On Thursday, Alibaba Group Holding Ltd. reported its fourth-quarter revenue and its earnings results surpassed the expectations of analysts. The company saw growth in the demand for its online shopping services in China as there was a resurgence in Covid-19 disease. The company’s US-listed shares were up about 5 percent in premarket trading. These shares have lost about a third of their value so far this year.
The company’s cloud computing division was up 12 percent at 18.97 billion yuan in the fiscal fourth quarter. Its largest unit, the commerce unit, saw its revenue jump 8 percent to 140.33 billion yuan.
The company failed to issue a forecast for the new fiscal year. It cited uncertainties and risks associated with the pandemic as the reason for not issuing a forecast.
Chinese online companies like Alibaba have reported good earnings reports boosted by the Covid-19 resurgence. Rival company JD.com also reported a beat on its quarterly revenue noting that more people shopped for groceries and other essentials online. Like others, it warned of the risk and uncertainties from supply-chain disruptions, declining consumption, and a return to brick-and-mortar stores.
Alibaba saw its revenue grow 9 percent to 204.05 billion yuan or $30.35 billion in the quarter. According to data from Refinitiv, analysts had expected revenue of 199.25 billion yuan. The company hit a milestone of 1 billion customers in China for the first time in the quarter. Annual active consumers on its platforms reached about 1.31 billion.
Net income attributable to shareholders fell 59% to 61.96 billion yuan in the fourth quarter ended March 31. The company said this was primarily due to losses associated with its equity investments in publicly traded companies.
Alibaba’s fintech affiliate Ant Group, reported a profit of about 22 billion yuan for the quarter ended December, according to Alibaba’s filings on Thursday, compared with 21.76 billion yuan a year ago.
The company has also had to deal with regulators too.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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