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Alibaba’s quarterly revenue up 2%, beating expectations

Alibaba on Thursday reported a 2% increase in revenue to RMB 247.76 billion ($35.92 billion) for the December quarter, beating the average estimate of analysts polled by Yahoo. The Hangzhou-based company posted a net income of RMB 46.8 billion, up 69% from the same period last year. Revenue from Chinese commerce, Alibaba’s main source of revenue, accounting for nearly 70% of total sales, fell 1% to RMB 170 billion, which the e-commerce giant attributed to weak consumer demand and continued competition from rivals, while the rise in Covid 19 cases in December also affected its supply chain and logistics. Taobao and Tmall sales saw a mid-single-digit decline, according to the latest result. The firm’s supermarket chain Freshippo, budget shopping app Taobao Deals, and Taocaicai all narrowed their losses significantly, Alibaba said, but these businesses have yet to turn a profit. Strong order growth at Trendyol, the Alibaba-backed online shopping platform in Turkey, led to an 18% increase in the company’s international commerce. The Cainiao logistics division outperformed other segments in the quarter. Revenue increased by 27% year-on-year, mainly thanks to the increase in revenue from domestic consumer logistics services. [Alibaba]

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