Posts
Reuters
BEIJING, Aug 23 (Reuters) - Alibaba Group Holding Ltd , the
world's biggest online retailer, topped first-quarter revenue estimates
on Thursday, driven by growth in its core e-commerce business.
Alibaba's U.S.-listed shares rose about 3 percent in premarket trade.
The company's revenue rose 61 percent to 80.9 billion yuan ($11.77 billion) in the April-June period, compared with the average analyst estimate of 80.7 billion yuan, according to Thomson Reuters I/B/E/S.
Net income attributable to shareholders, however, fell 41 percent to 8.7 billion yuan, or 3.3 yuan per share, due to one-off costs related to share-based compensation for Ant Financials' recent fundraising.
While revenue growth has accelerated since Alibaba's 2014 stock exchange listing, aggressive investment in offline retail, logistics and cloud computing has squeezed profit margins.
Excluding items, the company earned 8.04 yuan per share, or $1.22 per share, missing the average estimate of 8.15 yuan per share.
Sales at Alibaba's core e-commerce business rose 61 percent to 69.2 billion yuan, compared with a 58 percent rise the same quarter a year earlier.
Revenue at its cloud computing business nearly doubled to 4.7 billion yuan, while entertainment unit revenue rose 46.4 percent to 6 billion yuan.
Alibaba also said it formed a holding company for online food delivery service Ele.me and e-commerce platform Koubei, for which it received over $3 billion in new investment commitments, including from Alibaba and SoftBank, the company said.
Alibaba's core businesses include online marketplaces Tmall and Taobao and payment platform Alipay. Like most Chinese e-commerce firms, revenue is typically higher in April-June versus three months prior due to a mid-year sale which peaks on "lucky date" June 18.
However, analysts said sales were likely lower this year due to public holidays during the event.
Last week, rival JD.com Inc said it missed targets for the event due to an unexpected slump at the end of June.
($1 = 6.8740 Chinese yuan renminbi) (Reporting by Catherine Cadell; Additional reporting by Arjun Panchadar in Bengaluru Editing by Saumyadeb Chakrabarty)
Alibaba's U.S.-listed shares rose about 3 percent in premarket trade.
The company's revenue rose 61 percent to 80.9 billion yuan ($11.77 billion) in the April-June period, compared with the average analyst estimate of 80.7 billion yuan, according to Thomson Reuters I/B/E/S.
Net income attributable to shareholders, however, fell 41 percent to 8.7 billion yuan, or 3.3 yuan per share, due to one-off costs related to share-based compensation for Ant Financials' recent fundraising.
While revenue growth has accelerated since Alibaba's 2014 stock exchange listing, aggressive investment in offline retail, logistics and cloud computing has squeezed profit margins.
Excluding items, the company earned 8.04 yuan per share, or $1.22 per share, missing the average estimate of 8.15 yuan per share.
Sales at Alibaba's core e-commerce business rose 61 percent to 69.2 billion yuan, compared with a 58 percent rise the same quarter a year earlier.
Revenue at its cloud computing business nearly doubled to 4.7 billion yuan, while entertainment unit revenue rose 46.4 percent to 6 billion yuan.
Alibaba also said it formed a holding company for online food delivery service Ele.me and e-commerce platform Koubei, for which it received over $3 billion in new investment commitments, including from Alibaba and SoftBank, the company said.
Alibaba's core businesses include online marketplaces Tmall and Taobao and payment platform Alipay. Like most Chinese e-commerce firms, revenue is typically higher in April-June versus three months prior due to a mid-year sale which peaks on "lucky date" June 18.
However, analysts said sales were likely lower this year due to public holidays during the event.
Last week, rival JD.com Inc said it missed targets for the event due to an unexpected slump at the end of June.
($1 = 6.8740 Chinese yuan renminbi) (Reporting by Catherine Cadell; Additional reporting by Arjun Panchadar in Bengaluru Editing by Saumyadeb Chakrabarty)
Related Articles
-
Investing
Alibaba Faces More Declines as Trade War Heats Up
Alibaba's stock has fallen 14% off its June highs.
-
Investing
Alibaba's 2016: A Year in Review
Did Alibaba have a good 2016? That depends a lot on your point of view.
-
Investing
Assessing Alibaba's Post-Earnings Valuation
Chinese online retail giant Alibaba continues to outperform expectations.
-
Investing
Acquisition Binge Pinches Alibaba's Margins
Alibaba is noting double-digit revenue growth. But its net profit is waning amid declining margins.
-
Investing
What's Next For Alibaba?
Alibaba excited Wall Street its September IPO on the New York Stock Exchange. Seven months later, the e-commerce giant is still looking to shake things up.
-
Investing
Raymond James: Alibaba's Shares Can Gain 27%
A research report Friday explains why Alibaba's shares could gain another 27% this year.
-
Investing
Analysts, Hedge Funds Endorse Alibaba Ahead of Earnings
Despite the positive sentiment, investors should treat the e-commerce behemoth's stock with caution.
-
Investing
5 Reasons Alibaba's Earnings Disappointed in 2015 (BABA)
Look at the reasons why Alibaba's earnings disappointed in 2015, including weak economic growth, the soft renminbi and allegations of counterfeit products.
-
Investing
Alibaba's Singles' Day May Rake in Up to $24B
Alibaba's 24-hour shopfest kicks off Friday and is estimated to have around $24 billion in sales.
-
Tech
5 Things To Know About The Alibaba IPO
Five things to know about the company that dominates the world’s largest e-commerce market.
RELATED FAQS
-
What is the difference between revenue and sales?
Revenue is the income a company generates before any expenses are taken out. Sales are the proceeds from the selling of goods ...Read Answer >> -
What is the difference between revenue and income?
Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. ...Read Answer >> -
How does revenue sharing work in practice?
Find out how revenue sharing works as profits are distributed among associated business partners. Learn how revenue sharing ...Read Answer >> -
How do earnings and revenue differ?
Revenue is the total income earned by a company for selling its goods and services. Earnings are the bottom line on a company's ...Read Answer >> -
What is the difference between revenue and profit?
Revenue is the total amount of income generated by a company. Profit is the bottom line or net income after accounting for ...Read Answer >> -
What is the relationship between marginal revenue and total revenue?
Learn what total and marginal revenue are, how to calculate marginal revenue given total revenue, and how marginal and total ...Read Answer >>
