Earnings: NetEase’s Wireless Revenues Decrease on Competitive Pressure

NetEase, one of the big Chinese Net portal players, reported a sharp rise in Q2 profit on a boom in its core online gaming business. But its wireless services continued to face intense competition, causing revenue from that part of the business to decrease slightly to $2.4 million in Q2. Such revenue, once one of the company’s most important streams, now accounts for just 5 percent of the total. “This decrease was mainly due to … intense competition and the overall decrease in popularity of such services in the wireless market in China,” the company said in a statement. The company, like competitors, has been hit by Chinese govt crackdown on mobile spam.
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