NetEase, Inc. (NASDAQ:NTES) Q4 2015 Earnings Conference Call - Final Transcript

Feb 25, 2016 • 10:00 am ET


NetEase, Inc. (NASDAQ:NTES) Q4 2015 Earnings Conference Call - Final Transcript


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Q & A

[Operator Instructions] We'll take our first question from Fan Liu with Goldman Sachs.

Fan Liu

Hi, management. Thanks for taking my questions. So I have two questions. Number one is about the mobile games. So we witnessed actually some volatility of growth rate of FWJ and Westward Journey recently. Does the management think the competition landscape is getting more challenging or would you mind to comment on the user engagement and also monetization for both these two top titles?

Also for the new games pipeline, what kind of -- which titles do you think may be the next blockbuster for NetEase? And what would be your expectation for Blizzard games agreements in the coming year? Yeah. Thank you.

Onward Choi

Okay. So thank you for your questions.

So with regard to your first question about our view on our mobile games, especially on the Fantasy Westward Journey and Westward Journey Online, we believe that for now the competition landscape in this area is getting very competitive. But having said that, we still believe that for companies that could actually deliver some high-quality products and care about the user experiences, then we would be able to deliver something very meaningful and also very supportive from the player communities.

And insofar as those two games are concerned, we have been seeing that they have been performing very well in the past years since their first launch in the market. And we have been seeing that the user engagement has been very good. And we are also seeing that there has been a good growth that we have experienced in the past quarters as well. And we are also looking forward that those games will upkeep their current performances in the foreseeable future.

And with regard to your second question about the new games pipelines and whether or not there will be any particular blockbuster games and things like that, basically, we have been upkeep a very good momentum of rolling out the games, especially the mobile games, to the market. And if you look back in the past quarter, which is the fourth quarter of 2015, we have come up to 80 plus mobile games in the market. That's compared to about 50 plus in the third quarter of 2015. And you will see that we have upkeep these visions and also the passions to roll out those interesting games to the market.

And just as what we highlighted earlier in the earnings sharing, there will also be quite a lot of some other games coming up to the market in 2016, including some games like the Raven, Fantasy Westward Journey Warriors and the mobile version of our New Ghost. And we are also seeing that those games will have a good traction from the market as well. And insofar as your third question about our expectations on the Blizzard games, we believe that in 2016 there will also be some new games that we are looking forward from it and one of those will be the