On Thursday, Alibaba Group of China reported better-than-expected quarterly revenue and profit, aided by growth in its e-commerce and cloud computing businesses.
The beats show the company is managing to outperform expectations even as it weathers an increasingly competitive e-commerce industry and a tougher macroeconomic environment.
Alibaba’s revenue rose 42% to 114.92 billion yuan ($16.3 billion) in its first quarter ended June 30 from 80.92 billion yuan, a year earlier.
According to IBES data from Refinitive, analysts had expected revenue of 111.73 billion yuan,
Both Alibaba and smaller rival JD.com however are seeking to diversify amid slowing e-commerce revenue growth at home, due in part to markets in China’s biggest cities becoming saturated.
Alibaba has been diversifying into cloud computing and digital entertainment as growth at its massive core e-commerce business slows, and has made major management changes.
Revenues at its cloud computing business rose 66% to 7.79 billion yuan, while those at its core commerce business rose 44% to 99.54 billion yuan.
Net income attributable to ordinary shareholders was 21.25 billion yuan.
Excluding items, the company earned 12.55 yuan per American Depository Share. Analysts were expecting 10.25 yuan per ADS, according to IBES data from Refinitiv.
Chief Executive Daniel Zhang is expected to formally take over founder Jack Ma’s position as chairman in September, while the Chinese behemoth has put Chief Financial Officer Maggie Wu in charge of its strategic investments unit.
According to sources, Alibaba is planning a secondary listing in Hong Kong to replenish a war chest that has been diminished by investments to subdue threats from rivals such as food delivery firm Meituan.
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