BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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NetEase Reports Strong Second Quarter 2024 Financial Performance
NetEase, Inc. (NASDAQ: NTES and HKEX: 9999), a leading provider of internet and game services, has released its unaudited financial results for the second quarter ending June 30, 2024. The company has shown solid growth across multiple sectors, reflecting its strategic focus on innovation, gaming, and content services.
Q2 2024 Financial Highlights
NetEase's second quarter of 2024 demonstrated consistent revenue growth and profitability:
- Net Revenues: RMB 25.5 billion (US$3.5 billion), up 6.1% year-over-year.
- Games and Related Services: RMB 20.1 billion (US$2.8 billion), a 6.7% increase from Q2 2023.
- Youdao: RMB 1.3 billion (US$181.9 million), a 9.5% increase from Q2 2023.
- Cloud Music: RMB 2.0 billion (US$280.8 million), growing 4.7% year-over-year.
- Gross Profit: RMB 16.0 billion (US$2.2 billion), an 11.6% improvement compared to Q2 2023.
- Net Income: RMB 6.8 billion (US$930.0 million) attributed to shareholders.
- Non-GAAP Net Income: RMB 7.8 billion (US$1.1 billion).
Gaming Success Drives NetEase's Revenue Growth
Launch of New Titles
NetEase continues to captivate the global gaming community with exciting new releases, including:
- Lost Light: A tactical shooter mobile game that topped iOS download charts in China after its June 2024 release.
- Once Human: An open-world survival game that saw over 230,000 peak concurrent users on Steam shortly after launch.
- Naraka: Bladepoint: Its mobile version reached top three on iOS grossing charts and maintained a top position in downloads in China.
Record-Breaking DAUs
Popular titles like Naraka: Bladepoint and Identity V have hit record-high daily active users (DAUs), further cementing NetEase’s position as a global gaming leader.
Collaborations with Global Platforms
NetEase continues to expand its reach by bringing its games to top platforms such as PlayStation, Xbox, and Nintendo Switch. Notable partnerships include:
- Where Winds Meet and Marvel Rivals showcased at PlayStation State of Play and Gamescom.
- Eggy Party announced a global release on Nintendo Switch.
- World of Warcraft's return to China, welcomed enthusiastically by players.
Youdao, Cloud Music, and Innovative Businesses Fuel Additional Growth
NetEase's non-gaming businesses also performed well, particularly in digital content and music services:
Youdao's Continued Expansion
Youdao saw robust growth in its digital content, online marketing, and AI-driven services, achieving a record-high cash flow and significantly narrowing its operational losses.
Cloud Music's Success
Cloud Music continued its trajectory of growth, enhancing its ecosystem, increasing membership subscriptions, and optimizing cost management, which contributed to higher profitability.
Innovative Business Stability
NetEase’s innovative businesses, including Yanxuan, remained stable, with growth driven by diversified offerings and product mix improvements.
Financial Performance Breakdown
Net Revenues by Segment
- Games and Related Services: RMB 20.1 billion, representing 96.1% of this segment’s revenue from online games.
- Mobile Games: Accounted for 76.4% of online game revenues.
- Youdao: RMB 1.3 billion, with strong contributions from online marketing services.
- Cloud Music: RMB 2.0 billion, reflecting growth in membership and service optimizations.
- Innovative Businesses: RMB 2.1 billion, maintaining stability compared to previous quarters.
Gross Profit Margins
NetEase achieved gross profit margins of 70.0% for its games, 48.2% for Youdao, 32.1% for Cloud Music, and 34.0% for innovative businesses, reflecting strategic cost control and favorable product mixes.
Dividend and Share Repurchase Program
Quarterly Dividend Announcement
NetEase declared a dividend of US$0.0870 per share (US$0.4350 per ADS) for the second quarter of 2024, payable on September 17, 2024, for ordinary shareholders and around September 20, 2024, for ADS holders.
Share Repurchase Program
The company’s US$5.0 billion share repurchase program, initiated in January 2023, continues with the repurchase of approximately 11.9 million ADSs worth US$1.1 billion as of June 30, 2024.
Looking Forward: Commitment to Innovation and Global Reach
NetEase’s CEO, William Ding, highlighted the company’s commitment to expanding its global footprint while maintaining a focus on innovation. With a growing portfolio of high-quality games and a dedication to content across sectors like Cloud Music and Youdao, NetEase remains positioned for continued growth in 2024.
Source: NTES
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