China's internet and online game services provider NetEase on Tuesday reported a 20.2 percent increase in net revenue for the first quarter (Q1), compared with the same period last year, thanks to strong performance in the online games sector.

Total net revenues reached 20.5 billion ($3.1 billion) for the first three months. Online game services net revenues stood at 15 billion during the period, an increase of 10.8 percent year on year.

Youdao, NetEase's intelligent learning firm, reported a net revenue of 1.3 billion for the first quarter, an increase of 147.5 percent year on year.

Ding Lei, founder and chief executive of NetEase, said the surge in net revenue was mainly attributable to its flagship games as the company continued to launch a variety of new games.