Netease.com Inc (NetEase)’s 1Q 09 results reported healthy y-o-y top-line growth, driven by growth in Online game services revenues. Strong earnings performance was attributable to lower growth in cost and operating expenses together with lower tax expenses in addition to top-line growth during the quarter. We expect the Chinese online game industry to be less impacted by the economic downturn than other industries as online games are…

According to the Chinese MMORPG Industry Development Report 2008-2009, released by iResearch, the Chinese MMORPG industry has reached RMB20.8 bn with 52.2% y-o-y growth in FY 2008. It grew by 77.7% in 2007 and is estimated to grow at the rate of 20% per year until 2010. By FY 2012 the industry is expected to reach RMB68.8 bn, driven jointly by strong additions to subscriber-base…

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Overall results in 3Q 08 arrived above expectations and experienced healthy y-o-y growth. Operating margin witnessed a strong y-o-y uptick due to lower selling and marketing expenses as a percentage of revenues. Y-o-y earnings growth was however, partially offset by a higher effective tax rate during the quarter. Going forward, we expect top-line to be driven by Online Game services, driven by the rising popularity…