NetEase, which develops and licenses online games targeted at the Chinese market such as flagship offering Fantasy Westward Journey (pictured), posted a net profit of $63.9 million for the second quarter of 2008, compared to $45.6 million for the same period the year prior.

Total revenues for the second quarter of 2008 were $104.4 million, compared to $81.3 million in Q2 2007, while second quarter revenues from online games jumped from $69.3 million to $86.8 million.
 
"We experienced a strong second quarter due to solid execution in our online gaming and advertising businesses,” said William Ding, CEO and director of NetEase.

“We believe that China's online gaming industry is in the midst of unprecedented growth and NetEase is very well positioned to benefit from this trend.”

China's online games market generated $637 million during the second quarter of 2008, according to data released on Tuesday by Analysys International, which pegged NetEase as the second largest Chinese online games operator with a 12.8 percent market share.

On Wednesday EaseNet, an affiliated company of NetEase, announced a three year licensing deal with Blizzard to bring StarCraft II, Warcraft III: Reign of Chaos and Warcraft III: The Frozen Throne to China, as well as the Battle.net platform which provides online multiplayer services for the games.