Alibaba revenue beats estimates as shoppers defy China slowdown

Alibaba revenue beats estimates as shoppers defy China slowdown

Alibaba revenue beats estimates as shoppers defy China slowdown

The results came after Ant Financial Services Group, which is controlled by Alibaba and valued at roughly $60 billion last April, reportedly delayed its highly anticipated public listing.

For the quarter ended March 31 revenue increased 60 per cent to US$5.6 billion. Its core e-commerce business remains strong, thanks to robust consumption in the world's second largest economy.

Mobile monthly active users on Alibaba's China retail marketplaces reached 507 million in March, an increase of 97 million from a year earlier. "The distinction between online and offline retail is going away because of the mobile phone". "Our focus on long-term strategic priorities - globalisation, rural expansion, building a world-class cloud computing business and creating a comprehensive media and entertainment platform - has laid a strong foundation for future growth".

Alibaba Group Holding Ltd BABA.N said on Thursday it would buy back shares worth up to $6 billion over two years, as it beat first quarter revenue forecasts but missed income estimates.

Alibaba reported a 505 million yuan operating loss from cloud computing in the first three months, despite an increasing number of paying customers from 765,000 to 874,000.

Full year revenue from digital media and entertainment increased 271 per cent year-over-year to US$2.14 billion.

Revenue in the fiscal year surged 56 percent to about 158.3 billion yuan year on year, according to Alibaba.

China's biggest e-commerce company posted adjusted earnings-per-share of 4.35 yuan, missing the 4.51 yuan average of estimates compiled by Bloomberg.

The company's shares listed in NY were marked down 3.6 percent to $116.6 in pre-market trading. Growing Chinese affluence is propelling billionaire founder Jack Ma's worldwide expansion, which include helping a million American businesses tap Chinese consumers and reaching foreign shoppers through AliExpress.

"Alibaba's Taobao platform is a clear leader in the C2C e-commerce sector, and its Tmall platform is the largest player in B2C e-commerce sector in 2016 with 57.5 per cent market share, followed by JD's 26.2 per cent and VIPShop's 3.6 per cent share", Nomura's analyst Shi Jialong wrote in a research note before the company released its results.

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