Alibaba beats earnings estimates in December quarter as China eases tech crackdown and Covid curbs
- The Hangzhou-based firm’s revenue rose 2 per cent in December quarter, showing moderate growth after Beijing ended Big Tech crackdown
- ‘Progress’ is a key word in Alibaba’s development this year, given the expectation for economic recovery, Alibaba CEO Daniel Zhang said
The Hangzhou-based company, which owns the South China Morning Post, reported a 2 per cent increase in revenue to 247.76 billion yuan (US$35.92 billion) for the October-to-December quarter, beating the 245.87 billion yuan estimated by analysts surveyed by Bloomberg.
Net income reached 46.8 billion yuan, compared with 27.7 billion yuan a year earlier, better than the analysts’ estimates of 34.8 billion yuan. Adjusted profit grew 12 per cent to 49.9 billion yuan.
“Given the expectation for economic recovery following the lifting of Covid-19 measures and China’s reopening, I have chosen ‘progress’ as a key word internally to set the tone for Alibaba’s development this year,” said Daniel Zhang Yong, chairman and CEO of Alibaba, during a conference call with analysts on Thursday evening.
Alibaba shares rose 2.4 per cent in Hong Kong on Thursday, ahead of the earnings release.