Alibaba profit up 37 per cent but revenue growth eases

Chinese e-commerce leader Alibaba said Wednesday that net profit increased 37 per cent in the latest quarter as growth in cloud computing and other business lines helped offset a slowing expansion in core online retail.

Net profit reached 33.0 billion yuan ($4.9 billion) in the October-December third quarter. Alibaba dominates China’s emerging consumer culture and its corporate results were widely anticipated for any signs that a worsening Chinese economic slowdown and the US-China trade tussle were turning off shoppers.

Revenue growth, the key measure of the company’s business health, indeed slowed in the quarter. Overall company revenues reached 41 per cent while turnover in core e-commerce was 40 per cent.

Most companies would envy such a performance, but that was the slowest increase in more than two years for a company accustomed to increases of 50 or even 60 per cent.

A consensus of analysts polled by Bloomberg had forecast a revenue rise of nearly 44 per cent.

Alibaba profit up 37 per cent but revenue growth eases

Chinese e-commerce leader Alibaba said Wednesday that net profit increased 37 per cent in the latest quarter as growth in cloud computing and other business lines helped offset a slowing expansion in core online retail. Net profit reached 33.0 billion yuan ($4.9 billion) in the October-December third quarter. Alibaba dominates Chinas emerging consumer culture and its corporate results were widely anticipated for any signs that a worsening Chinese economic slowdown and the US-China trade tussle were turning off shoppers. Revenue growth, the key measure of the companys business health, indeed slowed in the quarter. Overall company revenues reached 41 per cent while turnover in core e-commerce was 40 per cent. Most companies would envy such a performance, but that was the slowest increase in more than two years for a company accustomed to increases of 50 or even 60 per cent. A consensus of analysts polled by Bloomberg had forecast a revenue rise of nearly 44 per cent.