Alibaba’s Q1 sales short of Wall Street ex­pec­ta­tions, shares fall

The China Post - - BUSINESS INDEX & -

Alibaba’s first-quar­ter net in­come more than dou­bled on strong growth across its online and mo­bile plat­forms.

But the Chi­nese e-com­merce pow­er­house’s sales still fell short of Wall Street ex­pec­ta­tions. Its shares fell 5 per­cent in pre­mar­ket trad­ing.

Alibaba went public in the U.S. in Septem­ber to much fanfare as in­vestors sought to tap into the rapidly grow­ing Chi­nese mid­dle­class con­sumer class. Its e-com­merce plat­forms, in­clud­ing Taobao and Tmall, make up 80 per­cent of Chi­nese e-com­merce.

But the quar­terly re­sults come as the Chi­nese econ­omy is fac­ing un­cer­tainty. The Chi­nese gov­ern­ment de­val­ued the yuan this week in an ef­fort to make its ex­change rate more mar­ket-ori­ented.

The com­pany said net in­come rose to 12.34 mil­lion Chi­nese yuan, or 11.92 yuan (US$1.92) per share. Ex­clud­ing one-time items, net in­come was 59 U.S. cents per share. That beat an­a­lyst ex­pec­ta­tions of 56 U.S. cents per share ac­cord­ing to Fac­tSet.

An­nual ac­tive buy­ers rose 32 per­cent to 367 mil­lion.

Rev­enue rose 28 per­cent to 20.25 mil­lion Chi­nese yuan (US$3.27 bil­lion), from 15.77 bil­lion Chi­nese yuan a year ago. That missed an­a­lyst ex­pec­ta­tions of US$3.32 bil­lion.

Sales on mo­bile de­vices made up more than half of Alibaba’s re­tail to­tal for the first time.

Rev­enue from cloud com­put­ing more than dou­bled to 485 mil­lion Chi­nese yuan (US$78 mil­lion).

Alibaba, based in Hangzhou, China, also an­nounced a US$4 bil­lion share re­pur­chase pro­gram over the next two years.

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