Alibaba continues to grow with 56% revenue increase, buoyed by ongoing e-commerce growth in China
Alibaba has again beat analyst estimates reporting a 56% increase in revenues for the quarter ending June 30, as the e-commerce giant continues to grow.
Alibaba posts yet another strong quarterly results
The ongoing strength of China’s ecommerce market was the main driver behind Alibaba’s robust results, with revenue of RMB 50.2bn ($7.4bn) and income of RMB 14.03bn ($2bn).
Alibaba’s core commerce revenues grew 58% year-on-year to reach RMB 43.02bn ($6.3bn), while revenue from cloud computing surged 96% to RMB 2.4bn ($359m)
Alibaba’s digital media and entertainment business increased 30% year-on-year to reach RMB 4.08bn ($602m).
The ecommerce giant added 12 million annual active consumers to top 466 million for the 12-month period ended March 31.
Mobile users increased by 22 million in the June quarter to reach 529 million monthly mobile users (MAUs).
Daniel Zhang, CEO of Alibaba Group, said: “Alibaba had a strong start to fiscal 2018, reflecting the strength and diversity of our businesses and the value we bring to customers on our platforms. Our technology is driving significant growth across our business and strengthening our position beyond core commerce.”
Maggie Wu, chief financial officer of Alibaba Group, said: “It is our intention to continue investing in long-term growth opportunities, some of which are already delivering significant value to customers and investors.”
Alibaba’s figures reflect the overall ecommerce market in China where online retail sales in June grew 41% year-on-year, according to the National Bureau of Statistics in China.
Last week, Alibaba rival JD.com reported robust growth figures, however the companies increased spend in marketing to challenge its dominant rival undermined its performance.