NetEase ( NTES - Get Report) posted a fourth-quarter profit Tuesday and said it would take a first-quarter charge for the purchase of an online gaming technology.

For its fourth quarter ended Dec. 31, the Beijing-based new media company earned $16 million, or 45 cents a share, up from the year-ago $11 million, or 33 cents a share. Revenue rose 55% from a year ago to $31.6 million, driven by a 23% sequential gain in online gaming revenue. The results were in line with Wall Street's expectations.

"NetEase continues to leverage the marketing power of its highly popular Chinese web sites to drive growth to the top line revenue," said acting CEO Ted Sun.

The company made its fourth-quarter report at the end of a day in which Chinese online media stocks rallied sharply on hopes that the sector may soon see some consolidation. Online gaming specialist Shanda sparked Tuesday's runup by disclosing a 19.5% stake in mobile messaging services operator Sina ( SINA - Get Report).

NetEase said it would take a $2.5 million first-quarter charge on its purchase of "a 3D game technology related to the future development of online games."

Late Tuesday, NetEase slipped 29 cents to $40.35.