Chinese Internet company NetEase.com Inc. announced its unaudited financial results for the quarter ended June 30, 2009, and showed mobile and online advertising revenue increases.

Total revenues for the second quarter of 2009 were CNY872.1 million, compared to CNY781.7 million and CNY715.9 million for the preceding quarter and the second quarter of 2008, respectively. Revenues from online games were CNY781.5 million for the second quarter of 2009, compared to CNY724.0 million and CNY595.0 million for the preceding quarter and the second quarter of 2008, respectively.

Revenues from advertising services were CNY72.8 million for the second quarter of 2009, compared to CNY41.0 million and CNY103.9 million for the preceding quarter and the second quarter of 2008, respectively. Revenues from wireless value-added services and others, or WVAS and others, were CNY17.8 million for the second quarter of 2009, compared to CNY16.6 million and CNY16.9 million for the preceding quarter and the second quarter of 2008, respectively.

Gross profit for the second quarter of 2009 was CNY691.9 million, compared to CNY641.7 million and CNY722.8 million for the preceding quarter and the second quarter of 2008, respectively. The company states the year-over-year decrease in gross profit was primarily attributable to the receipt of a business tax refund of CNY146.8 million in June 2008 and increased cost of revenues in the second quarter of 2009 as a result of increased staff-related costs resulting from increased headcount and increased business tax due to higher revenues in the second quarter of 2009, partially offset by increased game revenues in the second quarter of 2009.

Gross profit margin for the online game business for the second quarter of 2009 was 88.3%, compared to 90.0% and 91.2% for the preceding quarter and the second quarter of 2008, respectively. The quarter-over-quarter and year-over-year decreases in gross profit margin were primarily due to increased staff-related costs in the second quarter of 2009.

Total operating expenses for the second quarter of 2009 were CNY174.8 million, compared to CNY150.6 million and CNY149.7 million for the preceding quarter and the second quarter of 2008, respectively.

Net profit for the second quarter of 2009 totaled CNY468.1 million, compared to CNY416.7 million and CNY438.2 million for the preceding quarter and the second quarter of 2008, respectively.

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