Alibaba Beats Quarterly Revenue Estimates On Online Boom

Marco Green
February 4, 2021

The fallout from the Ant Group's IPO was disastrous to say the least: $35 billion worth of shares were never listed, CEO Jack Ma-China's richest man-disappeared for weeks on end, and global investors were spooked by the sudden assertion of Beijing's authority on the market.

The catalyst for Ma's current woes was an October 24 speech in which he blasted China's regulatory system, leading to the suspension of Ant's $37 billion initial public offering just days before its dual-listing in Hong Kong and Shanghai.

As per Reuters, Shanghai Securities News, which is also known as Xinhua News, the official state-run press agency of the People's Republic of China, published an article that bears a list of the best known entrepreneurial leaders in the country.

Regulators have since launched an anti-trust probe into the tech sector with Alibaba taking much of the heat, while tighter regulations for Ant Group are also being considered. They tumbled early in the session after the company reported its third-quarter results and warned that it faced a near-term challenge from changing regulations.

"We regard this as important opportunities for re-assessing and improving business practices", he told an earnings call. The news took the shares of the company up more than 8 per cent in Hong Kong.

Revenue rose 37 per cent to 221.08 billion yuan ($34.24 billion) in the three months ended December 31, above analysts' estimates of 214.38 billion yuan, according IBES data from Refinitiv.

Alibaba's e-commerce business benefited from a switch to online shopping triggered by the coronavirus pandemic.

Core commerce sales at the company, which runs China's two most popular e-commerce platforms, rose 38% to 195.54 billion yuan.

In November, Alibaba's China-focused Singles Day sale - the world's biggest online shopping event that eclipses the revenues generated on USA shopping holidays Black Friday and Cyber Monday - registered sales of US$74 billion in November.

"Ant Group's business outlook and IPO plans are subject to great uncertainty", the group said.

Net income attributable to ordinary shareholders was 79.4 billion yuan, or 28.85 yuan per American depository share, compared to 52.3 billion yuan, or 19.55 yuan per ADS, a year earlier.

Alibaba Cloud posted positive adjusted earnings during the quarter thanks to economies of scale with quarterly revenue growing 50 percent year-on-year to 16.11 billion yuan.

Other reports by Click Lancashire

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