NetEase’s Q2 2025 Financial Report Shines

NetEase’s Q2 2024 financial report shines: Game revenue reaches 22.8 billion yuan, with multiple flagship products driving growth

On August 14th, NetEase Inc. (NASDAQ: NTES; HKEX: 9999) released its financial report for the second quarter of 2024. The report shows that NetEase’s net revenue for the second quarter reached 32.8 billion yuan, a year-on-year increase of 12%. Among them, game and related value-added service revenue was 22.8 billion yuan, accounting for nearly 70% of the total revenue, continuing to be the core driver of the company’s performance.
Strong performance of flagship games, classic IPs and new products jointly drive growth
NetEase’s stable growth in the game business is attributed to the continuous active performance of multiple flagship games and the excellent market response of new games. The following games made particularly significant contributions in this quarter:
“Fantasy Westward Journey” series
As NetEase’s “evergreen” IP, the mobile and PC versions of “Fantasy Westward Journey” maintained stable revenue streams. The launch of summer events and new expansion packs further increased player activity and willingness to pay.
“Sword Justice” mobile game
Since its launch in 2023, “Sword Justice” mobile game has consistently ranked high on the bestseller list due to its high-quality graphics and open-world gameplay. The release of the “Return to the Eastern Sea” expansion pack and the implementation of e-sports strategies in Q2 2024 pushed its revenue to new heights.
“Egg Party”
NetEase’s casual competitive mobile game “Egg Party” has maintained high popularity among young users through continuous UGC (user-generated content) ecosystem construction and cross-industry collaborations (such as partnerships with popular animations and brands), becoming a benchmark product in the casual game sector for NetEase.
“Naraka: Bladepoint” mobile game
Launched in 2024, “Naraka: Bladepoint” mobile game has continued the hardcore action gameplay of the PC version and optimized the operation experience for mobile devices, quickly becoming a global hit competitive mobile game, especially in Southeast Asia and the European and American markets.
“Harry Potter: Magic Awakenings” international version
NetEase’s collaboration with Warner Bros. on “Harry Potter: Magic Awakenings” has continued to perform well in the European, American, Japanese and Korean markets. The IP influence and card strategy gameplay have kept it consistently in the top 10 of the bestseller lists in many regions.
Future plans: Globalization + AI technology empowerment
NetEase CEO Ding Lei stated in the earnings call that the company will continue to advance its “globalization strategy”, focusing on the European, American, Southeast Asian and emerging markets, while increasing investment in AI technology to optimize game development, operation and player experience.
In addition, NetEase revealed that several new games are in the pipeline, including:
– Dark-themed ARPG “Code Name: Blood Drop” (co-developed with Blizzard)
– Open-world martial arts new work “Yanyun Shiliusheng” (expected to launch in 2025)
– Sci-fi-themed “Project: M”, etc.
Analyst views
Analysts from market research firm Niko Partners commented: “NetEase’s diversified layout in MMO, competitive and casual games has enabled it to maintain resilience in the highly competitive market. The global success of ‘Sword Justice’ mobile game and ‘Naraka: Bladepoint’ mobile game marks that NetEase has the ability to compete with international giants.” Conclusion
NetEase Games once again delivered an impressive performance report in Q2 2024. The combination of the long-term operation capabilities of classic IPs and the explosive power of new products has ensured the company’s leading position in the industry. In the future, with the acceleration of globalization and the deepening of technological innovation, NetEase Games is expected to further expand its market share.
Data source: NetEase’s Q2 2024 financial report
For more information: Please follow the official website and announcements of NetEase Investor Relations.