Alibaba’s quarterly profits and revenue have beaten analyst expectations leading to a boost in its shares.
Revenue jumped 42 per cent to 114.92 billion yuan (£13.47 billion), coming above analyst expectations of 111.73 billion yuan (£13.09 billion), though this was slower than the 61 per cent growth seen a year prior.
This sent shares climbing over 3.3 per cent, a much needed boost for the tech giant which has seen $80 million wiped of its market value amid the escalating trade war with the US.
Net profits also more than doubled to 21.2 billion yuan (£2.48 billion), though it noted that its comparable profits a year earlier were hampered by a single exceptional charge related to compensation.
Without this exceptional charge profits would still have risen 27 per cent.
Alibaba’s core ecommerce business drove the majority of its revenue growth, rising 44 per cent to 99.5 billion yuan (£11.66 billion), including
This was largely driven by its Chinese-language ecommerce platform Tmall, which saw gross merchandise value (GMV) growth of 34 per cent, thanks to better expected retail sales in its domestic market.
Its food delivery business Ele.me also saw dramatic growth of 137 per cent.
This was helped not only by Tmall, but also by its food delivery business Ele.me, which saw 137% revenue growth year-on-year.
Furthermore, its burgeoning cloud computing business saw revenues rise 66 per cent to 7.8 billion yuan (£910 million).
Both Alibaba and JD.com comfortably outpaced analyst estimates this week, with fears that the trade war between the US and China, which is likely to continue to escalate, would drag heavily on sales.