By Yi Wei Wong


Chinese video game developer NetEase Inc. said its net profit fell 31% on year in the fourth quarter, as higher operating costs offset a modest rise in revenue.

NetEase said Thursday that its fourth-quarter net profit fell to 3.95 billion Chinese yuan ($573.1 million), compared with CNY5.69 billion in the same period a year earlier. Revenue rose to CNY25.35 billion, compared with CNY24.37 billion.

Operating expenses rose to CNY8.81 billion, compared with CNY8.31 billion a year earlier, mainly due to higher staff-related costs and marketing expenditures.

"We experienced solid growth in 2022. Primarily as a result of the ongoing popularity of our leading games and the expansion of our range of products and services, we ended the year with total net revenues reaching CNY25.4 billion in the fourth quarter," NetEase Chief Executive William Ding said.

NetEase achieved its first-ever quarterly income from operations for its search engine Youdao, despite a challenging macroeconomic environment, it said.


Write to Yi Wei Wong at yiwei.wong@wsj.com


(END) Dow Jones Newswires

02-23-23 0420ET