Alibaba Group said on Thursday that its net profit halved in the first fiscal quarter, while revenue was virtually flat.
The Chinese e-commerce giant said net profit for the quarter ended in June fell to 22.74 billion yuan ($3.36 billion), from 45.14 billion yuan in the same period last year, amid a drop in operating income, among other factors.
Earnings per share, however, stood at $0.22 between April and June, slightly beating analysts’ forecast of $0.20.
Quarterly revenue amounted to 205.55 billion yuan (US$30.7 billion), similar to the 205.74 billion yuan a year earlier, but also above the market consensus of US$30.3 billion. .
In addition, it resonated well with the growth of Alibaba’s cloud business. “After relatively slow April and May, we saw signs of recovery in our business in June,” said Daniel Zhang, the company’s president and CEO.
Alibabam’s CFO Toby Xu highlighted the steady revenue performance despite the challenges posed by the resurgence of Covid-19 outbreaks.
Toby Xu added that the company has reduced losses in key strategic businesses.
At around 8:40 am (GMT), Alibaba’s ADR jumped 4.4% in premarket deals in New York.
In anticipation for the release of the balance sheet, the company’s shares traded in Hong Kong had already closed today’s trading session up 5.15%. Source: Dow Jones Newswires.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
