Alibaba beats revenue estimates amid COVID-19 lockdown in China

Alibaba beat fourth-quarter revenue expectations on Thursday, as rising demand for some of its niche online shopping services in China offset weakness in its core markets due to the country’s COVID-19 lockdown.

Shares of US-listed Alibaba, which has lost nearly a third of its value so far this year, were up about 5 percent in premarket trading.

in revenue Alibaba’s The cloud computing division grew 12 percent to 18.97 billion yuan (about Rs 21,845 crore) in the reported quarter. In the core commerce unit, its largest, revenue rose 8 percent to 140.33 billion yuan (about Rs 1,61,643 crore).

However, the company said it would not release forecast for the new financial year, citing risks and uncertainties related to the pandemic.

rival It beat quarterly revenue estimates last week as more people shopped for groceries and other essentials online, though it warned of a hit in the coming quarters from supply-chain disruptions and sluggish consumption.

Overall, Alibaba’s revenue rose 9 percent to 204.05 billion yuan (about Rs 2,34,971 crore) in the quarter. Analysts had expected an average revenue of 199.25 billion yuan (about Rs 2,29,440 crore), according to Refinitiv data.

Annual active subscribers on its platforms reached nearly 1.31 billion for the fiscal year, including more than 1 billion subscribers in China for the first time ever.

Shareholders’ net income fell 59 percent to 61.96 billion yuan (about Rs 71,373 crore) for the fourth quarter ended March 31, mainly due to losses associated with its equity investments in publicly traded companies.

Alibaba’s fintech affiliate, Ant Group, reported a profit of about 22 billion yuan (about Rs 25,332 crore) for the quarter ended December, up from 21.76 billion yuan (about Rs 25,056 crore) a year ago, according to an Alibaba filing on Thursday. was. ,

© Thomson Reuters 2022

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