Chinese Internet company Netease.com (NTES) has posted its unaudited financial results for the quarter and fiscal year ended December 31, 2007.

Total revenues for the fourth quarter of 2007 were CNY622.1 million, compared to CNY571.1 million and CNY540.3 million for the preceding quarter and the fourth quarter of 2006, respectively. Revenues from online games were CNY507.0 million for the fourth quarter of 2007, compared to CNY468.7 million and CNY451.6 million for the preceding quarter and the fourth quarter of 2006, respectively. Revenues from advertising services were CNY98.1 million for the fourth quarter of 2007, compared to CNY85.5 million and CNY72.1 million for the preceding quarter and the fourth quarter of 2006, respectively. Revenues from wireless value-added services and others were CNY17.0 million for the fourth quarter of 2007, compared to CNY16.9 million and CNY16.6 million for the preceding quarter and the fourth quarter of 2006, respectively.

"We are pleased with our improved content and successful integration of our email and blog services, allowing us to retain and grow traffic on the Netease websites, while providing a solid platform to enhance our advertising revenues," said William Ding, CEO of Netease.

Gross profit for the fourth quarter of 2007 was CNY488.0 million, compared to CNY441.9 million and CNY456.7 million for the preceding quarter and the fourth quarter of 2006, respectively. Gross margin for the online game business for the fourth quarter of 2007 was 90.7%, compared to 89.4% and 90.3% for the preceding quarter and the fourth quarter of 2006, respectively. The quarter-over-quarter increase was primarily due to higher game revenues reported for the fourth quarter of 2007, while related costs were stable. The year-over-year gross margin ratios remained relatively stable.

Gross margin for the advertising business for the fourth quarter of 2007 was 52.0%, compared to 54.0% and 50.5% for the preceding quarter and the fourth quarter of 2006, respectively. Gross loss margin for the wireless value-added services and others business for the fourth quarter of 2007 was 19.5%, compared to 33.3% and 18.9% for the preceding quarter and the fourth quarter of 2006, respectively.

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