Chinese games giant NetEase ¥81.6 billion ($11.5bn) from its games division in 2023, according to its latest financials.
This marked a 9.4% increase from 2022 when games generated ¥74.6bn ($10.4bn). Gross profit for the division rose by 18.9% year-over-year to ¥55.5bn ($7.8bn).
Overall, NetEase reported overall revenue across its business of ¥103.5bn ($14.6bn). Gross profit rose 19.5% from ¥52.8 billion ($8.8bn) in 2022 to ¥63.1bn ($8.9bn).
Year-on-year success
Mobile game earnings accounted for just over 75% of NetEase’s revenue in 2023, an increase from 67% the year prior. This growth has been attributed to successful revenue generation by games like Justice and Eggy Party, with the latter surpassing 500 million players in less than two years.
In Q4, the company generated ¥16.8bn ($2.4bn) in gross profit, up 27% Y/Y. Profits at its games arm rose by 9.6% year-on-year to ¥20.9bn ($2.9bn) during the quarter.
“2023 proved to be another landmark year for NetEase Games with continuous cross-category innovations that expand and diversify our robust game portfolio,” said NetEase CEO and director William Ding.
“The success of games like Eggy Party and our heralded new titles, such as Racing Master and Dunk City Dynasty, highlights our ability to bring players dynamic and original products in multiple genres.
“At the same time, we have maintained a strategic advantage with our MMO roots, propelling Justice mobile game to transcend the boundaries of conventional MMO gaming.
“Alongside our business’s momentum, we have assumed increasing social responsibility. By integrating a ‘Minors Mode’ across our domestic game lineup, we have strengthened our existing anti-addiction system and continue to steer the gaming ecosystem toward a healthier trajectory with innovative products and technology.”
