Alibaba boasts 51% sales growth in Q4
Alibaba has recovered from a disappointing third quarter boasting a 51 per cent year-on-year sales increase to 93.5 billion yuan (£10.6 billion) during its fourth.
For the three months to the end of March, the Chinese ecommerce giant’s sales comfortably beat analyst expectations of 91.5 billion yuan (£10.3 billion), while net incomes topped 23.38 billion yuan (£2.65 billion).
For the full year Alibaba said revenues rose 39 per cent to 376.85 billion yuan (£42.69 billion), not taking into account revenue from newly consolidated businesses.
Operating margins dropped from 15 per cent to nine per cent over the quarter, while operating income dropped five per cent to 8.76 billion yuan (£990 million), failing to meet analyst forecasts.
It also saw monthly mobile users increase by 22 million during the quarter to 721 million by March, while annual active users were up 18 per cent to 654 million.
This comes as Chinese tech giants including Alibaba’s key rival JD.com, Tencent and Pinduoduo are struggling to come to terms with an increasingly stagnant home market.
JD.com posted its slowest revenue growth on record earlier this month due largely to dwindling growth in China.
According to official statistics, Chinese retail sales for April grew just 7.2 per cent, marking its slowest pace for 16 years.
Alibaba has taken not of this and is increasingly branching out to the international market, announcing last week that it would begin allowing users from other countries sell on its platform.