NetEase.com, Inc.
Rating: Sector Perform
Price: $46.65
Upside from one-time benefit, lack of ‘WoW’ expense. NetEase reported Q2 revenue and EPS of $126.4 million and $0.53 versus our estimates of $127.5 million and $0.20. The discrepancy versus our expectation was largely due to our expectation for a three-week contribution of World of Warcraft (WoW) revenue and cost in Q2. NetEase did receive a one-time benefit from revenue from dormant user accounts in Q2. Net of this benefit, NetEase online game revenue was RMB 696.6 million, roughly RMB 30 million below our estimate excluding WoW.
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NTES - August 13th, 2009 — 5:03am
Chinese Online Games: Development Cost Trumps Marketing, but Remains Dwarfed by Sales Growth
Last week, we visited several Chinese online game companies. Our conclusions from the trip are as follows.
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GA, NTES, Online Games (China), PWRD, SNDA - June 23rd, 2009 — 4:58am
Event:
Activision Blizzard (ATVI, Outperform) held an analyst event on the first day of E3 (actually a day before the first day)
Conclusion:
Modest positive. Much of the discussion in the four hour event was on familiar trends that were not new to most investors. We do not believe anything extremely actionable came of the event. However there were a few interesting things to ponder for longer-term investors:
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ATVI, Games, NTES - June 2nd, 2009 — 11:24pm
