Alibaba Experience Slowdown On Revenue Growth

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Asia's second most valuable public company published revenue of 117.28bn yuan (£13.4bn) for the three months to 31 December, compared to 83bn yuan a year earlier.

Anticipating the headwind, Alibaba previously lowered its revenue outlook for its financial year ending March even before the top sales season.

Last year Alibaba netted a record $30-billion from Singles' Day.

However, Alibaba's earnings results - often seen as a yardstick of consumer spending in the world's second-largest economy - are likely to ease some worries. Alibaba reported its slowest quarterly revenue growth since 2016 but otherwise cheered investors with its fourth-quarter report.

China's e-commerce giant, which also operates in financing, cloud computing, robotics, delivery, and media, among others, said today its sales in the three months through December increased 41 percent year-over-year to $17.1 billion.

Alibaba beat on earnings, but missed on sales.

Chinese consumers are still fundamentally very strong, and consumption is going to grow over the next five to ten years, he added. Alibaba's shares rallied as much as 3% during pre-market trading on Wednesday.

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Net profit reached $4.9 billion in the October-December third quarter.

Alibaba's shares, traded on the New York Stock Exchange, closed up more than 6 per cent on Wednesday.

China's economy posted a 6.6% expansion in 2018, the slowest in 28 years, as factory activity and domestic demand tapered.

Alibaba finance chief Maggie Wu said the profitability from the company's core commerce business allowed it to generate the money to continue to invest.

Alibaba Group Holdings has posted a 37% increase in net income for its 4 quarter a year ago, driven by growth in its main online commerce business despite a slowdown in the Chinese economy.

"As Chinese consumers upgrade their lifestyles, they will purchase higher-quality products as well as more services and entertainment", CLSA said, adding that Alibaba was well-placed to profit from this.

Digital media and entertainment revenue increased by 20% to United States dollars 944 Million and revenue from Innovation initiatives and others rose by 73% to USD 193 Million.

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