Alibaba Reports 61% Quarterly Revenue Growth

Published on: 04 May, 2018

Alibaba Group Holding Ltd (NYSE: BABA) on Friday reported financial results for the quarter ended March that topped analysts’ estimate, driven by strong growth in its core commerce business.

Alibaba, China’s e-commerce giant, said revenue jumped 61 percent to 61.9 billion yuan ($9.73 billion) in the quarter ended March 31, 2018. Analysts polled by Thomson Reuters had estimated revenue of 58.9 billion.

The acceleration of sales was driven by strong growth in its core commerce business. Revenue from core commerce increased 62 percent to 51.3 billion yuan. Revenue in cloud computing jumped 103 percent to 5.3 billion yuan.

The company has invested heavily in cloud computing, overseas e-commerce and brick-and-mortar retail to drive long-term growth.

Alibaba now forecasts revenue to increase 60 percent in the year ended March.

“Alibaba Group had an excellent quarter and fiscal year, driven by robust growth in our core commerce business and investments we have made over the past several years in longer-term growth initiatives,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “With the continuing roll out of our New Retail strategy, our e-commerce platform is developing into the leading retail infrastructure of China. During the past year we also doubled down on technology development, cloud computing, logistics, digital entertainment and local services so that we are in a position to capture consumption growth in China and other emerging markets.”

However, spending on acquisitions has hurt the company’s profitability. The company said net income attributable to shareholders was 7.6 billion yuan in the quarter  ended March, down 29 percent from the same period a year earlier.

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Marco Zhou

Email: Marco@financialinsiders.com

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