NetEase, Inc. (NASDAQ:NTES) Q4 2017 Earnings Conference Call - Final Transcript

Nov 15, 2017 • 08:00 pm ET

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NetEase, Inc. (NASDAQ:NTES) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone and welcome to the NetEase Fourth Quarter and Fiscal Year 2017 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brandi Piacente. Please go ahead, ma'am.

Executive
Brandi Piacente

Thank you, operator. Please note the discussion today will contain forward-looking statements relating to future performance of the company and are intended to qualify for the Safe Harbor from liability as established by the US Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the Company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion.

A general discussion of the risk factors that could affect NetEase's business and financial results is included in certain filings of the Company with the Securities and Exchange Commission, including its Annual Report on Form 20-F. The Company does not undertake any obligation to update its forward-looking information except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures, and a reconciliation of GAAP to non-GAAP financial results, please see the 2017 fourth quarter and full year fiscal year financial results news release issued earlier today.

As a reminder, this conference is being recorded. In addition, an Investor Presentation and a webcast replay of this conference call will be available on the NetEase corporate website at ir.netease.com. Joining us today on the call from NetEase Senior Management is William Ding, Chief Executive Officer; Mr. Charles Yang, Chief Financial Officer; and Mr. Hilton Huang, Co-President of NetEase's Games. I'll now turn the call over to Mr. Yang, who will read the prepared remarks on behalf of Mr. Ding.

Executive
Charles Yang

Thank you, Brandi, and thank you everyone for participating in today's call. Before we begin, I'd like to remind everyone again that all percentages are based on Renminbi. With that said, I'm pleased to deliver opening remarks on William's behalf. We are pleased with another year of strong performance with a 42% increase in total net revenues. During the year, we launched a number of popular new titles including two global hit Knives Out and Terminator 2: Judgment Day. These games quickly became the fast performers in their genre. This further strengthens and diversify our high quality game portfolio, and also makes us a meaningful player in the international online game space.

As we continue to advance our international expansion strategy, many of our games have proven to have large, universal appeal. With over 200 million players globally, our Onmyoji is now available in 69 countries. Knives Out was also particularly well received internationally with Google Play Store recommending it in over 10 countries. Similarly, Terminator 2 has been ranked as one of the most popular games on iOS and Google Play platforms across multiple countries including the US market. Also during