Alibaba to acquire 33pc stake in Ant Financial, clearing the way for Alipay operator’s IPO
E-commerce giant Alibaba raises annual sales forecast after posting a 56 per cent year-on-year increase in revenue to US$13 billion in the December quarter
Alibaba Group Holding has agreed to acquire a 33 per cent stake in affiliate Ant Financial Services, deepening the e-commerce company’s participation in China’s fast-growing financial technology sector and paving the way for the public listing of the firm that runs payments giant Alipay.
Hangzhou-based Alibaba also raised its annual sales forecast on Thursday after posting strong revenue growth in its fiscal third-quarter ended December 31, boosted by record consumer spending during its Singles’ Day shopping festival in November.
The company reported a 56 per cent year-on-year increase in total revenue to 83 billion yuan (US$13 billion) in the December quarter, surpassing the 79.7 billion yuan consensus estimate in a Bloomberg poll of analysts.
That prompted Alibaba to raise its annual revenue forecast to grow between 55 and 56 per cent, up from its initial 53 per cent projection.
Its net profit rose 36 per cent year-on-year to 23.3 billion yuan, which was its slowest after three quarters when profit growth was at least double. The company's shares fell 5.9 per cent to US$192.22 in New York trading on Thursday.