games. The company notes that it saw a 103% year-over-year revenue increase from online games, a 68% increase from advertising services, and a 355% increase from e-commerce and other services during the fourth quarter. Mobile gaming has become one of the most powerful influencers of growth for NetEase, with the company’s mobile portfolio now overflowing with more than 80 games.
Company has established a strong position in the gaming market
Last Year, NetEase began taking steps to improve its position in the mobile gaming space. These efforts have proven successful, and this will allow the company to compete with others in the mobile space more effectively. While NetEase is expected to continue focusing heavily on online gaming, particularly where traditional PC games are concerned, the mobile space may begin to take up more of the company’s focus this year.
NetEase may see more growth during the first quarter of this year
Analysts expect that NetEase’s net revenue for the first quarter of 2016 will grow by 126%, but the company has not yet released any information concerning the most recent quarter. If mobile games continue to prove lucrative for the company, revenue growth will likely be secured. It will, of course, have to ensure that its games are quite attractive to consumers that rely on their smartphones and tablets for entertainment.