Alibaba revenue surges
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Chinese e-commerce giant Alibaba enjoyed a 40 percent rise in sales during its second financial quarter, performing beyond expectations.
Alibaba revenue rose to RMB119.02 billion (US$16.91 billion) in the September quarter, 40 percent above the RMB85.15 billion ($12.1 billion) during the same period last year, and ahead of projected revenues of RMB116.8 billion ($16.6 billion).
The results reflected leaps in both of the firm’s core businesses – a roughly 40-per-cent jump in e-commerce and a 64-per-cent leap in cloud computing.
Alibaba’s net income attributable to ordinary shareholders hit RMB72.54 billion ($10.32 billion).
Alibaba has been focusing on building its business in lower-tier Chinese cities to counter the effects of saturated markets and the US-Sino trade war.
“Average revenue per user in lower-tier cities is not as low as people imagine,” said Alibaba CFO Maggie Wu. “I think we have addressed very well in our Taobao apps different demands and levels of consumers.”
Questions & Answers
Q.What was the total revenue for Alibaba in the second financial quarter?
What was the total revenue for Alibaba in the second financial quarter?
Alibaba's total revenue for the September quarter reached RMB119.02 billion, which converts to US$16.91 billion. This figure was higher than the projected revenues for the period.
Q.How did the growth in Alibaba's core businesses contribute to the overall sales increase?
How did the growth in Alibaba's core businesses contribute to the overall sales increase?
The firm's core businesses, e-commerce and cloud computing, showed significant growth. E-commerce experienced a roughly 40-per-cent jump, while cloud computing saw a 64-per-cent leap.
Q.What strategy is Alibaba using to mitigate the impact of market saturation and the trade war?
What strategy is Alibaba using to mitigate the impact of market saturation and the trade war?
Alibaba is concentrating on expanding its business in lower-tier Chinese cities. This strategy aims to counteract the effects of saturated markets and the ongoing US-Sino trade war.
Q.Did Alibaba meet or exceed its revenue projections for the quarter?
Did Alibaba meet or exceed its revenue projections for the quarter?
Alibaba exceeded its revenue projections for the quarter. Actual revenue was RMB119.02 billion ($16.91 billion), surpassing the anticipated RMB116.8 billion ($16.6 billion).