Alibaba Reveals December Quarter Sales Results

Alibaba Reveals December Quarter Sales Results

Alibaba Reveals December Quarter Sales Results

To be sure, Alibaba's revenues are still eye-popping by most standards: revenue for the quarter ended December 31, 2018 was 117.28 billion yuan (US$17.06 billion), an increase of 41 percent over the same period in 2018.

According to the New York Times, "Its revenue was slightly below analysts' expectations, growing 41 percent, its slowest pace since early 2016, reflecting both the sheer size of the company and widening troubles in the Chinese economy, the world's second largest". The company is valued at about $430 billion.

Alibaba dominates China's emerging consumer culture and its corporate results were widely anticipated for any signs of whether a worsening Chinese economic slowdown and the US-China trade tussle was curbing the country's appetite for shopping.

Revenue for its cloud business rose 84 per cent year-on-year to 6.6bn yuan, while its entertainment and media business rose 20 per cent to 6.5bn yuan.

However, Alibaba's Executive Vice Chairman Joe Tsai noted that sales ticked up in December, but demand for big-ticket items declined. Chinese consumers are still fundamentally very strong and consumption is going to grow over the next 5 to 10 years, he added.

"We live in an environment where external factors seem to drive investor sentiment regarding Alibaba's business", said Tsai in a call with analysts following the results on Wednesday.

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Growth in cloud computing and other business segments helped Chinese ecommerce giant Alibaba post a 37% net profit in the last quarter, Alibaba said in its earnings report on Wednesday.

Net profit reached $4.9 billion in the October-December third quarter.

Alibaba finance chief Maggie Wu said the profitability from the company's core commerce business allowed it to generate the money to continue to invest.

The company also announced that CTO Jeff Zhang has been put in charge of Alibaba Cloud, in addition to his existing duties. In addition, China's tier-3 and below cities are a new major area of growth as more than 70% of Alibaba's active users come from these areas.

Digital media and entertainment revenue increased by 20% to United States dollars 944 Million and revenue from Innovation initiatives and others rose by 73% to USD 193 Million.

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