The Strategist

Alibaba's profit in Q3 exceeds expectations


01/31/2019 - 09:45



Chinese Internet giant Alibaba Group Hodling Ltd has significantly increased its net profit and revenue in the third fiscal quarter. The company’s profits exceeded forecasts, but revenues did not meet expectations.



charles chan via flickr
charles chan via flickr
According to a press release from Alibaba, net profit in October-December 2018 increased by 37%, to 33.05 billion yuan ($ 4.81 billion) compared to 24.07 billion yuan a year earlier. Net income per share increased to 12.64 yuan from 9.2 yuan.

Profit excluding one-off factors in the last quarter amounted to 12.19 yuan per share versus 10.61 yuan per share a year earlier, exceeding the average forecast of experts polled by FactSet at 11.45 yuan per share.

Alibaba’s quarterly revenue increased 41% to 117.28 billion yuan ($ 17.06 billion), but turned out to be worse than the market consensus forecast of 119.03 billion yuan.

Alibaba's key e-commerce operations revenue jumped 40%, to 102.84 billion yuan, cloud business revenue soared 84%, to 6.61 billion yuan. Revenues in the entertainment and digital media segment increased by 20%, to 6.49 billion yuan.

The number of active users accessing Alibaba’s services from mobile devices was 699 million at the end of the third financial quarter, compared with 666 million at the end of the previous quarter.

Alibaba owns China's largest e-commerce platform, including the most popular of them, Taobao. On these platforms, the company brings together buyers and sellers, providing them with various services. At the same time, Alibaba accounts for 80% of the country's e-commerce turnover.

Alibaba shares during pre-bidding in New York on Wednesday added to the price of 2.2%. Over the past three months, the company's capitalization has increased by 15%.

source: bloomberg.com




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