Goldman Sachs Previews NTES 4Q Results

NetEase.com, Inc. NTES will report 4Q10 results after the Chinese New Year, Goldman Sachs reports. “We forecast game revenue to be up 5% qoq due to a full quarter contribution of Wrath of Lich King (WLK),” Goldman Sachs writes. We model advertising revenue to increase 6% qoq on positive seasonality and portal restructuring, and mobile VAS revenue to be up 5% qoq. “We estimate total revenue of Rmb1.47bn (Bloomberg consensus: Rmb1.44bn), up 5% qoq and 18% yoy. We forecast op. margins ex-SBC to recover, up 4pp to 49% in 4Q10. We model net income of Rmb598mn (consensus: Rmb615mn), and diluted GAAP EPADS of US$0.69 US.” NetEase.com currently trades at $39.14.