In recent pre-market trading, NetEase (NTES, Financial) saw a drop of over 3.3%, with shares priced at $85.38. The decline comes as research from BOCOM International highlights a deceleration in revenue growth from their leading local mobile games.
According to the report, the overall revenue from major domestic mobile games increased by 2% year-over-year in September, a slowdown compared to the 14% growth in July and 5% in August. This decline is primarily attributed to NetEase's gaming titles such as "Justice Online," which is facing pressure due to a high base effect. Although games like "Naraka: Bladepoint Mobile" and "Identity V" have shown growth, they have only partially offset the drop.
Additionally, NetEase's overseas revenue also encountered a downtrend, falling by 13% or 1 billion RMB, affected by the high revenue base of the game "Harry Potter: Magic Awakened."
