NTES / 9999.HK: Aggressive Promotion of New Games And Online Education Driving Topline Growth In 3Q20
NTES will report 3Q20 results on November 19th before the markets open with a 7am EST conference call. Normally, 3Q is a strong quarter for PC games, however, 3Q20 is a shorter quarter as the college entrance exam was pushed to July from June. Additionally, after being quarantined at home in 1Q20 and making up schoolwork in 2Q20, families and students finally have a chance to do outdoor activities. However, NTES launched a few new games in 3Q20, which included Fantasy Westward Journey 3D, Dawn of Isles, Sky: Children of Light and Onmyoji: Yokai Koya; these games performed well. Based on our data and model, we believe NTES’s 3Q20 revenue is likely to be at least in line with the Street consensus at RMB18,197M (24.3% Y/Y growth).