Alibaba revenue surges 60% in 4th fiscal quarter
- Author: Zachary Reyes May 19, 2017,
May 19, 2017, 21:30
Alibaba reported revenue of $5.61 billion, up 60% and beating the consensus estimate of $5.2 billion (35.87 billion yuan).
Net income attributable to shareholders rose to 10.65 billion yuan, or 60 cents per share, from 5.37 billion yuan in the year-earlier quarter. Tencent, operator of China's biggest social network, reported a 55 per cent jump in first-quarter sales on Wednesday.
Its CEO Daniel Zhang said: "Our core commerce segment continued its significant growth and strong cash flow at large scale, enabling our aggressive investment in cloud computing [and] digital media and entertainment to drive the digital transformation of the economy and high-quality consumption across China". Up to 507 million customers used Alibaba's China retail platforms on their smartphones in March, an increase of 14 million from December. "The distinction between online and offline retail is going away because of the mobile phone". During fiscal year 2017, monetization of our mobile commerce platforms outpaced the monetization of the desktop computer platforms.
Like its United States rival Amazon - which claims more than 300 million customer accounts - Alibaba has expanded into a wide range of services, including cloud computing and media, via its Youku Tudou video hosting service. Its digital media and entertainment business increased 234% to $571 million.
The vendor said it was the largest public cloud services provider in China past year, citing figures from IDC. Alibaba's revenue for the full year was US$23 billion, an increase of 56 per cent year-over-year.
Income tax expenses soared 149 per cent to 4.6 billion yuan in the March quarter. Initially, Alibaba shares fell as much as 5.6% to $114 in NY, the biggest intraday drop in nearly a year. The stock has risen 52 per cent, boosting Alibaba's market value to exceed US$300 billion, in the process making Ma the wealthiest man in China, according to a Forbes ranking.
The Chinese e-commerce operator said its commerce revenue, which included the Tmall and Taobao marketplaces, grew 45 percent year-on-year to hit US$19.45 billion.
"Alibaba Cloud's top priority remains expanding its market leadership", the statement noted, adding that the services now transverse consumer brands, energy, financial institutions, healthcare, manufacturing, media and retail.