40 percent on-year Friday,
although net profits more than tripled thanks in part to a one-time
payment from a fintech affiliate.
Total revenue was 119 billion yuan ($16.9 billion), with growth down
from 42 percent in the April-June period and 54 percent in last year’s
second quarter, a company statement said, in its first earnings report
since founder Jack Ma stepped aside as chairman in September.
The second-quarter jump in net profits was partly due to a one-time
payment received in September as part of a deal in which Alibaba
acquired 33 percent equity in fintech affiliate Ant Financial while
ending a previous profit-sharing arrangement, the company said.
In a presentation to investors Friday Alibaba attributed the group’s
continued revenue growth — which comes amid a slowdown in the world’s
number two economy — to “robust” expansion of its China retail and cloud
businesses.
Cloud computing was the among the fastest-growing revenue sources for
the company, with revenues from the segment growing 64 percent
year-on-year to 9.2 billion yuan.
Net income attributable to ordinary shareholders at the group jumped
262 percent in the July-September period from a year ago, to 72.5
billion yuan ($10.1 billion)
Nearly 60 percent of companies listed in China used Alibaba’s cloud
services as of August 2019, the company said, thanks in part to
digitisation in the public sector and traditional industries.
“With sustained consumer engagement and spending across the Alibaba
economy, we have continued our revenue and profit growth,” Maggie Wu,
Chief Financial Officer of Alibaba Group, said.
Ma, who founded the company in 1999, handed the reins over to a team of executives led by CEO Daniel Zhang in September.
Friday’s results come days ahead of Singles Day on November 11, the largest shopping holiday of the year in China.
Last year, merchants on Alibaba’s e-commerce platforms moved 213.5
billion yuan worth of merchandise during the shopping bonanza.
Alibaba dominates China’s rapidly expanding consumer culture and its
corporate results are closely watched for any signs that a Chinese
economic deceleration or US-China trade tensions are impacting spending.
Companies such as Alibaba are at the nexus of a national economic
strategy to encourage more domestic consumer spending and thereby lessen
the reliance on fickle foreign demand for Chinese exports.
Nevertheless, in September, Alibaba said it had bought Kaola, one of
China’s top online shopping platforms for foreign brands, from fellow
internet titan Netease for about $2 billion.
Chinese e-commerce giant Alibaba said
second-quarter revenue growth slowed toPages
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