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Chinese gaming and Internet company NetEase ( NTES ) late Wednesday posted solid beats in revenue and earnings for the fourth quarter, as its focus on online games gained strength. The company said that revenue from online games, its biggest segment, more than doubled, while mobile original games drove growth. The company’s “Westward Journey Online” and “Fantasy Westward Journey” came in as the top two games in the Apple ( AAPL ) iOS China app store in the fourth quarter, NetEase said. “We saw year-over-year net revenue increases in the fourth quarter of 103.2% from online games, 68.1% from advertising services and 355.5% from email, e-commerce and others,” NetEase Chief Executive William Ding said in a statement. “Business is thriving across our game and Internet service offerings. In 2015 our advertising services revenues continued to grow.” Ding said the company’s mobile portfolio now consists of more than 80 games. “Mobile games are driving rapid new growth. The steps we have taken over the last year to enhance our mobile capabilities have secured our position in the mobile arena,” he said. NetEase is best known for its desktop PC games and has had a lucrative exclusive license for Activision Blizzard ’s ( ATVI ) “World of Warcraft” in mainland China since 2009. The company also develops its own games, mostly the multiplayer variety played on desktop PCs and mobile devices. Looking to bring its most popular titles to more English speakers, Beijing-based NetEase opened its first U.S. office, in the San Francisco suburb of Redwood Shores, Calif., in February 2015. NetEase is a home-field favorite on China’s gaming scene, ranking a close second to titan Tencent Holdings ( TCEHY ). NetEase said fourth-quarter net revenue jumped 128% in local currency to RMB 7.90 billion ($1.22 billion), above the RMB 7.69 billion analysts polled by Thomson Reuters had forecast. The company said earnings per American depositary receipt were RMB 16.34 ($2.52), up 69% in local currency. Analysts had expected RMB 14.79. NetEase did not provide guidance for the first quarter of 2016. Analysts polled by Thomson Reuters expect net revenue to rise 126% in local currency to RMB 8.27 billion ($1.26 billion). Analysts expect adjusted earnings per share to rise 45% to RMB 13.97 ($2.14). NetEase stock rose 1% on Wednesday to close near 160. NetEase stock is up 43% in the past 12 months and held the No. 3 spot in Wednesday’s midweek update of the IBD 50. Scalper1 News
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