Alibaba’s third-quarter net income has exceeded analyst expectations, with a 32 per cent rise in revenue for the December quarter.
The Chinese e-commerce powerhouse reported revenue of $A5.33 billion with earnings of 99 cents a share. Analysts, who were polled by S&P Capital IQ Consensus Estimates, forecast the Alibaba Holding Group Ltd. to report $A5.11 billion with earnings of 89 cents per share.
Neil Saunders, CEO of global retail research agency Conlumino, said some of this uplift was “undoubtedly aided by the company’s very strong performance over the Singles Day shopping festival in November.” The festival mentioned attracted over 115 million visitors to Alibaba’s marketplaces and processed 467 million orders across all of its platforms during a 24-hour period.
Earnings from merchandise sold on the e-commerce giant’s marketplaces reached $149 billion, with 68 per cent of that coming from mobile. Despite a slowdown in China’s economy, Alibaba has attracted more users and has reported a continuing surge in mobile sales.
Saunders said Alibaba’s focus on technology has helped the e-retailer “understand the habits and preferences of its Chinese consumers as they browse and navigate the group’s various sites, news feeds, and entertainment options. This understanding puts Alibaba in a prime position when it comes to helping Western brands expand into China.”
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