Fantasy journey

11 May 2017 By Robyn Mak Follow @mak_robyn

Sales at NetEase are soaring and shares have almost doubled in a year. It also scored a real coup by bagging the Chinese rights to Minecraft. Yet the $37 bln group still looks cheap next to rivals Tencent and Activision – maybe because of its heavy reliance on a few hit titles.

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Chinese gaming company NetEase on May 10 reported revenue of 13.6 billion yuan ($2 billion) for the quarter ending March 31, an increase of 72.3 percent compared to the same period last year. Earnings increased 59.4 percent to 3.9 billion yuan.

Revenue from mobile games more than doubled to 7.9 billion yuan, the company said.

China's overall gaming market is expected to hit $27.5 billion in sales this year, according to data from Newzoo, with more than half that from mobile games.

Shares of New York-listed NetEase rose 3.6 percent to $289 in after hours trading on May 10.

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