BEIJING-Chinese Internet portal Netease reported a quarterly net profit of US$4,600 on 5 August, becoming the country’s first portal to earn a tiny profit. Netease, as well as its competitors Sohu and Sina, are listed on the Nasdaq stock exchange.
Ted Sun, the acting chief executive officer (CEO) of Netease, told the Wall Street Journal that more than 40 percent of Netease’s revenues were derived from services provided to mobile-phone users, such as downloadable ring tones and technology that lets large groups of people chat with one another. Netease’s average daily short messaging service (SMS) volume rose from 1.7 million messages per day at the beginning of the year to 5.4 million at the end of June.
The company’s total revenue for the second quarter was US$4.6 million, up 60 percent from the previous quarter, and a 600-percent increase from a year ago. Netease’s shares are now trading above US$1 on Nasdaq, easing fears the company could be delisted.
