Alibaba posts strong revenue growth as Chinese economy continues to recover from Covid doldrums
- Revenue reached 234.16 billion yuan (US$32.29 billion) for the three months to June 30, up 14 per cent
- Strong results come as economy gradually recovers after ending of strict pandemic curbs
E-commerce titan Alibaba Group Holding reported the biggest percentage growth in revenue in over a year as China’s economy continues to recover from the ending of strict zero-Covid measures.
Revenue reached 234.16 billion yuan (US$32.29 billion) for the three months to June 30, up 14 per cent from 205.56 billion yuan a year ago, beating the consensus estimate of 223.75 billion yuan, and driven by “improvements across all business segments”.
Net income rose 51 per cent to 34.3 billion yuan under global accounting standards, the Hangzhou-based company said on Thursday, better than the 27.3 billion yuan expected by analysts surveyed by Bloomberg.
“Alibaba delivered a solid quarter as we continue to execute our reorganisation, which is beginning to unleash new energy across our businesses,” said Daniel Zhang Yong, chairman and chief executive officer of Alibaba.
The stronger results come amid a gradual rebound in economic activity in China following three years of strict Covid-19 controls, and as the e-commerce giant presses ahead with its restructuring.
Although China retail sales notched up slower growth of 3.1 per cent in June, down from a 12.7 per cent jump in May, this was mainly due to a low base last year when major cities like Shanghai were under lockdown. Meanwhile, Beijing has also moved to support the country’s digital platforms after a two-year regulatory crackdown.