07 Feb Alibaba misses earnings estimates in December quarter amid challenging economy, increased competition
Alibaba misses earnings estimates in December quarter amid challenging economy, increased competition
Net profit fell 77 per cent to 10.7 billion yuan (US$1.5 billion) in the three months ended December 31, the company announced on Wednesday after the close of trading in Hong Kong. That was lower than the 38.16 billion yuan consensus estimate from analysts surveyed by Bloomberg. Alibaba owns the South China Morning Post
Revenue rose 5 per cent to 260.35 billion yuan billion yuan in the quarter, missing analysts’ consensus estimate of 261.25 billion yuan, and slower than the 9 per cent growth seen in the September quarter.
Still, Alibaba chief executive Eddie Wu Yongming said in a statement that the company’s performance last quarter was “solid”, as it executed “focused strategies across the organisation”.
“Our top priority is to reignite the growth of our core businesses, e-commerce and cloud computing,” he said.
Shares of Alibaba closed down 1.45 per cent to HK$74.90 on Wednesday in Hong Kong, ahead of the quarterly earnings release.
