NetEase Full Year 2024 Earnings: EPS Beats Expectations

NetEase (HKG:9999) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥105.3b (up 1.8% from FY 2023).
• Net income: CN¥29.7b (up 1.0% from FY 2023).
• Profit margin: 28% (in line with FY 2023).
• EPS: CN¥9.28 (up from CN¥9.15 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

NetEase EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.5%.

The primary driver behind last 12 months revenue was the Games and Related Value-Added Services segment contributing a total revenue of CN¥83.6b (79% of total revenue). The largest operating expense was Research & Development (R&D) costs, amounting to CN¥17.5b (48% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥113.6m. Explore how 9999's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Entertainment industry in Hong Kong.

Performance of the Hong Kong Entertainment industry.

The company's shares are down 3.2% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We have a graphic representation of NetEase's balance sheet and an in-depth analysis of the company's financial position.

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