Daily Management Review

Mobile segment grows Alibaba's income


Despite concerns about slowing economic growth in China, in June Alibaba company showed 18%-growth in the number of active buyers, compared with 434 million people in the previous year. The number of active users increased by 39% to 427 million users per month, which almost doubled growth of the mobile unit revenues.

Charles Chan
Charles Chan
Thanks to subscribers base growth, Alibaba was able to speed up monetization of their services. Mixed rate of monetization of private Chinese retail sites rose to 2.79% from 2.33% in the II quarter of last year.

The segment of cloud services, where Alibaba provides access to computing power, also managed to increase revenue growth and reduce losses. This sector is expanding quite rapidly, and may soon become akey to the company's growth.

Income segment of cloud computing in the II quarter rose to 1.24 billion yuan ($ 187 million) from 485 million yuan, while the adjusted operating loss fell to 158 million yuan from the previous 368 million yuan.

In general, the company's profit fell by 76% to 7.55 billion yuan ($ 1.14 billion), or 2.94 yuan (46 cents) per share, with 30.84 billion yuan, or 11.92 yuan per share a year earlier. In the II quarter of last year, the figure soared due to high investment income of 27.38 billion yuan, which is associated with cinematic business of the Chinese Internet giant - company Alibaba Pictures.

Except for some items, Alibaba’s adjusted earnings amounted to 4.90 yuan (74 cents) per share. Revenue rose to 20.25 billion yuan to 32.15 billion yuan ($ 4.84 billion).

Analysts polled by Thomson Reuters expected an adjusted profit of 4.17 yuan per share, and revenue of 30.17 billion yuan.

Alibaba itself noted that total revenue growth of 59%, including revenue growth of 49% in the retail market of China, shows maximum rate of growth of the company since its release on the IPO.

Alibaba’s shares rose in price by 4.6% to $ 91.3. 

source: techcrunch.com