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The company's revenue in the period rose 37 percent to 221.1 billion yuan ($33.9 billion), which was significantly above the expectations of analysts surveyed by Bloomberg: they had forecast a 33 percent increase. Alibaba posted a net profit of ¥78 billion ($12 billion), up 56% from the same quarter in 2019.
Alibaba's good quarterly results were helped by growth in online commerce, one of the company's key businesses. Online sales grew last year amid a COVID-19 pandemic and declining physical shop sales, and the third quarter falls on Bachelor's Day, which is traditionally marked by a massive sale in China.
The company's cloud business also performed well, with revenues up 50% for the quarter and reporting profits for the first time.
Even the fact that Alibaba is now under the scrutiny of Chinese regulators did not hinder its successful financial results. In November, after inspections by regulators, the IPO of the company's financial division, Ant Group, was postponed.
Later it became clear that the Chinese authorities are generally increasing pressure on the corporation and its founder Jack Ma. So, at the end of December, an antitrust investigation was launched against Alibaba. According to media reports, the Chinese government is not satisfied with the behaviour of Jack Ma, who periodically criticises the policy of the authorities, as well as the unwillingness of the corporation to give the authorities access to the massive amounts of information it collects about consumers.
source: bloomberg.com
Alibaba's good quarterly results were helped by growth in online commerce, one of the company's key businesses. Online sales grew last year amid a COVID-19 pandemic and declining physical shop sales, and the third quarter falls on Bachelor's Day, which is traditionally marked by a massive sale in China.
The company's cloud business also performed well, with revenues up 50% for the quarter and reporting profits for the first time.
Even the fact that Alibaba is now under the scrutiny of Chinese regulators did not hinder its successful financial results. In November, after inspections by regulators, the IPO of the company's financial division, Ant Group, was postponed.
Later it became clear that the Chinese authorities are generally increasing pressure on the corporation and its founder Jack Ma. So, at the end of December, an antitrust investigation was launched against Alibaba. According to media reports, the Chinese government is not satisfied with the behaviour of Jack Ma, who periodically criticises the policy of the authorities, as well as the unwillingness of the corporation to give the authorities access to the massive amounts of information it collects about consumers.
source: bloomberg.com
