Alibaba Group’s Revenue Increased by 61%
OREANDA-NEWS Net profit of Chinese Internet giant Alibaba Group Holding Ltd. in the first financial quarter decreased by 1.8 times - to 7.65 billion yuan compared to 14.03 billion yuan.
The decrease is mainly due to a one-time increase in the cost of compensation to the company's employees (amounting to 11.8 billion yuan). It was a result of a significant increase in the assessment of the financial division of Alibaba - Ant Financial-in the last round of fundraising.
Profit, excluding one-time factors, increased to 8.04 yuan per share from 7.98 yuan per share. But it was worse than the average market forecast at 8.28 yuan per share.
At the same time, revenue in April-June jumped by 61% to 80.92 billion yuan ($11.8 billion). Experts predicted revenue near 81.4 billion yuan. The indicator grew due to high rates of revenue growth in all key business segments.
Revenue of the key business in the field of e-Commerce jumped by 61%, to 69.19 billion yuan. In the field of "cloud" technologies rocked by 93%, to 4.7 billion yuan. In the segment of entertainment and digital media increased by 46%, to 5.98 billion yuan. In the field of "innovative initiatives" jumped by 64%, to 1.06 billion yuan.
Experts sure, that Alibaba's shares began to sell more actively because of fears about the trade war between the US and China.
The annual audience of users of retail services of Alibaba in China increased to 576 million people compared to 552 million people on March, 31 this year. The number of users in China who are active at least once a month and get access to services from mobile devices increased by 17 million and reached 634 million people.
Alibaba owns China's largest e-Commerce platforms. It was founded by Jack Ma in 1999. Group owns several subsidiary companies and Internet platforms: Alibaba Pictures, Alibaba.com, AliExpress.com, Taobao.com, Tmall.com.
The company brings together buyers and sellers on these platforms, providing them with various services. At the same time, Alibaba accounts for 80% of the country's e-Commerce turnover.