On November 14th, NetEase released its financial report for the third quarter of 2024. According to the financial report, NetEase's Q3 net income was 26.2 billion yuan, and the net profit attributable to the company's shareholders under non GAAP accounting standards was 7.5 billion yuan. During the quarter, the R&D investment was 4.4 billion yuan, with a R&D investment intensity of 16.9%; Deferred income was 15.5 billion yuan, an increase of 14% compared to the previous period. From January 10, 2023 to September 30, 2024, the company repurchased approximately $1.6 billion in American depositary shares, including $500 million in shares repurchased in Q3 2024, a 98% increase from the previous quarter, releasing a positive signal and further boosting market confidence.
In the third quarter, NetEase's net revenue from games and related value-added services was 20.9 billion yuan, an increase of 4% compared to the previous quarter. Game revenue was 20.2 billion yuan, a month on month increase of 5%, while PC game revenue increased by 29% year-on-year and 30% month on month. Long term IPs such as "Journey to the West 2" and "Identity V" have reached new highs, while "World of Warcraft" and "Hearthstone" have returned to the Chinese market and broken records, with daily active users increasing by over 50% and 150% respectively compared to before the server was discontinued.
NetEase Youdao had a net income of 1.6 billion yuan, significantly improving its profitability. Its operating profit turned from loss to profit year-on-year, marking the first time in Youdao's history that it achieved a third quarter profit, and its quarterly operating profit also set a new historical high. NetEase Cloud Music has a net revenue of 2 billion yuan, further expanding its subscription membership scale and driving sustained and healthy growth in online music revenue. At the same time, in addition to collaborating with Kakao Entertainment and JYP Entertainment, we have also reached a copyright partnership with CJ ENM to enrich the K-POP music library.
In addition, the net revenue from innovation and other businesses was 1.8 billion yuan. NetEase Yanxuan focuses on branding strategy, continues to implement the policy of category focus, explosive product drive, and point to area promotion, and strives for omnichannel sales. The membership scale of Yanxuan Pro has increased by 56% year-on-year, and the sales of core categories such as pets and home cleaning have achieved double-digit growth year-on-year; NetEase Media improves content quality through a big language model, insisting on integrating AI technology into major events and multidimensional projects. The output rate of phenomenon level popular and high-quality products exceeds the same period by 30%, with a year-on-year increase of 34% in new creators and a year-on-year increase of 27.49% in post interaction volume; NetEase Shufan has officially reached a cooperation agreement with Guangzhou Public Transport Group Co., Ltd. to enhance the public transportation experience of over 18 million citizens in Guangzhou through big data technology.