NetEase Climbs 10% to Record High

NetEase American depositary shares rose in Thursday’s afternoon trade after the Internet-technology company in China late Wednesday reported Q1 adjusted earnings and revenue above analysts’ expectations and maintained its quarterly dividend rate. NTES is up 10% at $143.01, and earlier hit $143.93 – an all time high.

Net income attributable to the company’s shareholders rose to 1.26 billion yuan ($204.0 million), or RMB9.60 ($1.55) per diluted ADS, from RMB1.12 billion, or RMB8.60 per diluted ADS, a year earlier. On a non-GAAP basis, the earnings per ADS totaled RMB10.81 ($1.74) in the latest quarter, up from RMB9.04 in the year-earlier period and well above the $1.50 per share expected on average by analysts polled by Capital IQ.

Total net revenue rose 55% to RMB3.66 billion ($590.5 million), topping analysts’ mean estimate of $524.9 million.

“The introduction of new games and content for our community of online PC-client and mobile users drove growth across our business during the first quarter of 2015,” said CEO William Ding. He noted revenue from online games jumped 44% from the year-earlier quarter.

The company said its board approved a dividend of $0.39 per ADS for Q1, maintaining the rate it paid for Q4 2014. The Q1 dividend is expected to be paid on June 5 to shareholders of record as of the close of business on May 27.