Saturday, 21 September, 2019

Alibaba reports strong revenue growth in 1st fiscal quarter

The logo of Alibaba Group is seen at the company's headquarters in Hangzhou Zhejiang province China The logo of Alibaba Group is seen at the company's headquarters in Hangzhou Zhejiang province China
Ginger Lawrence | 18 August, 2019, 14:43

The increase was apparently a testament to the company's ability to provide superior users experience.

So says Alibaba Group, the Chinese e-commerce giant, which on Thursday reported strong financial results for the three months that ended in June, despite China's slowing economic growth and a trade war with the United States that has hit the country's factories.

Cloud computing sales grew two-thirds to RMB7.8 billion during the quarter, primarily driven by an increase in average revenue per customer.

JD also reported better-than-expected second-quarter revenue on Tuesday, boosted by stronger sales in its online retail business.

It has also tied up with Starbucks to deliver coffee.

Alibaba's cloud division helps companies around the world host their own sites and CEO Daniel Zhang promised more growth ahead.

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Alibaba Group Holding Ltd. shrugged off the slowdown in the Chinese economy and the Washington-Beijing trade dispute in its fiscal first quarter, posting earnings today that beat analyst expectations on all major counts.

"Netease has always been open-minded in seeking business development opportunities and strategic business partners to bring more vitality to Netease's cross-border e-commerce and other business units", said Netease CFO Yang Zhaoxuan.

Net income attributable to ordinary shareholders was RMB21.252 billion (US$3.096 billion), and net income was RMB19.122 billion (US$2.785 billion). Adjusted earnings per share, in turn, reached 12.55 yuan during the quarter, well above the 10.25 yuan the market had anticipated. Wall Street had been calling for revenue of RMB111.73 billion, according to data compiled by Refinitiv.

Core commerce and cloud computing are two significant drivers of growth, representing 87% and 7% of the company's total earnings for the quarter.

This expense was significantly higher in the quarter ended June 30, 2018 because during the quarter Ant Financial completed an equity financing at a higher valuation, which required them to recognise the increase in value of these awards.

The Hang Seng Index has dropped roughly 12% since late July, when protestors staged a sit-in at the Hong Kong International Airport.