WoW operator NetEase sees profits grow 19% in 2009
Q4 revenue jumps 62% as Chinese operating issues are resolved
Chinese World of Warcraft operator NetEase has seen its fiscal 2009 end-year profits grow 19 per cent to RMB 1.9bn ($271.1m) thanks in part to revenues earned in the fourth quarter by WoW now it is successfully up and running.
The company saw revenues for the fiscal year 2009 increase to RMB 3.8bn ($560.1m), up from RMB 3bn ($439.4m) the preceding year.
Revenue for the fourth quarter was RMB 1.3bn ($189m), compared to RMB 879.4m ($128.8m) and RMB 801.7m ($117.4m) for the preceding quarter and the fourth quarter of 2008 respectively.
Gross profit for the quarter was RMB 844.1m ($123.6m), up 32 per cent year-on-year. Profit gains were largely attributed to increased revenue from the company's online games and advertising businesses, however increased operating costs arose from royalties, consultancy fees and an increased staff headcount related to World of Warcraft operations, said the company.
"NetEase concluded 2009 with a strong fourth quarter results amid the gradual recovery from the global economic slowdown," said CEO and director William Ding.
"We are committed to the continued success of World of Warcraft, a game licensed from Blizzard Entertainment, which is evidenced by the highly positive response from players since the game was re-launched in mainland China on September 19, 2009," he added.
The re-launch of World of Warcraft in China after Blizzard switched operators from The9 to NetEase, has been plagued with difficulties relating to the approval rules of China's General Administration of Press and Publication.
It is thought the company was fined for launching the game prior to getting official GAPP approval - an accusation denied by NetEase.
The game and its expansion pack The Burning Crusade were finally given the official go-ahead last month, however it was also announced project chief Li Riqiang would resign from his post.