NetEase.com Q1 Profit Falls On Higher Tax Charges

Posted on Wednesday, May 21, 2008 8:59 PM
(RTTNews) - Chinese online gaming company NetEase.com, Inc. (NTES) on Wednesday, reported net income for the first quarter that declined from last year due to an increase in tax charges. The Beijing, China-based company reported net earnings for the first quarter of RMB269.4 million or US$38.4 million, down from RMB301.5 million or US$43.0 million in the year-ago quarter. The company attributed the lower earnings to an increase in tax charges reported for the 2008 first quarter. NetEase reported earnings per American depositary share of US$0.30 for the first quarter of 2008, lower than US$0.32 for the same quarter last year. On average, nine analysts polled by First Call/Thomson Financial expected the company to earn US$0.31 per share for the quarter. Total revenues for the quarter increased to RMB651.9 million or US$93.0 million from RMB554.6 million or US$79.1 million in the prior-year quarter, beating analysts consensus revenue estimate of US$82.26 million. Gross profit for the first quarter climbed to RMB532.0 million or US$75.9 million from RMB430.1 million or US$61.3 million in the comparable quarter of 2007. The year-over-year increase in gross profit was mainly due to higher revenues from the online game and advertising businesses. NTES closed Wednesday's regular trading session at $24.05, down $0.09 or 0.37%. Further, in the after-hour trade, the stock lost $2.35 or 9.77%, and traded at $21.70. For comments and feedback: contact editorial@rttnews.com
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